by Claude Chendjou

PARIS (Reuters) – Wall Street is expected to rise slightly on Monday and European stock markets are showing slight variations at mid-session while investors are attentive to inflation figures in the monetary bloc and the decisions of the American Federal Reserve (Fed).

The positive trend in Europe is fueled by basic resources (+0.93%), while the banking sector (-0.31%) weighs.

Futures on New York indices signal an opening on Wall Street up 0.14% for the Dow Jones, 0.21% for the Standard & Poor’s 500 and 0.34% for the Nasdaq, in line with the gains recorded on Friday after the outlook considered reassuring by American technology giants.

In Paris, the CAC 40 gained 0.06% to 8,093.24 points around 11:05 GMT. In Frankfurt, the Dax nibbles 0.02% and in London, the FTSE advances 0.52%. In Spain, the IBEX index dropped 0.68% while the president of the government, Pedro Sanchez, announced Monday that he remained in his post, after having raised the threat of resignation due to an open investigation against his wife.

The pan-European FTSEurofirst 300 index gained 0.27%, while the eurozone’s EuroStoxx 50 fell 0.21%. The Stoxx 600 gained 0.25%.

Pending the publication at 12:00 GMT of price dynamics figures in Germany, preliminary data show an acceleration of inflation in four of the 16 German Länder in April. Monthly inflation for the entire euro zone will be published on Tuesday.

In the United States, the Fed begins a two-day meeting on Tuesday which should lead to a new status quo on its key rates while the hope of easing is now postponed until September at best.

Money markets are currently counting on a reduction of around 36 basis points in Fed rates by the end of 2024 compared to an expectation of a reduction of around 150 points at the start of the year.

VALUES TO FOLLOW AT WALL STREET

Tesla gains nearly 6% before the stock market, the American automobile group having overcome regulatory obstacles which prevented it from deploying its FSD autonomous driving software in China.

Apple, which gained 1.3% in pre-market trading, has resumed discussions with OpenAI, the creator of ChatGPT, on the use of its generative artificial intelligence technology for new features on the iPhone, according to the agency Bloomberg.

VALUES IN EUROPE

In Paris, Atos climbed 20.54% after saying it welcomed “with satisfaction” the interest of the French State in its strategic activities.

In Amsterdam, Philips soared 42.72% after a $1.1 billion settlement in the United States in the respirator case.

In Frankfurt, Deutsche Bank fell 6.69%, the group having announced on Sunday that it had been forced to make provisions which could weigh on its profitability in the context of a dispute over the takeover of Postbank.

In London, Anglo American takes 2.11% as the group probes BHP shareholders about a more generous buyout offer, according to sources familiar with the matter.

RATE

Sovereign yields in the euro zone fell after inflation figures in Spain and Germany were generally in line with expectations. The ten-year German Bund rate fell 5.5 basis points, to 2.525%, whereas it had reached 2.647% on Thursday, the highest since the end of November.

The yield on ten-year US Treasury bonds fell 4.5 points to 4.6301%, with the easing in bonds continuing to benefit from the publication of an online PCE inflation indicator on Friday. with economists’ estimates.

CHANGES

The dollar fell by 0.28% against a basket of reference currencies, including the euro which advanced by 0.22%, to 1.0715 dollars, and the pound sterling which traded at 1.2527 dollars (+ 0.30%).

The Japanese currency is trading at 155.88 yen per dollar against the dollar after falling to 160.24, its lowest level since 1990. Operators are talking about intervention by the Japanese authorities.

OIL

Oil prices were little changed on Monday, as peace talks in Cairo between Israel and Hamas in Cairo eased fears of a worsening conflict in the Middle East.

Brent fell by 0.57% to $88.99 per barrel and American light crude (West Texas Intermediate, WTI) by 0.24% to $83.65.

(Writing by Claude Chendjou, edited by Kate Entringer)

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