Traders work at the Frankfurt Stock Exchange
PARIS (Reuters) – European stock markets ended hesitantly on Monday, ahead of crucial figures on Chinese and American inflation expected this week.
In Paris, the CAC 40 ended stable at 7,319.76 points, like the German Dax, while the British Footsie dropped 0.13%. The EuroStoxx 50 index ended the session up 0.11%, the FTSEurofirst 300 0.11% and the Stoxx 600 0.09%.
US inflation is due on Thursday, with the consensus pointing to an underlying indicator of 4.7% in July, down from 4.8% in June, and the report will be closely scrutinized for any hints it might give on the trajectory. future Federal Reserve rates.
“Inflation should continue to show more subdued trends, which could be more compelling (than the jobs report) and prompt the Fed to be patient and watch how the economy evolves in another meeting”, explain the strategists of PIMCO.
China’s inflation data, to be released on Wednesday, is expected for the opposite reason: Markets fear China’s economy may be in deflation, which could prompt China’s central bank to intervene to revive activity.
The markets are also digesting the numerous quarterly results of European and American companies, the publication of which continues this week.
VALUES
The basic resources sector finished at the bottom of the Stoxx 600 sectors, down 1.05%, led by the drop in Aurubis, which fell 9.47% after announcing expectation of a decline in activity in Europe this year.
Siemens Energy fell 6.14%, after announcing that problems with its wind turbines would cost it 2.2 billion euros, which should lead to a net loss of 4.5 billion euros for 2023 .
OHB ended up 31.52% at 42.35 euros, the group having announced a takeover bid from the KKR investment fund to buy back all outstanding shares for 44 euros per share.
AT WALL STREET
US markets are mixed amidst caution. At closing time in Europe, the Dow Jones climbed 0.99%, while the Standard & Poor’s 500 advanced 0.58% and the Nasdaq Composite fell 0.15%.
RATE
Long yields edge up slightly, while 5-year-ahead inflation swaps hit a 10-year high at 2.6653%.
The ten-year Treasury yield edged up 2.4bp to 4.0864%, while the two-year rate fell 2.5bp to 4.7661%.
The German ten-year yield gained 2.3 bp to 2.562%, while that of the two-year rate fell 3.8 bp to 3.14%.
CHANGES
The foreign exchange markets are waiting for the publication of US inflation, the dollar nibbling 0.07% against a basket of benchmark currencies.
Industrial production figures in Germany showed a much steeper than expected decline in June, of 1.5% against -0.5% expected, which weighed on the euro, down 0.15% to $1.0996. The pound rose 0.14% to 1.2766 dollars.
OIL
Crude is consolidating prices after hitting its highest level in almost four months on Friday, as Saudi Arabia and Russia pleaded for an extension in September of production cuts already announced for August.
Brent fell 1.04% to 85.34 dollars a barrel, US light crude (West Texas Intermediate, WTI) yielding 1.12% to 81.89 dollars.
(Report Corentin Chapron)