by Pauline Foret

(Reuters) – Wall Street is expected to open hesitantly on Monday, while European stock markets are up mid-session, as markets prepare for a week marked by a few economic indicators and the Jackson Hole symposium at the end of the week. New York index futures point to a directionless opening on Wall Street. Futures indicate a 0.06 percent increase for the Dow Jones Industrial Average, but a 0.03 percent decrease for the Standard & Poor’s 500 and a 0.14 percent decrease for the Nasdaq. In Paris, the CAC 40 is up 0.23 percent at 7,467.19 points at around 0940 GMT. In Frankfurt, the Dax is up 0.04 percent and in London, the FTSE is down 0.14 percent.

The pan-European FTSEurofirst 300 index gained 0.13%, the Eurozone’s EuroStoxx 50 gained 0.25% and the Stoxx 600 gained 0.15%.

European stocks were slightly lower in early trading on Monday, hit in particular by a fall in defence stocks following reports that Berlin plans to limit military aid to Ukraine due to budgetary constraints.

On Wall Street, Federal Reserve members Mary Daly and Austan Goolsbee used the weekend to discuss the possibility of monetary easing in September, as investors eagerly await the outcome of the Jackson Hole symposium, which brings together central bankers from around the world.

“It’s all going to come down to Friday. We’ll be watching for any signs that rate cuts are being discussed. The next question is how big those rate cuts will be,” said Paul O’Neill, chief investment officer at wealth management firm Bentley Reid.

On Thursday, investors will also be waiting for the release of PMIs from France, Germany, Britain and the eurozone, as well as U.S. PMIs and preliminary U.S. jobless claims figures. STOCKS TO FOLLOW ON WALL STREET

Estée Lauder is expected to report fourth-quarter results later today.

VALUES IN EUROPE

European defense stocks fell as Berlin said it would cut military aid to Ukraine due to budget cuts. Rheinmettal, BAE Systems, Saab, Thales, Leonardo and Dassault Aviation fell by 1.6% to 6%.

Varta loses 80% after reaching restructuring agreement with creditors.

Nexans lost 3.7% after Goldman Sachs lowered its recommendation to “neutral” from “buy”.

Bavarian Nordic lost 4.8% after announcing it was increasing production of its MPOX vaccine.

RATE

Yields continued to fall on Monday as investors braced for a possible Fed rate cut in September.

The 10-year Treasury yield fell 2.8 basis points to 3.8635%, while the two-year yield eroded 2.3 basis points to 4.0408%.

The yield on the ten-year German Bund declined 4.0 basis points to 2.2180%, while the two-year yield lost 4.3 basis points to 2.4080%.

CHANGES

Currency markets are positioning for the Jackson Hole symposium as accommodative monetary policy statements put pressure on the dollar.

The dollar lost 0.29% against a basket of benchmark currencies. The euro gained 0.07% to $1.1037, hitting a one-year high on the session. Sterling also gained 0.14% against the dollar and 0.20% against the euro, as the country’s latest indicators signaled some economic resilience.

OIL

Oil prices fell on Monday as fears of weaker demand in China, the world’s largest oil importer, weighed on market sentiment. Investors were also focused on progress in Middle East ceasefire negotiations, which could reduce supply risks.

Brent lost 0.51% to $79.27 per barrel, while American light crude (West Texas Intermediate, WTI) fell 0.69% to $76.12 per barrel.

MORE MAJOR INDICATORS EXPECTED TODAY

(Written by Pauline Foret, edited by Kate Entringer)

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