by Claude Chendjou
PARIS (Reuters) – European stocks ended lower on Monday on the eve of the release of inflation data in Germany and the United States, and the approach of monetary policy meetings of several major central banks.
In Paris, the CAC 40 ended down 0.41% at 6,650.55 points. The British Footsie lost 0.41% and the German Dax 0.45%.
The EuroStoxx 50 index fell 0.53%, the FTSEurofirst 300 0.52% and the Stoxx 600 0.49%.
At the close in Europe, the Dow Jones advanced 0.81%, the Standard & Poor’s 500 0.49% and the Nasdaq 0.27%.
The US indices are notably supported by the prospect of a hike limited to 50 basis points on Wednesday by the US Federal Reserve (Fed), the probability of an increase of this magnitude having strengthened to 93% against 91% previously..
The stronger than expected rise in producer prices in the United States, published on Friday, had raised fears that the Fed would be more aggressive in its monetary policy.
Janet Yellen, the US Treasury Secretary, also predicted on Sunday a sharp decline in inflationary pressures in 2023 while admitting a risk of recession.
Tuesday’s publication of monthly data on consumer prices in the United States, however, maintains a certain caution, hence the weak gains on Wall Street.
In values, the biotechnology company Horizon Therapeutics jumped 15.07% after the announcement of its takeover for 26.40 billion dollars by Amgen (-1.27%), while Microsoft advanced 1.77% at the in favor of an entry, up to 4%, in the capital of LSE Group, the operator of the London Stock Exchange.
In Europe, investors will learn on Thursday of the monetary policy decisions of the European Central Bank (ECB), the Bank of England (BoE) and the Swiss National Bank (SNB).
A 50 basis point rate hike from these three central banks is also expected, but equity markets in Europe suffered further on Monday from profit taking after Friday’s rise.
The resurgence of cases of contamination with the virus responsible for COVID-19 in China also weighed on the morale of investors in Europe, with in particular the decline in luxury stocks and the basic resources compartment (-1.67%). .
VALUES IN EUROPE
In individual stocks in Europe, LVMH lost 0.56%, Kering 1.06% and Richemont 0.41%, with luxury being particularly exposed to China.
The mining groups ArcelorMittal, Eramet and Anglo American fell by 1.62%, 5.05% and 1.09% respectively.
Elsewhere, Uniper lost 0.93% as the European Commission demanded that the German gas importer divest its operations in the Netherlands in order to get the green light for its rescue plan, according to the daily Handelsblatt.
LSE Group, the operator of the London Stock Exchange, gained 2.97% after the announcement of Microsoft’s entry into its capital.
CHANGES
In foreign exchange, the dollar fell 0.13% against a basket of benchmark currencies, investors betting on a slowdown in US inflation and a lull in the rise in Fed rates.
The euro took advantage of this to rise to 1.0546 dollars (+0.15%).
The pound, up 0.25% at $1.2286, was supported by the better than expected UK GDP growth estimate for October.
RATE
Bond yields in Europe were volatile as central bank decisions approached before ending the session up slightly.
That of the ten-year German Bund gained less than a basis point, to 1.93%, while the two-year took about four points, to 2.19%.
In the United States, the yield on ten-year bonds, which had suffered on Friday from the stronger than expected rise in producer prices, advanced by around two points, to 3.58%, while the two-year took five points, at 4.37%, while the market sees interest rates peak at 4.96% in May 2023.
OIL
Oil prices are supported by supply fears due to uncertainty over the timing of the restart of the Keystone pipeline between Canada and the United States, as well as the threat of a drop in Russian production.
Brent rose 2.68% to 78.14 dollars a barrel and American light crude (West Texas Intermediate, WTI) 3.35% to 73.40 dollars.
TO FOLLOW TUESDAY:
Publication at 1:30 p.m. GMT of consumer prices in the United States for the month of November
THE MARKET SITUATION:
(Some data may show a slight shift)
THE FENCE IN
EUROPE
Indices Last Var. Var. %YTD
Points
Eurofirst 300 1726.38 -9.00 -0.52% -8.67%
Eurostoxx 50 3921.82 -20.80 -0.53% -8.76%
CAC 40 6650.55 -27.09 -0.41% -7.02%
Dax 30 14,306.63 -64.09 -0.45% -9.94%
FTSE 7445.97 -30.66 -0.41% +0.83%
SMI 11033.64 -34.66 -0.31% -14.31%
The values to follow in Paris and in
Europe: [WATCH/LFR]
THE TREND TO
WALL STREET
Indices Last Var. Var. %YTD
Points
Dow Jones 33736.94 +260.48 +0.78% -7.16%
S&P-500 3952.67 +18.29 +0.46% -17.07%
Nasdaq 11034.13 +29.51 +0.27% -29.47%
Nasdaq 100 11574.19 +10.86 +0.09% -29.08%
Minutes of the session on Wall
Street: [.NFR]
“The Day Ahead” – Update on the next session
on Wall Street [DAY/US]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 1.0539 1.0530 +0.09% -7.29%
DLR/Yen 137.48 136.56 +0.67% +19.49%
Euro/Yen 144.92 143.85 +0.74% +11.20%
DLR/CHF 0.9356 0.9343 +0.14% +2.57%
Euro/CHF 0.9864 0.9838 +0.26% -4.87%
Stg/Dlr 1.2282 1.2255 +0.22% -9.22%
Index $ 104.9360 104.8100 +0.12% +9.11%
GOLD
Var. %YTD
Gold Spot 1784.06 1796.63 -0.70% +17.60%
RATE
Last Var. Spread/Bund
(pts)
Future Bunds 140.47 -0.05
10-year bunds 1.93 -0.00
Bund 2 years 2.21 +0.01
10-year OATs 2.40 -0.00 +46.60
10-year Treasury 3.57 +0.01
Treasury 2 years 4.37 +0.04
OIL
Previous Price Var. Var.% YTD
US light crude 73.34 71.02 +2.32 +3.27% +19.82%
Brent 78.01 76.10 +1.91 +2.51% +18.14%
(Written by Claude Chendjou, edited by Sophie Louet)
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