PARIS (Reuters) – European stock markets are expected to be directionless at the opening on Monday, after encouraging comments from the Bank of Japan (BOJ) and positive Chinese indicators, but before the publication of inflation indicators at the end of the week crucial.
Futures suggest a directionless open for the Paris CAC 40, the Dax in Frankfurt and the EuroStoxx 50.
British markets will be closed on Monday for a public holiday.
In Japan, the governor of the central bank, Kazuo Ueda, reaffirmed Monday during a seminar that the Bank of Japan had “made progress on inflation by moving away from zero price dynamics and by raising inflation expectations.
One of the members of the central bank’s monetary policy committee, Shinichi Uchida, stressed that the end of the fight against disinflation “is in sight”.
In China, industrial profits returned to positive territory in April, up 4.3% between January and April compared to the same period a year ago. On a month-on-month basis, profits rose 4.0% in April, compared to a decline of 3.5% in March, an indication that the government’s support measures are starting to work.
However, Western investors are only concerned about one thing: the American and euro zone inflation indicators expected on Friday.
In the United States, markets will be looking to see if the decline observed in CPI inflation will be reflected in the PCE indicator, preferred by the Federal Reserve to gauge price dynamics.
In the euro zone, Friday’s figure will be the last published before the next meeting of the European Central Bank, which is expected to lower its rates on this occasion – barring any surprises on the indicator.
Japanese inflation is also expected on May 31.
AT WALL STREET
The New York Stock Exchange rebounded on Friday before a long weekend due to a public holiday on Monday in the United States, allowing the S&P-500 and the Nasdaq to record a fifth consecutive weekly gain.
The Dow Jones index, which suffered its biggest percentage decline in more than a year on Thursday, gained 0.01%, or 4.33 points, to 39,069.59 points. The broader S&P-500 gained 36.88 points, or 0.70%, to 5,304.72 points. The Nasdaq Composite advanced 184.76 points (1.10%) to 16,920.79 points, a closing record.
Nvidia gained another 2.57% after jumping more than 9% the day before following its forecasts inflated by prospects linked to artificial intelligence.
IN ASIA
The Tokyo Stock Exchange posted a modest rise despite encouraging comments from the BOJ, with markets showing caution ahead of this week’s publication of inflation indicators in the Eurozone, the United States and Japan. The Nikkei index gained 0.66% to 38,900.02 points and the broader Topix gained 0.84% ​​to 2,765.57 points.
Semiconductor groups are progressing in the wake of Nvidia’s figures. Chip test equipment maker Advantest gained 1.4%.
Chinese indices are progressing, supported by good industrial profits figures. The Hong Kong Hang Seng index 0.78%, the Shanghai SSE Composite takes 0.6%, the CSI 300 0.5%.
RATE
The Japanese 10-year yield hits a twelve-year high after comments from the BOJ, which suggest the central bank will continue to raise rates.
The Japanese ten-year yield rises 1 bp to 1.026%
The German ten-year yield eroded by 1.3 bp to 2.57%, while that of the two-year rate was stable at 3.083%.
CHANGES
The yen strengthens after comments from the Bank of Japan, with foreign exchange markets otherwise calm.
In Asia, the yen strengthened by 0.11% to 156.81 yen per dollar, the Australian dollar gained 0.05% to 0.663 dollars.
The dollar is unchanged against a basket of reference currencies, while the euro remains at $1.0843 and the pound sterling at $1.2735.
OIL
Crude is up modestly as the next OPEC meeting looms on June 2, during which member countries could choose to maintain production at its current level for the rest of the year.
Brent nibbles 0.3% to 82.37 dollars per barrel, American light crude (West Texas Intermediate, WTI) rising 0.4% to 78.03 dollars.
(Written by Corentin Chappron, edited by Kate Entringer)
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