Traders work at the New York Stock Exchange
(Reuters) – Major European stocks are expected to rise on Monday after improved investor sentiment in China and encouraging employment data in the United States.
The first indications available show that the Parisian CAC 40 would gain 0.39% at the opening. Futures contracts suggest an advance of 0.43% for the FTSE in London, 0.23% for the Dax in Frankfurt and 0.33% for the EuroStoxx 50.
Country Garden, a major Chinese property developer embroiled in a liquidity crunch, won a grace period from its creditors for the repayment of one of its offshore bonds, boosting morale in China.
Markets are also betting that Beijing will put in place new measures to help the economy, sources having told Reuters that a relaxation of the rules governing the purchase of residences was in particular planned.
U.S. jobs data, released on Friday, meanwhile showed the jobless rate rose faster than expected in August, raising hopes that labor market tensions are beginning to dissipate, which would eliminate the risk of further rate hikes.
“From the Federal Reserve’s perspective, the jobs data was a ‘Goldilocks’ moment (not showing too sharp a slowdown or too rapid a rise),” the Rabobank strategists wrote.
“Overall, the survey gave the impression that the Fed may have pulled a rabbit out of its hat and put the economy on the path to the much-desired ‘soft landing’.”
Trading will be limited on Monday as markets in the United States are closed due to “Labor Day”, which traditionally marks the end of the summer holiday period.
Several indicators are expected this week and also encourage a wait-and-see attitude, including the services ISM and Chinese data on prices and trade.
AT WALL STREET
The New York Stock Exchange ended in mixed order on Friday, after the release of employment data showed that the labor market in the United States remains solid, despite some signs of deterioration.
The Dow Jones Industrial Average gained 0.33%, or 115.8 points, to 34,837.71 points, the broader S&P-500 gained 8.11 points, or 0.18%, to 4,515.77 points. , while the Nasdaq Composite fell 3.15 points (-0.02%) to 14,031.82 points.
IN ASIA
Japanese markets are up, supported by the prospect of an end to rate hikes in the United States. The Nikkei took 0.58% to 32,899.99 points, the Topix rising 0.69% to 2,366.05 points, still at a 33-year high.
Kobe Steel posted the best performance in the Nikkei, up 5.79% after 3.88% on Friday.
The group is said to have developed new steel plates for electric vehicles.
Improved morale in China is supporting local indices. The Shanghai SSE Composite gained 1.12%, the CSI 300 1.38% and the Hong Kong Hang Seng index 2.55%.
CHANGES
Currency markets are stable after repositioning on Friday following the US jobs report.
The dollar fell 0.08% against a basket of benchmark currencies, the euro nibbling 0.12% to 1.0786 dollars, while the pound sterling took 0.15% to 1.2607 dollars.
In Asia, the yen is treading water at 146.17 yen to the dollar, while the Australian dollar is up 0.33% at 0.6471 dollars, ahead of the meeting of the Australian central bank on Tuesday, which should maintain its rates at their current levels.
RATE
US rates markets are closed on Monday.
OIL
Oil is steady as markets digest the implications of changing sentiment in China and still strong employment data in the US.
Brent is stable at $88.57 a barrel, with US light crude (West Texas Intermediate, WTI) remaining flat at $85.6.
(Written by Corentin Chapron)