A trader sits near a screen that displays the CAC 40 index
(Reuters) – European stock markets ended in the red on Monday, penalized by profit taking after a US ISM index below expectations.
In Paris, the CAC 40 ended down 0.96% at 7,200.91 points. The British Footsie lost 0.1% and the German Dax 0.54%.
The EuroStoxx 50 index fell 0.7%, the FTSEurofirst 300 0.44% and the Stoxx 600 0.48%.
Risk appetite eased on Monday after dominating Friday’s session following the US debt deal and data showing a slowdown in US wage inflation in May.
Investors opted to take profits, especially after the publication of the Institute for Supply Management’s (ISM) monthly survey on the growth of the services sector which showed a slowdown in May.
The ISM index fell to 50.3 in May from 51.9 the previous month, while economists polled by Reuters on average expected a figure of 52.2.
Market operators also took note of statements by Christine Lagarde, the President of the European Central Bank, who said during a hearing in the European Parliament that she did not see any clear sign of a peak in underlying inflation. in the euro zone, comments that should confirm market expectations of further rate hikes this month and in July.
Bundesbank President Joachim Nagel for his part said that it was not certain that rates would peak this summer.
VALUES
In values, Asos climbed 7% after news reports that the online fashion site received an offer in December from Turkish competitor Trendyol – backed by Alibaba – for £1bn.
UBS, which said Monday hoped to complete the takeover of Credit Suisse “as of June 12”, gained 0.28% on the Zurich Stock Exchange.
AT WALL STREET
At the close in Europe, the Dow Jones fell 0.27%, while the Standard & Poor’s 500 gained 0.19% and the Nasdaq 0.44%.
Apple is trading at an all-time high ahead of its annual Software Developers Conference later today, where the iPhone maker is expected to announce a new mixed reality headset.
THE INDICATORS OF THE DAY
In the euro zone, private business activity slowed but continued to grow in May, supported by the dominant services industry, which offset the prolonged slowdown in the manufacturing sector, the S&P Global survey showed on Monday. .
In France, growth in services slowed in May, while it remained solid in Germany, which suggests a return to growth in Europe’s largest economy, which entered a technical recession in the first quarter.
CHANGES
The dollar is practically unchanged (-0.07%) against a basket of international currencies following the publication of the ISM index in the United States.
The euro for its part gained 0.1% to 1.0714 dollars.
RATE
Eurozone benchmark yields rose on Monday. That of the ten-year German, which had fallen by 28.5 basis points last week, ended up up more than 6 basis points at 2.3%. That of French 10-year bonds rose 6 basis points to 2.9% after S&P left France’s ‘AA’ rating unchanged on Friday.
In the United States, the yield on ten-year Treasuries, on the other hand, lost 1.6 basis points, to 3.67%.
OIL
Oil prices are rising after Saudi Arabia announced a production cut in July of an additional one million barrels per day.
Brent gained 1.5% to 77.27 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.41% to 72.75 dollars.
(Written by Diana Mandiá, edited by Blandine Hénault)