PARIS (Reuters) – European markets ended a session scattered without major events, while several important meetings this week call for caution.
In Paris, the CAC 40 nibbled 0.28% to 7,956.41 points, while the German Dax fell 0.11% and the British Footsie fell 0.55%.
The EuroStoxx 50 index ended the session up 0.34%, compared to a directionless close for the FTSEurofirst 300 and the Stoxx 600.
Investor sentiment in the euro zone, a second-order indicator released on Monday, showed that morale improved a little more than expected in March. In the euro zone, the European Central Bank meeting on Thursday will be the main meeting of the week.
“We understand that the ECB wants to obtain evidence that inflation is indeed on a downward trajectory leading towards its objective of 2% before reducing its key rates”, a trajectory which depends in particular on productivity and the unemployment rate, explains Patrick Barbe, head of investment grade bond investing in Europe at Neuberger Berman.
“These two economic variables will be decisive in confirming that the current decline, faster than expected, in the inflation rate will be sustainable, which can be verified by the end of April.”
Until then, the ECB could refrain from changing its monetary policy, although its message could evolve.
The American central bank could also clarify its vision of the domestic economy this week, its president, Jerome Powell, having to speak to the legislative bodies on Wednesday and Thursday.
A burst of employment indicators on Wednesday and Friday will allow investors to measure the resistance of the American economy to rate increases.
VALUES
BNP Paribas advanced 1.99% after announcing the launch of its share buyback program for 2024.
Ferrari fell 2.88% after Citigroup lowered its recommendation from “neutral” to “sell”, citing a slowdown in expected growth in 2024 for the Italian luxury car maker.
Atenor dropped 6.77% after the Belgian real estate developer announced a larger-than-expected net loss in 2023.
Music investor Hipgnosis Songs Fund fell 8.24% to a record low after announcing it would no longer pay dividends for the “foreseeable future.”
Softwareone lost 1.75% after its founding shareholders abandoned the buyout agreement with Bain Capital.
A WALL STREET
Wall Street is hesitant before many catalysts this week.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.21% for the Dow Jones, compared to 0.25% for the Nasdaq Composite and a directionless S&P 500.
RATE
Yields are rising in the United States ahead of numerous events likely to increase market volatility.
At the close of the interest rate markets in Europe, the ten-year Treasury yield increased by 4.3 bp to 4.2248%, compared to 06 bp for the two-year rate, to 4.5934%.
The German ten-year yield fell 1.7 bps to 2.397%.
CHANGES
The pound and the euro are strengthening against the greenback, before Jerome Powell’s interventions and the publication of indicators this week.
The dollar lost 0.07% against a basket of reference currencies, while the euro gained 0.21% to 1.086 dollars. The pound sterling rose 0.36% to $1.2695.
OIL
Crude is eroding after an OPEC+ decision on Sunday, which came as no surprise to the markets.
Brent fell by 0.51% to $83.12 per barrel, American light crude (West Texas Intermediate, WTI) decreased by 0.95% to $79.21.
(Written by Corentin Chappron, edited by Sophie Louet)
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