by Bertrand De Meyer

PARIS (Reuters) – The main European stock markets are expected to see slight variations at the opening on Monday, with investors exercising caution with the American election at the start of the week and the monetary policy decision a little later from the Federal Reserve (Fed).

According to the first available indications, the Parisian CAC 40 could lose 0.05% at the opening.

Futures contracts signal a rise of 0.15% for the Dax in Frankfurt, a fall of 0.15% for the FTSE in London and 0.06% for the Stoxx 600.

European stock markets are looking across the Atlantic. Investors are awaiting the results of the American election this week, while it is still impossible to decide between the two candidates in the polls, and the monetary policy decision of the Fed which should once again reduce its rates, order of 25 basis points depending on the markets.

The day will, however, be marked on the Old Continent by the publication of the final manufacturing PMIs for France, Germany and the United Kingdom.

The results season is slowly resuming, for example with the publication of Ryanair’s second quarter, before accelerating on Tuesday.

A WALL STREET

The New York Stock Exchange rebounded on Friday, reassured by the results of the online commerce giant Amazon and by a stable unemployment rate in October in the United States, despite job creations well below estimates due to the impact strikes and hurricanes.

The Dow Jones index gained 0.69%, or 288.73 points, to 42,052.19 points.

The broader Standard & Poor’s 500 gained 23.35 points, or 0.41% to 5,728.80 points.

The Nasdaq Composite advanced 144.77 points, or 0.80%, to 18,239.917 points.

IN ASIA

Asian markets are moving higher on Monday before the American election, with the Tokyo Stock Exchange closed.

In China, the composite index of the Shanghai Stock Exchange increased by 1.07% and the CSI 300 of large capitalizations advanced by 1.3%.

The Hong Kong Stock Exchange rose by 0.29%.

RATE

US bond yields are trending upwards on Monday after US employment figures released on Friday.

The yield on the ten-year Treasury rose 2.3 basis points to 4.3857% while the yield on the two-year security increased by 0.9 basis point to 4.2116%.

In Europe, the yield on the German ten-year fell by 2.2 basis points to 2.385%, that of the two-year lost 0.1 basis point to 2.272%.

CHANGES

The dollar retreats on Monday as investors exercise caution ahead of the U.S. election and the Fed’s monetary policy decision later in the week.

The dollar fell by 0.47% against a basket of reference currencies, the euro rose by 0.52% to $1.089 and the pound sterling by 0.46% to $1.2986.

In Asia, the yen lost 0.51% to 152.2 yen per dollar, the Australian dollar rose 0.56% to 0.6596 dollars.

OIL

Barrel prices increased on Monday, with OPEC+ having decided to postpone its production increase plans by one month.

Brent rose 1.82% to $74.43 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.99% to $70.85.

(Written by Bertrand De Meyer, edited by Blandine Hénault)

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