PARIS (Reuters) – European markets ended higher on Monday, a burst of indicators having reassured investors about the trajectory of the European economy.

In Paris, the CAC 40 gained 0.49% to 7,996.64 points, while the German Dax advanced 0.95%. The British Footsie was closed on Monday.

The EuroStoxx 50 index ended the session with an advance of 0.7%, compared to 0.47% for the FTSEurofirst 300 and 0.52% for the Stoxx 600.

European markets have welcomed the latest activity indicators in the euro zone, which suggest that the recovery of the monetary bloc is proving more dynamic than expected.

The PMI indicators show that activity continues to expand, while the Sentix index showed the optimism of investors in the euro zone, although the judgment on the current situation remains poor.

Producer prices, also released on Monday, showed that price pressures continued to decline in line with investors’ expectations, an encouraging development as disinflation is much slower in the United States.

The next few days will be data poor.

“After a busy week last week, the market will have a lot to digest. We are now past the uncertainty from the Fed, the jobs report and earnings, all of which were positive for stocks last week,” remind BofA strategists.

“Historically, the stock market has favored quiet macroeconomic weeks,” adds the bank, which calculates that the S&P 500 rose 0.6% in weeks without the release of leading macroeconomic data since 2014, compared to a rise median of 0.2%.

The Bank of England (BoE) meeting will be the main economic event of the week, with the FTSE at its highest and the pound strengthening against the dollar since mid-April, with markets betting that the institution will maintain its rates at restrictive levels for longer than expected.

“The BoE meeting will be closely watched this week; we believe it will pave the way for a rate cut in June, as the recovery in activity is accompanied by an easing of price pressures,” write Barclays strategists.

A WALL STREET

Wall Street is on the rise as traders digest the latest data.

At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.12% for the Dow Jones, compared to 0.6% for the Standard & Poor’s 500, and 0.66% for the Nasdaq Composite.

VALUES

Atos announced on Monday that it had received four proposals from different investors as part of its restructuring procedure, and gave up 4.42%.

Teleperformance leads the CAC 40 and recorded an increase of 4.98% after encouraging comments from analysts, with Stiefel particularly welcoming the group’s latest results.

Maurel et Prom rose 7.32% after receiving an OFAC license from the US Department of the Treasury for its operations in Venezuela.

Eutelsat Communications confirmed on Monday that it was studying partnership possibilities with infrastructure investors for its terrestrial network, and fell 3.83%.

Carmat jumped 9.77% after reiterating its confidence in its 2024 outlook and saying it was “optimistic” about the results of a clinical study.

Ferrovial gained 2.22% after the construction group said on Friday it expected to be listed on the Nasdaq in early May.

Indra, a defense technology group, increased by 8.33% after reporting a 40% increase in its profit in the first quarter.

The cosmetics group Puig gained 3.1% during its second day of trading, the price having not changed on the day of its IPO on Friday.

Grifols gained 6.91% after announcing that it had completed all the procedures necessary for the sale of its 20% stake in Shanghai RAAS to Haier.

PostNL reported a loss for its normalized earnings before interest and taxes for the first quarter on Monday, losing 3.87%.

RATE

The latest indicators have pushed European yields lower, while rates are rising slightly in the United States in the absence of catalysts.

At the close of the rate markets in Europe, the yield on the ten-year Treasury rose 1 bp to 4.5098%, compared to 1.6 bp for the two-year rate, to 4.8221%.

The German ten-year yield fell 3.5 bps to 2.475%, while the two-year yield fell 2.1 bps to 2.914%.

CHANGES

The dollar is stable after the latest indicators, while the pound strengthens ahead of the next BoE monetary policy meeting.

The dollar is stable against a basket of reference currencies, while the euro gains 0.16% to 1.0775 dollars. The pound sterling strengthened by 0.21% to $1.257.

OIL

Crude prices are rising as Saudi Arabia raised its oil prices for June and the Israeli army prepares to attack the town of Rafah in the Gaza Strip.

Brent strengthened by 0.58% to $83.44 per barrel, American light crude (West Texas Intermediate, WTI) increased by 0.63% to $78.6.

TO BE CONTINUED ON TUESDAY:

(Written by Corentin Chappron, edited by Sophie Louet)

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