by Diana Mandia
(Reuters) – Wall Street is expected to be in disarray on Monday and European stock markets are hesitating mid-session without much catalyst, while investors await speeches from leaders of the European Central Bank (ECB) to get an idea of the possible evolution of interest rates after Donald Trump’s return to the White House. In Paris, the CAC 40 lost 0.29% to 7,248.86 points around 11:49 GMT. In Frankfurt, the Dax fell by 0.36% and in London, the FTSE 100 gained 0.16%.
The EuroStoxx 50 index is down 0.59%, the FTSEurofirst 300 loses 0.28% and the Stoxx 600 drops 0.33%.
In New York, futures contracts give an opening down 0.36% for the Dow Jones, while the Standard & Poor’s-500 and the Nasdaq are expected up 0.03% and 0.37% respectively.
European stock markets begin the week directionless after closing Friday with losses on concerns over potential risks from Donald Trump’s election in the United States, while investors await speeches from the country’s chief economist. ECB Philip Lane and President Christine Lagarde later today to get clues on interest rate developments.
The euro zone’s preliminary purchasing managers’ PMI indices for the month of November, expected on Friday, should provide an overview of the bloc’s economic activity, including in Germany, where the political crisis remains at the heart concerns.
The German “model” which was so successful in the last phase of globalization is now exhausted. It must adapt to competition from China, the electrification of the automobile sector, the prohibitive cost of energy, and the unbridled protectionism of newly re-elected President Trump. The November PMI surveys could bear the trace of the political shock, which adds to so many others which have weakened business conditions,” write ODDO BHF analysts.
Luis de Guindos, vice-president of the ECB, said at an event in Frankfurt on Monday that global trade tensions were adding risk to an already weak euro zone economy.
The European Commission confirmed on Friday its outlook for euro zone gross domestic product (GDP) growth for 2024, while slightly lowering its expectations for 2025, as downside risks to its forecasts have become more significant due to geopolitics and an increase in protectionist measures.
Investors are also hanging on to Nvidia’s results, due Wednesday, as a surprise in the artificial intelligence chip giant’s numbers is likely to have repercussions far beyond the US markets.
Investors are also digesting the latest comments from Federal Reserve (Fed) Chairman Jerome Powell, who said last week that there was no need for the American central bank to rush to reduce its key rates, made of economic growth, the strength of the job market and inflation still above the 2% objective.
VALUES TO FOLLOW AT WALL STREET
Nvidia fell 2.7% in pre-market trading before publishing its results on Wednesday. The US semiconductor giant’s revenue is expected to jump more than 80% to $33 billion, according to LSEG data, and the company is expected to report net profit of $18.4 billion.
Electric car maker Tesla is up 8.1% in pre-market trading, extending its gains following Donald Trump’s victory in the race for the White House.
VALUES IN EUROPE
European technology stocks fell 0.84% pending Nvidia’s quarterly results next Wednesday.
In Paris, Vivendi fell 1.8% after announcing on Monday that it expected stable revenues in 2024 for Havas and Canal +.
British company Melrose Industries rose 5.5% as the owner of aerospace parts maker GKN Aerospace reported a 7% rise in turnover for the four months ending October 31.
RATES US bond yields are rising on Monday, holding near multi-month highs, as investors digest Jerome Powell’s latest comments on rates.
The yield on ten-year Treasuries rose 4.1 basis points to 4.4671%. The two-year gained 0.9 basis points to 4.3098%.
In the euro zone, the yield on the ten-year German Bund rose by 3.4 basis points to 2.3840%, while that of its two-year counterpart rose by 4.9 basis points to 2.1690%.
CHANGES
Foreign exchange markets are sluggish, with no leading indicators expected on Monday.
The dollar, which soared to its highest level in a year last week on concerns that Donald Trump’s policies would hinder the central bank’s fight against inflation, gained 0.06% on Monday against a basket of reference currencies.
The euro in turn lost 0.01% to 1.0540 dollars.
OIL
Oil prices advance on Monday, supported by intensified fighting between Russia and Ukraine over the weekend and the lifting of restrictions that until now prevented Kyiv from using weapons supplied by the United States to strike deep into Russian territory. However, concerns about demand in China and the International Energy Agency’s (IEA) forecast that global oil supply will exceed demand in 2025 are weighing on the market.
Brent rose 0.66% to $71.51 per barrel and American light crude (West Texas Intermediate, WTI) advanced 0.52% to $67.37.
(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.
