(CercleFinance.com) – The main European stock markets are moving without much trend this morning, with Paris gaining nearly 0.3% ahead of Frankfurt (stable) and London (-0.1%).
The optimism which recently carried the world markets after the decline in inflation levels and the more accommodating tone of the Fed seems to be gradually falling.
The Thanksgiving period, which will see the American markets close their doors on Thursday and only open for a shortened session on Friday, also seems not conducive to risk-taking.
Investors should avoid taking new positions, volumes are expected to be low and few elements appear likely to make the markets react.
It remains to be seen whether the recent upward trend has prepared the ground for the famous end-of-year ‘rally’, or whether the stock markets are on the contrary ripe for a new episode of consolidation.
In the bond compartment, the yield on ten-year Treasuries tends slightly towards 4.45%. Remember that the probability of a further rate hike by the Fed between now and the end of the year now appears to be zero.
In this context, the euro continues its rise against the dollar, near 1.0920, establishing a new high since the end of August.
‘Hedge funds are currently positioned to buy the euro with a target of $1.10,’ note the teams at DeftHedge, a risk management specialist.
On the energy side, oil prices are trying to recover after four consecutive weeks of decline, with Brent gaining 0.8% to 81.2 dollars per barrel.
In European company news, AstraZeneca launches Evinova, a health technology company aimed at accelerating life sciences innovation, clinical trial delivery and better health outcomes.
Bayer announced on Sunday the termination, due to a lack of effectiveness, of a phase III clinical trial on a new anticoagulant, which caused its stock price to fall sharply on Monday morning in Frankfurt (-18%).
Finally, Nokia announced Monday that Philippine telecom operator Globe Telecom had chosen its AVA Energy Efficiency software to reduce its energy consumption and associated costs on its network.
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