by Mara Vilcu
(Reuters)-Wall Street is expected in the red on Monday and European scholarships are down mid-session, at the start of a week in charge of political and geopolitical events and after the rating agency Moody’s lowered the credit note from the United States on Friday evening, the future in New York indices report an opening of Wall Street down 0.70% for the Dow Jones, 1.08% for the Standard & Poor’s-500 and 1.44% for the NASDAQ. In Paris, the CAC 40 lost 0.69% to 7,832.41 points around 11:09 GMT. In Frankfurt, the Dax recedes 0.10% and in London, the FTSE 100 yields 0.54%.
The Eurostoxx 50 index is down 0.71%, the FTSEURofirst 300 lost 0.61%and the Stoxx 600 abandons 0.60%.
It is the beginning of a week rich in political and geopolitical events, while investors digest data on Monday translating a slowdown in industrial production and retail sales in April in China.
The rating agency Moody’s lowered the credit note from the United States on Friday evening, calling into question the American fiscal policy after a week of prudent optimism among investors.
“What Moody’s notes, clearly, is that nothing is done to reduce colossal debt,” said George Lagarias, chief economist at Forvis Mazars
The ever increasing American deficit remains at the center of concerns while the Donald Trump tax reductions project, blocked for several days by dissension within the republican party on budget cuts, was approved on Sunday by a key congress commission.
The American secretary of the Treasury, Scott Bessent, took advantage of televised interviews on Sunday to criticize Moody’s decision, while warning the business partners that they would be imposed on maximum customs duties if they did not offer “good -faith” agreements.
In Europe, the news is more encouraging, the United Kingdom preparing Monday to initiate the most important reset of its links with the European Union (EU) from Brexit, focusing on a closer collaboration on trade and defense and seeking to contribute to the growth of the economy and strengthen security on the continent.
In addition, the pro-European centrist candidate for the Romanian presidential election, Nicusor Dan, won the Romanian presidential election on Sunday. At the same time, France holds a summit bringing together more than 200 bosses from around the world which must announce around 35 billion euros in investments in France.
US President Donald Trump also announced on Saturday that he would speak on Monday with his Russian counterpart Vladimir Putin, notably about the war in Ukraine to “put an end to the bloodbath” and approach the subject of trade while the United States arrived at a trade agreement with China last week.
The values ​​to follow at Wall Street [L8N3RR0FB]
Values ​​in Europe
Euronext lost 2.17% after changes in recommendation.
Ryanair gained 3.12% after its results.
Rate of the euro zone yields are increasing slightly on Monday, in the wake of the United States, while the degradation of the United States credit note by Moody’s has strengthened concerns about future budget policies.
The yield of Treasuries at ten years earns 11.1 base points at 4,5505%. The two years advances 2.9 base points at 4.0124%.
The yield of the German Bund at ten years takes 5.6 base points at 2,6420%. The two years advances from 3.9 base points to 1.8910%.
Changes
The greenback is falling on Monday, reaching its lowest level in ten days ahead of the yen, a refuge value, while the markets digest the lowering of the credit note in the United States.
The dollar loses 0.90% against a basket of reference currencies.
The euro earns 0.98% to $ 1.1272.
OIL
Petroleum fell on Moody’s credit noted by Moody’s and the publication of official data on Monday, under the effect of the degradation of official data indicating a slowdown in industrial production and retail sales in China.
The Brent fell 1.3% to 64.56 dollars per barrel and the American light crude (West Texas Intermediate, WTI) lost 1.36% to 61.64 dollars.
No more economic indicator at the May 19 agenda
(Some data may accuse a slight offset)
(Written by Mara Vîlcu, edited by Augustin Turpin)
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