by Augustin Turpin

(Reuters) – Wall Street is expected to open higher on Monday, ahead of a highly anticipated Nvidia conference on artificial intelligence (AI) and the Federal Reserve’s meeting later in the week, while European stock markets advance mid-session with the rise in oil values.

New York index futures signal Wall Street opening up 0.15% for the Dow Jones, 0.71% for the Standard & Poor’s-500 and 1.12% for the Nasdaq.

Nvidia, the American semiconductor giant, kicks off its annual developers conference (GTC) this Monday, an unmissable event in the sector which will be closely followed by investors as the theme of AI has carried the stock market indices in recent months.

In Paris, the CAC 40 rose 0.16% to 8,177.56, around 11:55 GMT, still close to last week’s records. In Frankfurt, the Dax increased by 0.26% and in London, the FTSE gained 0.27%.

The pan-European FTSEurofirst 300 index gained 0.05%, the EuroStoxx 50 in the euro zone gained 0.26% and the Stoxx 600 gained 0.07%.

The optimism at the start of the week nevertheless remains cautious ahead of the meetings planned in the coming days of the central banks of Japan, the United States, the United Kingdom, Switzerland and Norway, which will give further indications on the trajectory of rates.

In the United States, the resilience of the economy and the surprise rise in consumer prices (CPI) and producer prices (PPI) have revived fears of a resumption of inflation, undermining the scenario of a rate cut in the spring.

Goldman Sachs indicated on Monday that it now anticipates a rate cut in the United States of only 75 points this year compared to 100 points previously, while JP Morgan reduced its forecast in this area from 125 points to 75 points.

For its part, the Bank of Japan (BoJ) is expected to end eight years of negative interest rates and other measures linked to its ultra-accommodative monetary policy on Tuesday, which would constitute a historic change of course for the central bank in its fight against deflation.

VALUES IN EUROPE

The oil and gas sector index leads the gains with a jump of 0.55%, on the heels of rising crude oil prices, after data in China on industrial production and retail sales exceeded expectations. The basic resources index takes 0.37%.

In terms of values, Alstom soared 9.34% after a purchase recommendation from Deutsche Bank while the Dutch Signify gained 3.12%, driven for its part by an opinion from Barclays.

RATE

Bond yields in the euro zone are moving shortly after the increase recorded last week following the latest American economic data.

The German ten-year yield gained almost two basis points (bp) to 2.453% and that of the two-year rate was stable at 2.9115%.

Same sluggishness on the side of the American bond markets: the yield on ten-year Treasuries is almost unchanged at 4.2984% and that on two years stands at 4.7107%.

CHANGES

The dollar is in slight decline (-0.09%) against a basket of reference currencies, in a context of wait-and-see attitude among operators before central bank meetings this week. The euro gained 0.14% to 1.0902 dollars.

OIL

Oil prices are rising, following last week’s gains following Ukraine’s attacks on Russian oil infrastructure.

Brent rose 0.47% to $85.74 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.56% to $81.49.

(Written by Augustin Turpin, edited by Blandine Hénault)

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