by Mara Vilcu

PARIS (Reuters) – The main European scholarships are expected to decrease on Monday, resuming their breath after the gains recorded during the session on Friday after the speech of the president of the American Federal Reserve (Fed), in Jackson Hole, who helped strengthen the anticipations of a drop in rates in September in the United States.

According to the first indications available, the Parisian CAC 40 could lose 0.19% at the opening.

The term contracts report an opening down 0.31% for the Dax in Frankfurt and 0.3% for the Stoxx 600. The London Stock Exchange is closed today due to a public holiday.

At the start of the week, the markets resume their breath after Friday, the president of the Fed, Jerome Powell, spoke of a possible drop in rates at the meeting of the Central Bank of September, without having made a firm commitment, recognizing the growing risks for the labor market while affirming that the possibility of higher inflation persisted.

“This news strengthens our opinion according to which the Fed will soften its monetary policy in response to the weakening of labor demand and that the risk weighing on our forecasts of a significant slowdown in global growth during the quarter is upward -oriented,” said Bruce Kasman, global economic research manager at JPMorgan.

The president of the New York Fed, John Williams, must speak later on Monday, and the markets will be attentive to his words to know if he shares the vision of Jerome Powell in matters of monetary policy.

In addition, investors will monitor the publication of PCE inflation figures in the United States on Friday, which should show underlying inflation reaching its highest level since the end of 2023, at 2.9%.

Regarding the financial results, all eyes turn to Nvidia which will publish its quarterly results on Wednesday, after the sales movement which affected the major American technological values ​​last week.

The values ​​to follow:

A Wall Street

The New York Stock Exchange ended up on Friday on Friday increased, the Dow Jones index finishing at a closing record, after the speech of the president of the Federal Reserve Jerome Powell at the Jackson Hole Symposium, which strengthened anticipations of lower interest rates in September in the United States.

The Dow Jones index won 1.89%, or 846.24 points, at 45,631.74 points. Standard & Poor’s 500, wider and main reference of investors, took 96.74 points, or 1.52% to 6,466.91 points. The Nasdaq Composite, with a strong technological component, advanced in its side of 396.22 at 21,496,535 points.

In Asia

The Tokyo Stock Exchange is up 0.33%, driven by technological values, the internal market reacting to optimism aroused by a softening of monetary policy in the United States.

Chinese and Hong Kong actions are progressing on Monday, drawn by the rare and real estate sectors.

In China, the composite index of the Shanghai Stock Exchange increased by 0.87% and the CSI 300 of large capitalizations advances by 1.35%.

The Hong Kong Stock Exchange earns 2.08%.

Changes / Rate

The dollar is on a small increase on Monday and tries to straighten after reaching its lowest level in four weeks against the euro, after the speech of the president of the Fed, which dropped the American currency over 1%.

The dollar earns 0.17% against a basket of reference currencies.

The euro lost 0.12% to $ 1.1701.

On the bond market, the yield of Treasuries at ten years is advancing from 1.1 base points to 4.2692%, after falling eight base points on Friday following Jerome Powell’s speech.

OIL

Oil prices are increasing after Ukraine has intensified its attacks on energy sites in Russia, fueling fears of an interruption in Russian oil supply, while anticipations of a drop in American interest rates have supported global growth prospects and fuel demand.

Brent advances 0.09% to 67.79 dollars per barrel and light American crude (West Texas Intermediate, WTI) takes 0.11% to 63.73 dollars.

Main economic indicators at the agenda of August 25:

Pays GMT indicator previous consensus period

8:00 am IFO index of Morale of August 88.5 88.6

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(Written by Mara Vîlcu, edited by Blandine Hénault)

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