by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to rise at the opening on Monday, while European stock markets are mixed at mid-session, investors digesting numerous monetary policy decisions announced last week.
Futures on New York indices suggest Wall Street opening in the green, with the Dow Jones rising 0.19%, while the Standard & Poor’s 500 takes 0.21% and the Nasdaq 0.12%.
In Paris, the CAC 40 fell 0.4% to 7,566.73 points around 11:08 GMT, compared to an increase of 0.35% for the FTSE in London, supported by the performance of Vodafone. Conversely, the Dax in Frankfurt lost 0.29%.
The pan-European FTSEurofirst 300 index lost 0.14%, compared to 0.38% for the EuroStoxx 50 and 0.13% for the Stoxx 600.
Investors are digesting several monetary policy decisions taken last week, which give hope that rates have reached their plateau: the Federal Reserve thus surprised with its accommodating tone, while investors were expecting a more restrictive speech .
The European Central Bank, the Bank of England and the Swiss National Bank also maintained their rates at their current levels, although maintaining a tougher stance than that of the Fed.
“All the newsflow that came out after (the Fed meeting) was simply irrelevant to the markets: this surprise pivot in a context of resilient growth triggered a broad rally, and a rally that favored the laggards of the cycle tightening – duration, small and mid caps and value (style)”, summarizes Florian Ielpo, head of research at Lombard Odier.
European markets remained animated on Monday by the publication of a falling Ifo index, and by comments from Bostjan Vasle, member of the ECB Governing Council.
This week, investors will be paying attention to several inflation indicators, published Tuesday for the euro zone, Wednesday for the United Kingdom, and Friday for the United States.
Furthermore, the Bank of Japan will announce on Tuesday its next decision on interest rates, eagerly awaited by the markets: the Japanese central bank is the last central bank of rich countries not to have raised its rates.
VALUES TO FOLLOW IN WALL STREET
More Chinese public agencies and state-owned enterprises across the country have asked their staff not to bring Apple-produced iPhones and other foreign devices to work, Bloomberg News reported Friday. .
IBM said on Monday it would buy Software AG’s StreamSets and webMethods platforms for 2.13 billion euros.
VALUES TO FOLLOW IN EUROPE
Tikehau Capital announced on Monday that it had entered into advanced discussions with Nikko Asset Management for a commercial and capital partnership in Asia, and advanced by 3.29%.
Trading in Casino shares was suspended on Monday at the company’s request and pending a press release, stock exchange operator Euronext said.
Iliad has submitted to the Vodafone group a proposal to merge their activities in Italy into a new joint venture, the French telecoms group announced on Monday, which pushes Vodafone up 6.35%, one of the best performances in the Stoxx 600. The telecoms sector advances by 0.4%.
Chemical manufacturer OCI jumped 15.56%, leading the Stoxx 600, after announcing the sale of its stake in Iowa Fertilizer Company for $3.6 billion to Koch AG & Energy Solutions.
RATE
US yields continue their decline, triggered after the last Fed meeting, while European yields hesitate.
The ten-year Treasury yield eroded by 2.8 bp to 3.8997%, while the two-year yield fell 3.6 bp to 4.419%.
The yield on the German ten-year rate is stable at 2.019%, that of the two-year rate remains at 2.504%.
CHANGES
The euro is strengthening against the dollar despite comments from Bostjan Valse and the Ifo indicator, with investors anticipating that the ECB’s monetary policy will remain restrictive for longer than that of the Fed.
The dollar is standing still against a basket of reference currencies, the euro takes 0.13% to 1.0908 dollars, and the pound sterling loses 0.12% to 1.266 dollars.
OIL
Crude prices are increasing with the weakness of the dollar, the attacks in the Red Sea and Russia’s announcement on Sunday of a further drop in its production in December.
Brent rose 0.56% to $76.12 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.52% to $71.06.
(Written by Corentin Chappron, edited by Blandine Hénault)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
