by Diana Mandia
(Reuters)-Wall Street is expected to decrease on Monday and most European scholarships are progressing in mid-session, relieved by the victory of the conservatives in the German elections, who should lead to a coalition with the Social Democrats, thus avoiding the formation of ‘A new tripartite coalition feared by the markets.
After the sharp drop recorded last week, future in New York indices report an opening up 0.75% for the Dow Jones, 0.53% for Standard & Poor’s-500 and 0.44% for The Nasdaq.
In Frankfurt, the Dax advances 0.82%.
In Paris, the CAC 40 lost 0.22% to 8,136.89 points around 11:59 GMT, sealed by Schneider Electric, which suffers from a Cowen TD note reporting the cancellation by Microsoft for the rental of data centers for the ‘Ia.
In London, the FTSE 100 goes up 0.08%.
The Eurostoxx 50 index is down 0.06%, the FTSEURofirst 300 wins 0.08%and the Stoxx 600 increased 0.14%.
The equity markets are relieved by the victory of the CDU/CSU conservative bloc in the anticipated legislative elections in Germany, which should allow its leader Friedrich Merz to form a government with the Social Democratic Party (SPD), reassuring the markets which feared a new tripartite coalition with the Greens and a greater progression of the alternative far-right party for Germany (AFD).
Although the Conservatives promised Monday to act quickly to try to form a coalition, a request also expressed by German business leaders, the talks are however likely to be complicated and delay the implementation of budgetary reforms in a country weakened by two consecutive years of contraction.
“The thing that worries investors the most is the time it takes to form a coalition,” said Lale Akoner, analyst at Etoro.
Investors also assess the room for maneuver that the new government will have, since AFD and the Left Party Die Linke have won a third of the seats in the new parliament together, which is sufficient to block the modifications of the Constitution, including A relaxation of the debt brake, one of the central points of the electoral campaign.
The form of the future German government will be all the more monitored as uncertainty persists as to a possible peace agreement in Ukraine, which between Monday in its fourth year of war, and as an extraordinary summit of EU leaders Will be held next week to discuss the way to finance Europe’s needs for defense.
On the macroeconomic level, the inflation of the euro zone accelerated over one year in January in accordance with the first estimate, according to final Eurostat data, while the morale of German entrepreneurs has increased less than expected in February, shows a survey of the IFO Institute published Monday.
The week will also be responsible for the markets: NVIDIA figures are expected on Wednesday, while PCE inflation, the measurement of price dynamics which determines the damage to the mandate of the federal reserve, will be published on Friday.
The values ​​to follow at Wall Street
Berkshire Hathaway took 1.4% foreshadowing after the Conglomerate of the billionaire Warren Buffett announced a record annual profit during the weekend.
Values ​​in Europe
German Rheinmetall defense groups, Hensoldt and Renk increased by 3.4% to 5.6%, supported by the prospects for increasing military spending after the conservative victory on Sunday.
The engineering company Siemens Energy loses 2.6% and the manufacturer of electrical equipment Schneider Electric 3.6%, both sealed by a Cowen TD note signaling the cancellation by Microsoft of the rental contracts of data centers ‘Ia.
The French supplier of satellite services Eutelsat, which successfully carried out the first world -scale tests on 5G technology for non -terrestrial networks (NTN), advances by more than 11%.
Just Eat Takeaway.com takes 54% after Prosus declared its intention to launch a public purchase offer for the food delivery group.
Elior jumped 8.4% after Citigroup resumed the value of the value with a recommendation to “buy”.
RATE
Obligation yields are advancing slightly in the euro area on Monday, the result of the German legislative elections having strengthened the expectations of policies favorable to growth, even if uncertainty remains as to the reform of the debt brake. The yield of the German Bund at ten years takes 2.3 base points at 2,4870%. The two -year -old earns around 1 basis point at 2.1090%.
In the United States, the yield of Treasuries at ten years advances from 1.7 base points to 4.4371%. It fell on Friday at its lowest level in two weeks after several data reported a slowdown in growth, which could strengthen expectations of Fed rate reductions in 2025.
Changes
The euro earns 0.12% at $ 1.0,471, supported by the results of the German elections, although its gains attenuated mid-session after reaching a higher one month of 1.0528 dollars.
The dollar is stable against a basket of reference currencies.
OIL
Oil prices are rather stable on Monday, investors awaiting clarifications on talks aimed at ending the war in Ukraine and assessing the prospect of a recovery by Iraq of gross exports from Kurdistan under the pressure of States -Unis.
Brent took 0.2% at $ 74.58 per barrel and light American crude (West Texas Intermediate, WTI) 0.18% to $ 70.53.
No more major economic indicator at the agenda of February 24
(Some data may accuse a slight offset)
(Written by Diana Mandiá, edited by Augustin Turpin)
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