PARIS (Reuters) – European markets ended higher on Monday, despite restrictive comments from U.S. monetary policymakers, as the economic outlook of the United States and China supported risky assets.
In Paris, the CAC 40 gained 0.35% to 8,195.97 points, while the German Dax strengthened by 0.33% and the British Footsie by 0.05%.
The EuroStoxx 50 index ended the session with an advance of 0.19%, compared to 0.14% for the FTSEurofirst 300 and 0.18% for the Stoxx 600.
Several members of the FOMC, the monetary policy committee of the Federal Reserve, stressed Monday that the persistence of inflation in the United States should encourage the central bank to be cautious.
These comments follow a weaker than expected CPI inflation figure in April, which revived hopes of an easing of US monetary policy this year. In the wake of the indicator, published on Wednesday, the Dow Jones, the Nasdaq, gold and copper reached records, because a reduction in Fed rates would benefit the American economy, but also activity worldwide.
The latest announcements from the Chinese government, which has strengthened its support for its real estate markets, also encourage risky assets. Real estate may have represented up to 20% of the activity of the world’s second largest economy, but the sector has been going through a deep crisis since 2021, which is weighing on Chinese economic performance.
The publication of the minutes of the Fed’s latest monetary policy meeting and Nvidia’s results will be the main events in an otherwise calm week.
In terms of indicators, the PMI activity indicators for May will be published on Thursday and will help investors clarify their outlook for the European economy.
A WALL STREET
Wall Street is progressing mid-session, with the Nasdaq hitting a record for the session while the latest indicators published in the United States give hope for an imminent rate cut from the Fed.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.16% for the Dow Jones, compared to 0.4% for the Standard & Poor’s 500, and 0.63% for the Nasdaq Composite.
VALUES
On the Stoxx 600, the basic resources index gained 0.62% and that of energy 0.12% thanks to the real estate recovery measures decided by China.
Scor fell 3.38% after UBS lowered its price target on the reinsurer.
EPC Groupe declined by 2.14%, the explosives manufacturing and distribution company announcing on Monday that it had been the subject of a search by the French Competition Authority.
Richemont rose 5.31%, one of the best performances on the Stoxx 600, after Jefferies and UBS raised their price targets on the luxury group.
British video game company Keywords Studios soared 57.96% after investment fund EQT confirmed advanced discussions with a view to its acquisition for 2.2 billion pounds.
RATE
Yields are rising in the United States in the absence of indicators, with the latest remarks on monetary policy putting pressure on sovereigns.
At the close of the European interest rate markets, the ten-year Treasury yield rose 2.3 bp to 4.4433%, compared to 1.4 bp for the two-year rate, to 4.8393%.
The yield on the German ten-year rose by 1.9 bps to 2.532%, while that of the two-year rate remained stable at 2.994%.
CHANGES
The dollar is strengthening against other currencies, supported by the latest comments from FOMC members.
The dollar gained 0.1% against a basket of reference currencies, while the euro lost 0.11% to 1.0858 dollars. The pound sterling strengthened by 0.04% to $1.2704.
OIL
Crude is hesitating as comments from US monetary policymakers contribute to deteriorating sentiment in the absence of other catalysts.
Brent fell by 0.08% to $83.91 per barrel, American light crude (West Texas Intermediate, WTI) was stable at $80.04.
(Written by Corentin Chappron, edited by)
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