by Claude Chendjou
PARIS (Reuters) – European stock markets ended slightly lower on Monday in a consolidation movement after last week’s records, while Wall Street was on a cautious note mid-session on the eve of the publication of an indicator inflation in the United States.
In Paris, the CAC 40 ended down 0.12% at 8,209.28 points after recording an absolute high at 8,259.19 points during the session on Friday. The British Footsie lost 0.22% and the German Dax 0.18%.
The EuroStoxx 50 index fell by 0.14% and the FTSEurofirst 300 by 0.05%. The Stoxx 600, which also hit a record on Friday at 8,455.77 points, lost 0.03% at the close on Monday.
At the close in Europe, the Dow Jones fell by 0.01%, but the Standard & Poor’s 500 gained 0.005%, while the Nasdaq advanced by 0.27%, the three indices remaining near their historical highs reached in March.
They are benefiting from better-than-expected quarterly corporate results and signs of a slowing labor market that have fueled bets on one or two rate cuts from the US Federal Reserve (Fed) this year. A new Reuters survey of economists shows the Fed is expected to cut borrowing costs in September.
The publications respectively on Tuesday and Wednesday of the monthly indicators of producer prices (PPI) and consumer prices (CPI) in the United States, as well as the speech on Tuesday by Jerome Powell, the president of the Fed, should reinforce this hope at risk to disappoint.
In Europe, trading was hesitant as Germany will publish the final inflation figures for the month of April on Tuesday before those of the entire euro zone on Friday.
The solidity of the European automobile compartment (+1.42%) contrasted with that of construction and materials (-0.94%) while the gross domestic product (GDP) for the first quarter in the region will be published on Wednesday. euro.
VALUES
Sanofi gained 2.36% after Monday’s announcement of an additional investment of 1.1 billion euros in the production of drugs in France.
AP Moeller-Maersk jumped 7.71%, boosted by a rise in freight rates amid rising trade volumes and the Red Sea crisis.
Ceconomy gained 6.19% thanks to the publication by the German consumer electronics group of an annual profit forecast above expectations.
CHANGES
The dollar fell slightly (-0.13%) against a basket of reference currencies, after posting its first weekly gain last week in three weeks.
The euro advanced 0.21% to $1.0792 and the pound sterling rose 0.25% to $1.2555.
RATE
Sovereign yields in the Eurozone are falling slightly, with investors currently anticipating a cut in ECB interest rates of around 70 basis points this year. The ten-year German Bund yield ended at 2.51%, down 1.2 basis points.
In the United States, the yield on ten-year Treasury bonds lost around two points, to 4.4845%.
OIL
Oil prices are volatile, with the market divided between fears about weak demand for crude and tensions in the Middle East.
Around 4:00 p.m. GMT, Brent rose 0.37% to $83.10 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.64% to $78.76.
(Written by Claude Chendjou, edited by Sophie Louet)
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