(Reuters) – European stocks ended in disarray on Monday, buoyed in part by measured optimism among investors ahead of a host of corporate results, economic indicators and the Federal Reserve meeting.
In Paris, the CAC 40 ended up 0.33% at 6,237.55 points. The British Footsie gained 0.41% while the German Dax lost 0.33%.
The EuroStoxx 50 index rose 0.21%, the FTSEurofirst 300 also 0.21% and the Stoxx 600 0.13%.
With the European Central Bank signaling monetary tightening last week, the highly anticipated two-day Fed meeting is expected to conclude with a 75 basis point rate hike on Wednesday, market watchers said.
Investors will be curious how the Fed views the pace of future hikes as inflation is likely to pick up and the economy slides into recession.
The first figures for US GDP in the second quarter will be published on Thursday and the Reuters consensus expects growth of 0.4% after a contraction of 1.6% over the period January-March.
In Europe as in the United States, the acceleration of the publications of corporate results should focus the attention of investors, with in particular the giants of the technology sector across the Atlantic. On the Old Continent, Refinitiv I/B/E/S earnings forecasts for Stoxx 600 companies called for a 22% year-on-year increase.
“‘Recession scare’ was dominating in the morning but now it looks like earnings expectations for big US tech stocks are better and that’s boosting market sentiment,” said Stuart Cole, chief macro- economist at Equiti Capital.
The attempt by European Union countries to relax the Brussels plan to limit their gas consumption should also support general market sentiment.
VALUES
European property values are the biggest losers of the day (-1.38%), while the banking sector, which benefits from the rise in central bank rates, signs the best performance (+1.68%).
In individual values, the title Faurecia gained 2.8% after the publication by the automotive supplier of quarterly results above expectations.
Eutelsat loses 17.8% after announcing discussions with its co-shareholders in OneWeb of a possible merger of the two companies by exchange of shares.
AT WALL STREET
At the time of the close in Europe, Wall Street was also moving in scattered order, the Dow Jones gained 0.04% – with among others the decline of 1.6% of McDonald’s – while the Standard & Poor’s 500 rose by 0.20 and that the Nasdaq Composite yielded 0.27%.
CHANGES
The dollar for its part fell by 0.18% against a basket of international currencies, the euro posting a slight increase, to 1.02 dollar.
RATE
The German ten rallied 0.6 basis points to 1.03% as Martins Kazaks, a member of the ECB’s governing council, pleaded for another “significant” rate hike in September after the rise of half a point last week.
OIL
The oil market is rebounding putting aside fears related to demand with the rise in US interest rates.
Brent gained 1.77% to 105.03 dollars a barrel and US light crude (West Texas Intermediate, WTI) also 1.77% to 96.38 dollars.
TO FOLLOW TUESDAY:
(Written by Olivier Cherfan, edited by Jean-Michel Bélot)