PARIS (Reuters) – The main European stock markets are expected to rise on Monday at the start of a week full of indicators in Europe and the United States.
Futures contracts suggest an opening of 0.42% for the Parisian CAC 40, compared to a stable opening for the FTSE in London, a surge of 0.42% for the Dax in Frankfurt and a revaluation of 0.55%. for the EuroStoxx 50.
Investors are starting 2025 with a bang ahead of Donald Trump’s inauguration as the new president of the United States in two weeks.
The session will be marked by the publication of numerous economic indicators in Europe, including the German and French PMIs and preliminary German inflation for December.
The markets will scrutinize these elements, but also preliminary French inflation for December and in the euro zone also expected this week, in order to position themselves on the next rate cuts from the European Central Bank (ECB).
Investors are currently betting on a 100 basis point drop in rates in the first half of the European institution.
However, it is the December employment report in the United States, expected at the end of the week, which could have strong consequences on the markets as the American Federal Reserve (Fed) has ruled out the prospect of significant rate cuts in 2025.
In Asia, Chinese difficulties could continue to weigh on world stock markets while the latest figures on services activity in December reflected a recovery in domestic demand but weak orders from abroad.
A WALL STREET
The New York Stock Exchange ended up on Friday, supported by the rebound in stocks linked to the technology sector and by the hope of seeing the markets amplify in 2025 the momentum gained since Donald Trump’s victory in the presidential election last November.
The Dow Jones index gained 0.80%, or 339.86 points, to 42,732.13 points.
The broader Standard & Poor’s 500 gained 73.92 points, or 1.26% to 5,942.47 points.
The Nasdaq Composite advanced 340.88 points, or 1.77% to 19,621.677 points.
In terms of values, Tesla and Nvidia once again set the tone of the session by gaining 8.21% and 4.45% respectively.
IN ASIA
The Tokyo Stock Exchange closed sharply lower on Monday after taking profits for the first day the market opened in 2025.
The Tokyo Stock Exchange ended down 1.47%.
Chinese markets are moving lower on Monday, reaching a three-month low during the session, weighed down by concerns about economic recovery and geopolitical tensions.
The Hong Kong Hang Seng index declined by 0.42%, the Shanghai SSE Composite fell by 0.15% and the CSI 300 by 0.18%.
RATE
US yields are up after the publication of the ISM manufacturing index on Friday.
The yield on the ten-year Treasury increased by 2.3 basis points to 4.6178%, while the yield on the two-year security increased by 0.4 bps to 4.2828%.
CHANGES
The dollar is falling slightly and taking a break after a strong surge for several weeks, with investors awaiting data released during the week to position themselves on the Fed’s rate outlook.
The dollar fell by 0.04% against a basket of reference currencies, the euro rose by 0.02% to $1.031 and the pound sterling strengthened by 0.14% to $1.2437.
In Asia, the yen declined by 0.25% to 157.66 yen per dollar, the Australian dollar rose by 0.24% to 0.6227 dollars.
OIL
The barrel is moving downward on Monday morning before a busy week in terms of indicators.
Brent fell 0.38% to $76.22 per barrel, American light crude (West Texas Intermediate, WTI) weakened 0.37% to $73.69.
(Written by Bertrand De Meyer)
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