by Claude Chendjou
PARIS (Reuters) – The main European stock markets are expected to rise on Monday, continuing the momentum of last weekend after the publication of a report on employment in the United States considered encouraging, which could encourage the Federal Reserve American (Fed) to lower its rates this year.
Trading is expected to be reduced with the London and Tokyo stock exchanges closed for a public holiday. Most places in Europe, however, will be open on Wednesday, the anniversary of the armistice of May 8, 1945, and Thursday, the Christian feast of the Ascension.
According to the first available indications, the Parisian CAC 40 should gain around 0.20% at opening. The Dax in Frankfurt could advance by 0.21%. The EuroStoxx 50 index is expected to increase by 0.22%.
Investors will learn shortly before 08:00 GMT the final figures for services activity in April in the main countries of the euro zone and an inflation indicator in the monetary bloc.
The rest of the week will be marked by announcements from the Bank of England (Thursday), the Reserve Bank of Australia (Tuesday) and the Riksbank (Wednesday) while the publication of the American consumer confidence index ( Friday) should reinforce the “Goldilocks” scenario of resilient economic growth and a fall in consumer prices in the United States. The corporate results season also continues.
A WALL STREET
The New York Stock Exchange ended up on Friday against a backdrop of optimism about the Fed’s rate outlook, the latest employment figures having been weaker than expected.
The Dow Jones index gained 1.18%, or 450.02 points, to 38,675.68 points.
The broader Standard & Poor’s 500 gained 63.59 points, or 1.26% to 5,127.79 points.
The Nasdaq Composite advanced 315.37 points (1.99%) to 16,156.328.
The monthly employment report, released Friday by the Labor Department, showed that job creation was weaker than expected in April, while unemployment rose and the pace of wage growth slowed.
Operators now estimate that the Fed will lower its rates twice this year, although the persistence of inflation and market tensions had ruled out this possibility.
“This report is neither too positive nor too negative, which is exactly what the Fed wants to see,” explains Peter Cardillo, economist at Spartan Capital Securities in New York.
In terms of values, Apple rose 6% after better-than-expected quarterly results and the announcement of a record share purchase plan.
Expedia fell 15.3% after lowering its growth forecast for the year.
IN ASIA
The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) gained 0.5%.
In China, where trading resumed this Monday after a break since last Wednesday due to Labor Day, the Shanghai SSE Composite rose 0.98% and the CSI 300 rose 1.42%.
On the indicator side, growth in activity in the services sector in China slowed in April due to a rise in prices but new orders accelerated and management confidence increased, reinforcing hopes of a sustainable recovery of the economy, shows the Caixin/S&P Global survey published Monday.
EXCHANGES/RATES
The dollar is practically stable (+0.01%) against a basket of reference currencies after hitting a low of around three weeks at 105.16 points on Friday.
The euro gained 0.02%, to $1.076, while the pound sterling traded at $1.2541 (-0.02%).
The Australian dollar is trading at 0.66105 US dollars (-0.01%) on the eve of the RBA’s decisions, which should leave its main key rate unchanged at 4.35%.
The yield on ten-year US Treasury bonds is stable at 4.4975%, after a decline of 6.9 points on Friday following the publication of the US employment report.
OIL
Oil prices are rising on Monday as Saudi Arabia raised crude prices for June in most of its markets, while the prospect of a ceasefire agreement in the Gaza Strip appears slim as negotiations continue. being completed on Sunday with a failure even if they could resume on Tuesday.
Brent rose 0.46% to $83.34 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.49% to $78.49.
(Written by Claude Chendjou)
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