Photo of traders in Frankfurt
by Claude Chendjou
PARIS (Reuters) – European stock markets ended slightly lower on Monday, after having spent a good part of the exchanges in the green, the session having been hesitant in the absence of investors on the American markets closed because of Labor Day.
In Paris, the CAC 40 ended down 0.24% at 7,279.51 points. The British Footsie lost 0.16% and the German Dax lost 0.1%.
The EuroStoxx 50 index fell by 0.06%, the FTSEurofirst 300 by 0.02% and the Stoxx 600 by 0.04%.
In an undecided session, marked by a certain volatility, the index on the Euro Stoxx 50 having finished up 4.51%, the equity markets alternated one foot in the red, another in the green, on narrow spreads as investors digest last week’s macro data.
The positive trend of the morning, born of the hope that the American Federal Reserve (Fed) was not going to raise its interest rates any more in view of the rise in the unemployment rate in August in the United States, lost steam. at the end of the session.
The impact of new economic support measures planned in China, notably in the real estate sector, also fizzled as the trade went on, as risk appetite gave way to caution. as European markets move to a three-week high.
“Traders reacted to developments in the oil markets while expectations regarding monetary policy from the Federal Reserve and China also impacted their sentiment,” commented Daniel Takieddine of BDSwiss.
Several central banks are holding their meetings this week, including that of Australia (Tuesday) and Canada (Wednesday), before that the following week of the European Central Bank (ECB), then that of the Fed on September 20.
Futures currently show the odds of a Fed rate pause this month at 93%, while the odds of stopping the current cycle of rising credit costs for good is by 67%.
VALUES
In Europe, Novo Nordisk, whose market capitalization on Friday exceeded that of LVMH (-0.41%), the best listed company on the Old Continent at the time, gained 0.74%, thanks to the launch of its weight loss treatment. Wegovy in the UK market.
On the CAC 40, Teleperformance (+2.08%) finished in the lead and Saint-Gobain (-3.13%) posted the largest drop in the Parisian index.
THE INDICATORS OF THE DAY
German exports fell 0.9% in July from the previous month, according to data from the Federal Statistical Office.
CHANGES
The dollar fell slightly (-0.11%) against a basket of benchmark currencies but remained close to its two-month peak reached at 104.4 points on August 25.
The euro took 0.19% to 1.0794 dollars, while the pound sterling advanced 0.25% to 1.262 dollars.
RATE
Ten-year and two-year German Bund yields each ended up around three basis points, to 2.582% and 3.039% respectively, extending their rise from Friday.
Markets currently expect the ECB to raise interest rates by 25 basis points in September with a 30% probability, while the probability of another hike by the end of the year is 50%.
Speaking at an event in London, ECB President Christine Lagarde said it was essential for central banks to maintain their inflation expectations despite recent price swings.
OIL
Like equity markets, oil is volatile but was trending higher at the close of trading in Europe, with investors betting on further OPEC+ production cuts.
Brent rose 0.29% to 88.81 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.28% to 85.79 dollars.
(Written by Claude Chendjou, edited by Blandine Hénault)