by Augustin Turpin

(Reuters) – Wall Street is expected to open modestly higher on Monday and European stock markets are trading in mixed order at mid-session, as caution remains in place ahead of a week that will be packed with key U.S. economic data. New York index futures point to a flat opening on Wall Street (0%) for the Dow Jones, up 0.14% for the Standard & Poor’s-500 and 0.21% for the Nasdaq.

In Paris, the CAC 40 lost 0.08% to 7,264.23 at around 10:50 GMT. In Frankfurt, the Dax gained 0.12% and in London, the FTSE gained 0.49%.

The pan-European FTSEurofirst 300 index is down 0.06%, the eurozone’s EuroStoxx 50 is down 0.06% and the Stoxx 600 is down 0.09%.

The fossil fuel sector segment rose 0.7%, in the wake of oil prices rising for the fifth consecutive session, against a backdrop of tensions in the Middle East.

Financial stocks also gained 0.7%, driven by a jump of almost 5% in the shares of German reinsurer Hannover Re after its first-half results.

Investors will get plenty of data on U.S. activity this week, as fears of a recession across the Atlantic remain and sent markets plummeting last week.

Producer prices on Tuesday, retail sales, industrial production and the Philly Fed and Empire State activity indicators on Thursday, and finally the University of Michigan sentiment indicator will be released during the week.

Market attention will nevertheless be focused on the CPI inflation indicator, expected on Wednesday and essential to the trajectory of American monetary policy.

The Federal Reserve will meet in late August for the Jackson Hole symposium, and will rely on these data in its assessment of activity.

Traders are certain that the central bank will lower rates in September, estimating a 50 basis point cut as 50% likely. Any change in this scenario could cause less liquid markets to react violently during the summer, already worried about the slowdown in US employment.

VALUES TO FOLLOW ON WALL STREET

VALUES IN EUROPE

Eutelsat gained 2.2% after announcing on Friday that it was in exclusive negotiations for the partial sale of its passive ground segment infrastructure.

BT Group rose 6.3% after Indian company Bharti Enterprises agreed to buy a 24.5% stake from the British telecoms operator’s main shareholder, billionaire Patrick Drahi, whose Altice group is struggling with heavy debts.

JD Sports drops 4.3% after Deutsche Bank downgrades its recommendation.

RATE

Eurozone bond yields are gaining a few points in a context of wait-and-see attitude on rates.

The yield on the ten-year German Bund rose 2.6 basis points (bps) to 2.2490%, while the two-year Bund gained 3.0 bps to 2.4110%.

The ten-year US Treasury yield changed little and gained 1.1 basis points to 3.9532%.

CHANGES

The dollar advanced slightly (0.06%) against a basket of reference currencies, while the euro lost 0.07% to 1.0924 dollars.

OIL

Oil is up slightly as geopolitical tensions continue to support prices.

Brent gained 0.89% to $80.37 per barrel, with US light crude (West Texas Intermediate, WTI) rising 1.13% to $77.71 CLc1.

(Written by Augustin Turpin, edited by Kate Entringer)

Copyright © 2024 Thomson Reuters