by Claude Chendjou

PARIS (Reuters) – European stock markets ended with slight variations on Monday, with investors’ eyes focused on the decisions of the American Federal Reserve (Fed) and a burst of results from large companies, particularly in new technologies.

In Paris, the CAC 40 ended with a gain of 0.09% to 7,640.81 points, getting a little closer to its historic record of 7,653.99 points, reached on December 14. The Parisian index was notably supported by LVMH (+3.2%), whose stock continued its surge on Friday following better-than-expected quarterly results. The British Footsie dropped 0.03%. The German Dax, down 0.12%, was particularly weighed down by Bayer (-4.86%), the group having been ordered to pay $2.25 billion in a lawsuit linked to Roundup.

The EuroStoxx 50 index gained 0.05% and the FTSEurofirst 300 gained 0.24%. The Stoxx 600, which hit a two-year high on Friday, increased by 0.16%, thanks in particular to the energy sector (+0.96%).

At the close in Europe, the Dow Jones gained 0.02%, the Standard & Poor’s 500 advanced 0.12% and the Nasdaq gained 0.31%, in trading without much conviction while waiting for the Fed.

After the European Central Bank (ECB), which decided last week to keep its key rates unchanged, the market is awaiting decisions on Wednesday from the Fed and Thursday those from the Bank of England (BoE).

For these two central banks, a status quo on rates is expected at the end of their meeting, but investors will be on the lookout for signs on the timetable of the first drop in the cost of credit.

In addition to monetary policy, the publications planned this week in Europe and the United States from the giants of technological news, pharmaceuticals, banks and industry are pushing investors to be cautious.

VALUES IN EUROPE

Eutelsat fell 14.46% after lowering its annual outlook, dragging the SES satellite group in its wake (-3.83%).

Philips lost 4.44% after the announcement of an agreement with the FDA, the American health authority, concerning the ban in the United States on the sale of new respiratory devices.

Ryanair, which lowered its annual profit forecast after removing its flights from certain online sites, dropped 4.04%.

Holcim rose 4.7% as the Swiss construction giant announced plans to spin off its North American operations and list them on the New York Stock Exchange.

CHANGES

The dollar rises 0.15% against a basket of benchmark currencies, as the probability of a Fed rate cut in March has risen to 49% from 73% a month ago, according to CME’s Fedwatch barometer. Group.

The euro stands at 1.0804 dollars, down 0.44%.

The pound sterling is trading at $1.2678 (-0.16%).

RATE

The statements of several ECB officials, who also suggested on Monday that the institution’s next major decision would be a reduction in its key rates, caused a relaxation on the bond market.

The ten-year German Bund rate ended down almost six basis points, at 2.234%, and the two-year rate fell 5.5 points, to 2.4773%.

In the United States, the yield on ten-year Treasuries is also down, by 5.7 points, to 4.0988%, continuing to benefit from the slowdown in core PCE inflation, including the index for month of December was published on Friday.

OIL

Oil prices are volatile, with the contagion effect of a possible liquidation of Chinese real estate giant Evergrande outweighing tensions in the Middle East at the close of European stock markets.

Around 4:50 p.m. GMT, Brent fell by 1.3% to 82.46 dollars per barrel and American light crude (West Texas Intermediate, WTI) by 1.5% to 76.84 dollars after having respectively touched 84.80 during the session. dollars and 79.29 dollars.

(Writing by Claude Chendjou, edited by Kate Entringer)

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