PARIS (Reuters) – European stock markets ended on a mixed note on Monday, in a wait-and-see context before the publication of activity indicators in the euro zone and the United States this week.
In Paris, the CAC 40 lost 0.18% to 7,332.59 points, while the German Dax ended directionless and the British Footsie fell 0.22%.
The EuroStoxx 50 index, the FTSEurofirst 300 and the Stoxx 600 ended without a marked direction.
The markets are hesitant at the start of a week poor in publications, but which will be all the more important as they will precede numerous monetary policy meetings.
In the euro zone, services PMIs are expected on Tuesday, and GDP for the third quarter on Thursday. In the United States, the tertiary sector activity indicator will be published on Tuesday, and the monthly employment report from the Department of Labor on Friday.
Monetary policy decisions from the Central Bank of Canada and Australia are also expected on Tuesday, followed by investors who believe that they shed light on the debates animating the central banks of developed economies.
In fact, the Federal Reserve will make its next rate decision on December 13, followed on December 14 by the European Central Bank and the Bank of England.
Currently, the markets are resolutely positioning themselves in favor of an upcoming rate cut.
“Expectations of key rate cuts are now seen as closer and stronger in 2024, on both sides of the Atlantic, which translates into a massive decline in real rates across all maturities,” note the strategists of LBPAM.
“The prospect of less restrictive monetary policies also fuels risk-taking, but the scenario that the market ‘plays’ does not seem trivial”, continue the strategists, who judge that the risk of too sudden a slowdown in activity or of persistent inflation are not sufficiently taken into account by investors.
The renewed tensions in the Red Sea also revive fears of an extension of the Israeli-Palestinian conflict.
VALUES
Roche rose 2.8% after announcing on Monday that it had reached a definitive agreement to acquire the American group Carmot Therapeutics for 2.7 billion dollars (2.49 billion euros), in order to gain exposure to the market in full boom in the treatment of obesity.
Nokia fell by 6.5%, the bottom of the Stoxx 600, against a backdrop of rumors of a loss of contract with the American telecoms operator AT&T, which plans to remove the Finnish group from its list of suppliers.
Rolls Royce jumped 3.14% to a four-year high during the session after Goldman Sachs resumed its coverage of the stock and recommends “buy”, and JP Morgan raised its recommendation to “neutral”. ” to “overweight”.
A WALL STREET
Wall Street is retreating in a wait-and-see situation.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.4% for the Dow Jones, compared to 0.76% for the Standard & Poor’s 500 and 1.38% for the Nasdaq. Composite.
RATE
U.S. yields are rebounding after falling in November at their fastest pace since August 2011.
At the close of the European interest rate markets, the ten-year Treasury yield rose 6.4 bp to 4.2876%, compared to 8.1 bp for the two-year rate, to 4.6477%.
The German ten-year yield eroded by 1.3 bps to 2.35%, while that of the two-year rate rose by 1.4 bps to 2.677%.
CHANGES
The dollar is recovering after posting a weekly loss over the last three weeks.
The greenback gained 0.47% against a basket of reference currencies, while the euro lost 0.61% to 1.0815 dollars. The pound sterling fell 0.61% to $1.2623.
Bitcoin and ether rebound, up respectively 7.11% to $41,550.96 after exceeding $42,000 during the session, and 6.28% to $2,222.21, supported by expectations of a rate cut of the Fed and the hope that an ETF exposed to bitcoin will be launched in early 2024.
METALS
Geopolitical fears and expectations of a Fed rate cut supported gold, which hit an all-time high during the session at $2,135.40.
The metal has since given up part of its gains and lost 2.35% to $2,022.29.
OIL
Crude is falling, with markets digesting the latest OPEC+ meeting, which did not result in a joint decision on the group’s production.
Brent lost 0.57% to $78.43 per barrel, American light crude (West Texas Intermediate, WTI) lost 0.82% to $73.46.
(Written by Corentin Chappron, edited by Tangi Salaün)
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