PARIS (Reuters) – The main European stock markets are expected to be hesitant at the opening on Monday, in a context of caution after contrasting indicators on Friday and before numerous publications this week.
Futures contracts suggest an opening down 0.2% for the Parisian CAC 40, compared to 0.4% for the FTSE in London, and 0.11% for the EuroStoxx 50. The Dax in Frankfurt does not show any direction marked after the publication of trade figures and orders to industry.
Several indicators published last week made investors hesitate, who were betting at the end of last year on a rapid and significant drop in interest rates.
The robustness of the monthly employment report in the United States and the rebound in European inflation in December, published on Friday, have called into question this optimistic scenario for the markets, which are also positioning themselves for a burst of publications this week.
The CPI inflation figures in the United States for December will be published on Thursday. If investors are betting on a further slowdown in price momentum, an upside surprise could cause markets to react.
Inflation data from China and Japan are due on Friday and Tuesday respectively.
The quarterly results season across the Atlantic will also begin this week, with the publication of figures from the major American banks next Friday.
Developments in the Middle East could also impact the markets.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended slightly higher after a seesaw session on Friday, depending on contrasting indicators on the state of the American economy.
The Dow Jones index gained 0.07%, or 25.77 points, to 37,466.11 points. The broader S&P-500 gained 0.18% and the Nasdaq Composite gained 13.77 points (0.09%) to 14,524.07 points.
IN ASIA
The Tokyo Stock Exchange is closed for Coming of Age Day, a public holiday celebrated on the second Monday in January in Japan.
Chinese indices are falling and approaching a five-year low, tensions between China and Taiwan reigniting while five American industrial groups linked to the defense sector have been targeted by new sanctions. The Shanghai SSE Composite lost 1.42%, the CSI 300 1.29%, the Hong Kong Hang Seng index 2.06%.
RATE
American yields hesitate before numerous publications.
The ten-year Treasury yield is stable at 4.0513%, the same for the two-year rate, at 4.3954%.
The German ten-year yield rose 1.6 basis points to 2.159%, while that of the two-year rate rose 1 basis point to 2.578%.
CHANGES
Currency markets are calm ahead of many releases this week.
The dollar is standing still against a basket of reference currencies, while the euro is stable at $1.095. The pound sterling remains at $1.2713.
In Asia, the yen strengthened by 0.3% to 144.21 yen per dollar, in a context of low liquidity while Japanese operators are on vacation, while the Australian dollar lost 0.04% to 0.671 dollars.
OIL
Oil is falling as Saudi Arabia lowered its official selling price for February on Sunday, signaling that demand remains weak.
Brent fell 1.17% to $77.84 per barrel and American light crude (West Texas Intermediate, WTI) fell 1.3% to $72.85.
(Written by Corentin Chappron, edited by Bertrand Boucey and Kate Entringer)
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