by Claude Chendjou
PARIS (Reuters) – European stock markets are moving in the green on Monday mid-session, mainly supported by oil stocks, but volumes are little expanded in the absence of American investors due to a public holiday in the United States. In Paris, the CAC 40 gained 1.02% to 5,991.43 points around 11:35 GMT. In Frankfurt, the Dax advances by 0.4% and in London, the FTSE takes 1.11%.
The pan-European FTSEurofirst 300 index rose 1.01%, the Eurozone EuroStoxx 50 0.69% and the Stoxx 600 0.96%.
European stock markets, which ended in scattered order on Friday with a slight rise for the Parisian index and a virtual balance for the Stoxx 600 index, posted a cautious rise on Monday, but concerns about inflation and recession then persisted. that the week will be marked by several economic indicators.
Data released Monday by the Federal Statistical Office (FSO) show that inflation in Switzerland reached its highest level in 29 years in June with a rate of 3.4% over one year. In the euro zone, inflation came out last Friday at a record level of 8.6% over one year in June, while producer prices, published on Monday, showed an increase of 36.3% over one year in May.
Data from the Sentix survey also indicated on Monday that the sentiment of investors in the euro zone deteriorated more than expected in July to fall to its lowest level since May 2020, suggesting, says the research firm, a “inevitable” recession.
Investors also have their sights set on the minutes of the June monetary policy meetings of the US Federal Reserve and the European Central Bank, which will be released on Wednesday and Thursday, respectively. Added to this are the highly anticipated figures on Friday from the monthly report on employment in the United States.
In France, on the political level, two weeks after the setback of the presidential camp in the legislative elections, a new team of 41 members led by Elisabeth Borne was presented on Monday, with Olivier Véran as the new government spokesperson and the departure of Damien Abad, targeted by a complaint for attempted rape.
WALL STREET
The New York Stock Exchange, which ended up on Friday, will remain closed on Monday due to July 4, Independence Day in the United States.
VALUES IN EUROPE
On the pan-European Stoxx 600, the energy (+3.72%) and basic resources (+2.08%) compartments, driven by fears over supply, posted the best performances, while he other side of the spectrum, real estate (-1.56%), penalized by the prospect of a rapid rise in interest rates, shows the biggest drop. TotalEnergies advances by 3.62%, Shell by 3.37%, BP by 4.01% and Eni by 2.76%.
In corporate news, Atos plunged 7.5% as several shareholders of the group wrote to the board of directors to demand the departure of the chairman, Bertrand Meunier, according to an article in the daily Le Monde.
Elior, down 2.37%, is also penalized by the announcement of the appointment of Bernard Gault as CEO, analysts pointing to the inability of the collective catering group to find an external candidate.
Elsewhere in Europe, AMS Osram fell 5.01%, as JP Morgan lowered its recommendation to “overweight” to “neutral” on the Austrian sensor manufacturer, in particular because of its debt considered high.
RATES Bond yields in Europe are rising on fears of a recession, the consequence of a rapid rise in the cost of credit in the face of galloping inflation. Money markets expect the ECB to raise interest rates by 135 basis points by the end of the year.
The ten-year German Bund yield rose eight basis points to 1.314% and that of the French OAT of the same maturity took nine points to 1.893%.
EXCHANGES The dollar fell 0.23% against a basket of benchmark currencies but remained close to its 20-year high reached last month.
The euro, up 0.31%, is trading at $1.0459, barely above the five-year low hit in May at 1.0349.
OIL
Oil prices are rising, with supply pressures outweighing fears of a recession, which could penalize demand.
JP Morgan analysts also estimate that oil could reach the stratospheric mark of $380 a barrel in “the most extreme scenario”, one where Russia decides to reduce its oil production by five million barrels per day (bpd). ) in response to the sanctions envisaged by the G7.
Brent rose 0.65% to 112.36 dollars a barrel and American light crude (West Texas Intermediate, WTI) advanced 0.45% to 108.89 dollars around 11:35 GMT.
(Written by Claude Chendjou, edited by Kate Entringer)