PARIS (Reuters) – The main European stock markets fell slightly at the start of the session on Monday, with caution dominating the markets before important meetings this week on the front of central banks and economic indicators.
In Paris, the CAC 40 lost 0.34% to 6,251.55 points around 09:00 GMT. In London, the FTSE 100 lost 0.19% and in Frankfurt, the Dax fell 0.04%.
The EuroStoxx 50 index is down 0.09%, the FTSEurofirst 300 0.26% and the Stoxx 600 0.17%.
European equities are starting to fall again after benefiting last week in particular from speculation that the pace of the Federal Reserve’s hikes could slow in the near future.
Investors expect the institution to raise rates by three-quarters of a point on Wednesday, but they especially hope that it will provide indications on the trajectory of its monetary tightening.
“The question is whether the Fed is in a rush to slow the pace, given that the labor market remains robust and inflation remains high,” said John Plassard at Mirabaud.
Besides the Fed, the week will also be animated by the monetary policy meeting of the Australian central bank (Tuesday) and the Bank of England (Thursday).
In terms of indicators, the publication on Friday of the monthly report on employment in the United States will provide new elements on the American economy. For now, investors’ attention is focused on the first estimate of gross domestic product in the third quarter and inflation in October in the euro zone.
In China, activity in services and in the manufacturing sector contracted in October, according to official PMI indices, due to slowing global demand and restrictions related to COVID-19.
The sectors among the most exposed to the economy are suffering: the Stoxx raw materials index lost 0.66% and that of energy 0.45%.
Safran (-1.90%) shows one of the biggest drops in the CAC 40, Citi having lowered its recommendation to “neutral”.
The action listed in Germany of Petrobras fell by more than 7% after the victory in the presidential election in Brazil of Luis Inacio Lula da Silva, opposed to the privatization of the Brazilian public oil company, unlike the outgoing president, Jair Bolsonaro.
(Written by Laetitia Volga, Editing by Kate Entringer)
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