by Claude Chendjou
PARIS (Reuters) – The main stock markets in Europe ended lower on Monday and Wall Street was tilted in the red at mid-session as the indices moved at record highs, investors opting for caution in a week marked by new results from banks and the first publications from technology companies.
In Paris, the CAC 40 ended down 0.28% at 7,498.18 points after hitting a record 7,552 points. The British Footsie eroded 0.1%. The German Dax lost 0.11%.
The EuroStoxx 50 index fell by 0.53%, the FTSEurofirst 300 gave up 0.06% and the Stoxx 600 ended almost stable (-0.01%).
In the absence of catalysts, the indices showed some volatility in trading, with the lackluster green at the start of the session giving way to small downward swings at the close.
Investors await important statistics in China on Tuesday, notably on GDP, while Wednesday will be published the Beige Book of the American Federal Reserve (Fed) which serves as a basis for the work of the monetary policy committee (FOMC) of the central bank. .
According to the FedWatch Barometer, the likelihood of a 25 basis point Fed rate hike in May has increased to nearly 90% from 78% last week as several Fed officials are set to comment on this. week.
In the euro zone, where the final inflation figures for March will be published on Wednesday, the European Central Bank’s rate peak is expected at 3.75% and a rise in the cost of credit of 25 basis points is expected. also scheduled for May.
On the corporate earnings side, Goldman Sachs Group, Bank of America Corp and Morgan Stanley are due to deliver their results on Tuesday after those of Citigroup, JPMorgan Chase & Co and Wells Fargo & Co as a banking crisis rocked the sector last month.
In new technologies, sensitive to changes in interest rates, Netflix, Tesla and IBM are expected this week.
VALUES
In Paris, luxury stocks posted one of the biggest declines in Paris with LVMH in particular (-2.15%) while L’Oréal is due to publish its results on Tuesday, while Publicis (+2.45%) is emerged at the top of the CAC 40.
Airbus (+2.07%) and Air France (+1.42%) ended in the green after their release from charges of manslaughter in the crash in 2009 of the Rio de Janeiro-Paris link, which caused 228 victims.
Mergers and acquisitions operations have stimulated trade in Europe, particularly in electronic payments where Network International jumped 19.86% after receiving a takeover offer from a consortium led by CVC Capital and Francisco Partners, resulting in its wake Worldline (+2.19%) and Nexi (+1.44%).
In video games, Rovio Entertainment soared 18.14% on Sega’s bid for the publisher of Angry Birds, while British oil and gas services specialist John Wood Group advanced 6.704 % in view of a takeover offer that Apollo Global Management could make by May 17.
AT WALL STREET
At the time of the close in Europe, the Dow Jones retreated by 0.06%, the Standard & Poor’s 500 by 0.27% and the Nasdaq by 0.47% in expectation of additional results from companies.
Analysts are forecasting a 4.8% year-on-year decline in first-quarter S&P-500 company earnings, according to Refinitiv data. This, however, represents an improvement over their estimate last week of a 5.2% decline.
In stocks, Alphabet lost 3.51% in response to information that Samsung plans to replace Google’s internet search engine with Microsoft’s on its devices.
Merck & Co lost 0.61% after the announcement on Sunday of the takeover of Prometheus Biosciences (+69.26%) for around 10.8 billion dollars (9.83 billion euros), which will allow it to strengthen in the field of immunology.
THE INDICATORS OF THE DAY
Manufacturing activity in the New York area recorded a strong increase in April (+10.8 after -24.6 in March) while analysts expected it to fall sharply, the monthly survey showed on Monday. regional branch of the Federal Reserve.
CHANGES
The dollar, which fell to a one-year low on Friday, rebounded 0.66% against a basket of benchmark currencies in reaction to figures from the Empire State activity index.
The euro is trading at 1.091 dollars, down 0.81%.
RATE
On bonds, the ten-year German Bund yield ended up nearly five basis points at 2.48%, while its US equivalent rose seven basis points to 3.59% pending new statements expected this week from Fed officials like John Williams and Loretta Mester.
OIL
The strength of the dollar weighs on oil prices: Brent yields 1.8% to 84.76 dollars a barrel and American light crude (West Texas Intermediate, WTI) 1.89% to 80.96 dollars.
(Written by Claude Chendjou, edited by Blandine Hénault)
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