File photo of traders in London, Britain
PARIS (Reuters) – Major European stocks are expected to fall at the open on Monday as markets digest lackluster U.S. and Chinese data, while a warning shot from a Russian ship heading for a cargo ship in the Black Sea revived geopolitical concerns.
Futures contracts indicate that the CAC 40 in Paris would yield 0.22% at the opening, while the FTSE in London would fall by 0.25%, against 0.16% for the Dax in Frankfurt, and 0.16% for the EuroStoxx 50.
US producer prices were higher than consensus expected on Friday, up 0.3% month on month and 0.8% year on year.
Economists polled by Reuters on average forecast an increase of 0.2% compared to June and 0.7% on an annual basis.
On the other side of the Pacific, the volumes of new bank loans fell 89% in July to their lowest level since 2009, according to the indicator released Friday by the Chinese central bank.
These bad data were not enough to trigger the announcement of new support measures, while investors are already criticizing the government for not supporting its economy enough and the publication of indicators on retail sales and industrial production, expected Tuesday, urge caution.
In addition, the warning shot from a Russian ship in the Black Sea to stop a cargo ship bound for Ukraine has revived fears of an extension of the Ukrainian conflict.
VALUES TO FOLLOW:
AT WALL STREET
The New York Stock Exchange ended in mixed order on Friday, as technology and growth stocks were hurt by rising bond yields after the release of higher-than-expected producer price data.
The Dow Jones Industrial Average gained 0.3%, or 105.25 points, to 35,281.4 points, the broader S&P 500 lost 4.78 points, or 0.11%, to 4,464.05 points, and the Nasdaq Composite fell for its part by 76.18 points (0.56%) to 13,644.85 points.
IN ASIA
Japanese markets ended lower, depressed by Chinese data and dragged down by semiconductor and energy-related stocks. The Nikkei ended in the red, down 1.27% to 32,059.91 points, the Topix dropping 0.94% to 2,281.89 points. Chip test equipment maker Advantest fell 3.16%, while energy company Inpex lost 4.54%.
Chinese markets retreat after poor credit data. The Shanghai SSE Composite lost 0.46%, the CSI 300 0.78% and the Hong Kong Hang Seng index 2.14%.
CHANGES
The dollar strengthens slightly after the data on producer prices, which points to higher rates.
The dollar is up 0.15% against a basket of benchmark currencies, the euro eroding 0.16% to $1.0927, while the pound is down 0.13% to $1.2677 .
In Asia, the yen gained 0.11% to 144.8 yen to the dollar after opening the session at its weakest level since November 2022, while the Australian dollar sank 0.34% to 0.6476 dollar.
RATE
Yields remain steady as investors digest data released last week.
The yield on the ten-year Treasury remains at 4.1659%, against 4.899% for the two-year.
The German ten-year yield was stable at 2.628%, that of the two-year rate rising by 1.3 bp to 3.05%.
OIL
Oil is down as the dollar strengthens and poor Chinese data weighs on sentiment.
Brent fell 1.23% to $85.74 a barrel, after seven straight weeks of weekly gains, with US light crude (West Texas Intermediate, WTI) falling 1.29% to $82.12.
NO MAJOR ECONOMIC INDICATOR EXPECTED TODAY
(Written by Corentin Chapron, edited by Tangi Salaün)