by Claude Chendjou
PARIS (Reuters) – European stock markets ended higher on Monday and Wall Street was also in the green at mid-session, with the appetite for risk returning to the markets in a context of easing geopolitical fears in the Middle East .
In Paris, the CAC 40 ended with a gain of 0.22% to 8,040.36 points. The British Footsie, rich in raw materials, rebounded more sharply, by 1.62%. The German Dax advanced 0.64%.
The EuroStoxx 50 index increased by 0.38% and the FTSEurofirst 300 by 0.6%. The Stoxx 600, which recorded its third consecutive weekly decline on Friday, rose again by 0.60%.
The rebound in Europe was led by cyclical stocks, notably in the banking sector (+1.17%), that of energy (+1.2%), as well as that of the consumption of personal goods and the house (+0.46%).
At the close in Europe, the Dow Jones advanced by 0.39%, the Standard & Poor’s 500 by 0.51% and the Nasdaq by 0.58%.
Nvidia, which lost 10% on Friday due to questions about the evolution of key rates and profit-taking in artificial intelligence, rebounded by 3.2% on Monday. Other mega-caps that suffered last week, such as Apple, Amazon and Alphabet, are up 0.4% to 1.4%, despite UBS’s warning that the profits of the six big US technology companies could collapse at over the next few quarters.
According to LSEG data, a total of 158 S&P 500 companies and 173 Stoxx 600 companies are scheduled to report quarterly results this week.
On the macroeconomic level, the market awaits the American gross domestic product (GDP) figures for the first quarter on Thursday and the publication of the PCE inflation index and consumer spending for the month of March in the United States on Friday.
VALUES IN EUROPE
Alstom advanced 2.25% after the group announced on Friday the sale of its conventional signaling activities in North America to the German railway systems manufacturer Knorr-Bremse (+4.26%) for around 630 million euros. euros.
Icade ended with a gain of 1.89% after publishing a turnover up 12.3% in the first quarter.
Galp Energia soared 20.64%. The Portuguese oil group has announced that its Mopane field off the coast of Namibia could contain at least 10 billion barrels of oil.
Iveco fell 2.18%, the Italian car manufacturer having announced the departure of its managing director Gerrit Marx to the American group CNH Industrial.
CHANGES
The dollar remains firm (+0.07%) against a basket of reference currencies, including the euro which is trading at 1.0647 dollars (-0.07%) and the pound sterling at 1.2342 dollars (- 0.23%).
RATE The yield on the ten-year German Bund, benchmark for the euro zone, ended down 1.4 basis points, at 2.486%, returning from a five-month peak. The two-year one lost 3.6 basis points, to 2.965%.
A Reuters survey shows that an ECB rate cut is still expected in June.
In the United States, the yield on ten-year Treasury bonds is stable at 4.6147%.
OIL
The oil market fell on Monday while last week there were fears of a conflagration in the Middle East after explosions reported in Iran, suggesting retaliation by Israel towards Tehran.
Brent fell by 0.14% to $87.17 per barrel and American light crude (West Texas Intermediate, WTI) by 0.25% to $83.35.
(Written by Claude Chendjou, edited by Zhifan Liu)
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