by CORENTIN CHAPRON
PARIS (Reuters) – European stock markets ended in mixed order on Monday after restrictive statements from central bankers, and before the publication of numerous indicators this week.
In Paris, the CAC 40 lost 0.37% to 7,568.86 points, while the German Dax fell 0.6%. The British Footsie advanced 0.5%.
The EuroStoxx 50 index ended the session down 0.64%, compared to 0.28% for the FTSEurofirst 300 and 0.27% for the Stoxx 600.
Investors hesitated after several statements which tempered the optimism of markets convinced that the easing of central banks’ monetary policies is imminent.
Bostjan Vasle, Peter Kazimir and Yannis Stournaras, three members of the governing council of the European Central Bank (ECB), warned on Monday that talk of monetary easing was premature and that inflation still remained too high.
On the Federal Reserve side, members of the board of governors Austan Goolsbee and Loretta Mester insisted that the markets were too aggressive in their expectations of rate cuts, and that the question of easing did not yet arise.
“The doubling of super-core inflation (excluding food, energy and housing) in the United States in November reminds us that we will still have to reckon with inflation next year,” summarizes Christopher Dembik, strategy advisor. investment at Pictet AM.
“The disinflation process will take time and will certainly limit the room for maneuver of central banks to initiate an aggressive cycle of rate cuts.”
The Ifo business climate index also deteriorated unexpectedly in December, according to figures published on Monday.
This week, investors will be attentive to the Bank of Japan’s next decision on Tuesday, as the Japanese central bank attempts to negotiate an end to its ultra-accommodative monetary policy.
The week will also be rich in indicators: in the United States, the number of new housing constructions is expected on Tuesday, consumer confidence on Wednesday, the final GDP for the third quarter on Thursday and, on Friday, PCE inflation, consumption of Durable Goods and Michigan’s Definitive Sentiment Index.
Eurozone inflation is expected on Tuesday, and UK inflation on Wednesday.
OIL
Crude oil is up sharply as markets worry about a possible interruption of maritime traffic in the Red Sea after several attacks on merchant ships.
Brent rose 2.43% to $78.41 per barrel, its highest since the beginning of December, and American light crude (West Texas Intermediate, WTI) gained 2.49% to $73.21.
VALUES
ArcelorMittal rose 5.29%, leading the CAC 40, after the Japanese group Nippon Steel won the auction to buy US Steel, a process in which ArcelorMittal also participated.
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 2.06%.
Trading of Casino shares will resume on Tuesday. The group announced on Monday the opening of exclusive discussions on the sale of its hypermarkets and supermarkets with the distribution groups Auchan and Groupement Les Mousquetaires, parent company of Intermarché.
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 caused Vodafone to increase by 3.88%.
Chemical manufacturer OCI jumped 20.87%, leading the Stoxx 600, after announcing a sale of its stake in Iowa Fertilizer Company for $3.6 billion to Koch AG & Energy Solutions.
The energy sector and the basic resources sector posted the best sectoral performances of the Stoxx 600, up 1.16% and 1.52%, supported by fears of a suspension of maritime traffic in the Red Sea.
A WALL STREET
Wall Street is showing an increase at closing time in Europe, before the publication of numerous indicators this week.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.16% for the Dow Jones, compared to 0.46% for the Standard & Poor’s 500 and 0.37% for the Nasdaq. Composite.
RATE
Yields rose in Europe, after restrictive comments from European and American monetary policy makers.
The yield on the German ten-year rose 6.2 bps to 2.075%, while that of the two-year rate rose 4.9 bps to 2.548%.
At the close of the European interest rate markets, the ten-year Treasury yield rose 2.6 bp to 3.9539%, compared to a two-year rate stable at 4.4569%.
CHANGES
The euro strengthens, supported by statements from several monetary policy makers, while the pound falls before the publication of British inflation on Wednesday.
The dollar is stable against a basket of reference currencies, while the euro gains 0.23% to 1.0919 dollars. The pound sterling fell 0.28% to $1.2639.
(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.
