by Claude Chendjou
PARIS (Reuters) – The main European stock markets ended with slight variations on Monday, while on Wall Street the trend was also cautious at mid-session in a context of profit-taking after the recent record highs of the indices.
The basic resources (-2.02%) and energy (-0.46%) sectors were among the biggest decliners in Europe amid rising bond yields as investors are now in the market. awaiting inflation figures in the euro zone (Friday) and the United States (Thursday).
In Paris, the CAC 40 ended down 0.46% at 7,929.82 points, nevertheless remaining close to the threshold of 8,000 points that it came close to last week. The German Dax, driven in particular by the defense group Rheinmetall (+2.8%), recorded a new record during the session at 17,460.53 points, before reducing its gains to 0.02% at the close. The British Footsie fell 0.29%.
The EuroStoxx 50 index lost 0.17% and the FTSEurofirst 300 0.33%. The Stoxx 600, down 0.37%, moved slightly from its historic peak on Friday, at 497.74 points.
At the close in Europe, the Dow Jones gained 0.01%, the Standard & Poor’s 500 fell by 0.09% and the Nasdaq rose by 0.14%.
The wait-and-see attitude prevails as the S&P 500 and the Dow Jones recorded respective records on Friday at 5,111.06 points and 39,282.28 points in the wake of Nvidia’s forecasts. The American semiconductor manufacturer rose again on Monday, by 1.15%, very close to the mark of 2,000 billion dollars in market capitalization.
Berkshire Hathaway is close to the $1 trillion threshold on the stock market after reporting record operating profit in 2023.
VALUES IN EUROPE
In Paris, going against the trend, Renault (+0.585%) finished in the green after the presentation at the Geneva motor show of its highly anticipated new electric R5 and the confirmation of discussions with Volkswagen to share the architecture of the future Twingo.
Casino (+19.21%) also ended up after the validation by the commercial court of the rescue plan for the group led by Czech billionaire Daniel Kretinsky.
Tele2 climbed 5.3% following the announcement of a stake in the Swedish telecoms operator by Iliad founder Xavier Niel for 13 billion crowns (1.16 billion euros) .
Zealand Pharma soared 35.67%, leading the Stoxx 600, thanks to positive results from an experimental treatment for fatty liver.
Bank of Ireland fell 10.55% after financial forecasts for the current year fell short of expectations.
RATE
Bond yields in Europe rebounded on Monday before the publication of inflation figures on Friday: that of the German Bund at ten ended with a gain of 6.5 points, to 2.442%, and that at two years with an increase of 5 .2 points, at 2.9403%.
The ten-year Italian BTP yield, which fell last week to a low since February 5 after a fall of more than ten basis points on Friday, ended Monday at 3.9%, an increase of almost seven points.
Markets anticipate a rate cut from the European Central Bank (ECB) of just 25 basis points in June and no further reductions in April.
During a hearing before the European Parliament in Strasbourg, Christine Lagarde, the president of the ECB, also estimated that wage growth remained sustained in the euro zone, even if companies are likely to absorb part of this increase. by reducing their profit margins.
In the United States, yields on ten-year and two-year US Treasury bonds rose by approximately three points and two points respectively, to 4.2953% and 4.7247%, after significant debt issuance.
The CME Group’s Fedwatch barometer shows that the Fed will only lower its rates in June with a probability of 54.9% while the market was still counting with a probability of 62% at the beginning of February on a reduction in the cost of money from the month of March.
CHANGES
The dollar fell (-0.18%) against a basket of reference currencies before the publication of numerous macroeconomic indicators expected during the week.
The euro is trading at $1.0853 (+0.32%) and the pound sterling is stable at $1.2679.
OIL
Oil prices are driven by the prospect of a tightening supply and the risk of disruptions in maritime transport after new US and British strikes over the weekend against targets linked to Yemen’s Houthis.
Brent rose 0.69% to $82.18 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.97% to $77.23.
(Written by Claude Chendjou, edited by Sophie Louet)
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