by Diana Mandia
(Reuters) – Wall Street is expected to rise and European stock markets are progressing mid-session on Monday, the latter rebounding after having declined following Donald Trump’s victory in the US presidential election last week, and while the Investors are awaiting the release of inflation data in Germany and the United States in the coming days.
New York index futures signal Wall Street opening up 0.45% for the Dow Jones, 0.34% for the Standard & Poor’s-500 and 0.32% for the Nasdaq. In Paris, the CAC 40 gained 1.16% to 7,424.10 points around 12:13 GMT. In Frankfurt, the Dax advances by 1.34% and in London, the FTSE 100 gains 0.75%.
The EuroStoxx 50 index is up 1.18%, the FTSEurofirst 300 is up 1.12% and the Stoxx 600 is up 1.16%.
European markets, which fell last week, rebound on Monday as they continue to digest the upcoming return of former President Donald Trump to the White House and await the publication of German inflation figures on Tuesday and American inflation on Wednesday. to assess the chances of rate cuts on both sides of the Atlantic.
In the United States, the markets will evaluate whether the president-elect implements his campaign promises, which could revive a rise in prices, in particular due to an increase in customs duties as promised by the Republican.
In Europe, where the STOXX 600 has experienced three consecutive weekly declines, weighed down by fears of possible American customs duties and insufficient measures taken by China to stimulate its economy, the evolution of the political situation of its leading power, Germany, is expected to remain an issue closely watched by investors.
The collapse of the government coalition of Chancellor Olaf Scholz, who indicated on Sunday that he was ready to submit to a vote of confidence before Christmas, could prove problematic in the coming months, particularly if Donald Trump begins to put in place measures tariffs targeting Europe.
“With potentially weaker growth prospects due to increased tariff risks, as well as geopolitical uncertainty, this stance looks set to continue for longer, despite further ECB cuts in the pipeline “, wrote JP Morgan analysts on Monday on the impact of Trump’s victory on the European market.
The day also takes place in the absence of a major catalyst, November 11 being a public holiday in several European countries, including France.
VALUES TO FOLLOW AT WALL STREET
Investors continue to digest the consequences of Donald Trump’s return to the White House as the billionaire’s victory in the US presidential election sparked a rally in the dollar, cryptocurrencies and US stocks last week.
The TESLA share, whose market capitalization closed on Friday above the symbolic mark of 1,000 billion dollars, boosted by the election of Donald Trump, will once again be closely watched.
VALUES IN EUROPE
In terms of values, Continental gained 8.1% after reporting on Monday a quarterly operating profit higher than expectations. Shares of defense companies continue to benefit from bets that Europe will increase its security spending after the election of Donald Trump. The Swedish group SAAB, the Italian Leonardo and the British Rolls-Royce progressed from 2.8% to 3.5%.
The utility providers sector is also highly sought after (1.38%) after last week’s decline linked to fears of unfavorable policies under the Trump administration. Shares in the renewable energy sector are advancing, including EDPR (2.3%) and Orsted (2.8%), as is the construction sector (2%), with Saint-Gobain increasing by 3.9%.
Reinsurance company Swiss Re gains 4% after UBS raises its recommendation on the value from “sell” to “buy”.
RATE
Yields in Europe are declining with uncertainties surrounding Donald Trump’s upcoming second term in the United States and the collapse of Germany’s coalition government last week.
The ten-year German Bund yield fell 1.3 basis points to 2.3530%. That of its two-year counterpart lost 1.6 basis points to 2.1710%.
In the United States, the interest rate markets are closed on the occasion of “Veteran Day”.
CHANGES
The dollar advances on Monday and remains near the four-month high reached last week after Donald Trump’s victory, as traders prepare for US inflation figures and comments from a series of Federal Reserve officials ( Fed), including Chairman Jerome Powell on Thursday.
The greenback strengthened last week after the election of Donald Trump, with the Republican’s economic program, including a possible increase in tariffs, expected to support growth, inflation and key rates.
The dollar gained 0.44% against a basket of reference currencies, while the euro lost 0.52% to 1.0662 dollars.
Bitcoin is trading at $82,237 on Monday, driven by expectations of a boom in cryptocurrencies in a favorable regulatory environment following the election of Donald Trump as US president.
OIL
Oil prices fell on Monday as the recovery plan from China, the second largest oil consumer country in the world, disappointed investors, and as the US dollar strengthened, making crude “expensive” as the latter exchange in US dollars.
Brent lost 1.38% to $72.85 per barrel and American light crude (West Texas Intermediate, WTI) lost 1.62% to $69.24.
NO MAJOR ECONOMIC INDICATOR EXPECTED THIS DAY
(Some data may have a slight lag)
(Writing by Diana Mandiá, editing by Kate Entringer)
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I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
