PARIS (Reuters) – The main European stock markets are expected to fall at the opening on Monday, in a context poor in data and while the trajectory of the Chinese economy continues to raise questions.
Futures contracts suggest an opening down 0.13% for the Parisian CAC 40, compared to 0.11% for the FTSE in London, 0.23% for the Dax in Frankfurt, and 0.27% for the EuroStoxx 50.
In the absence of indicators on Monday, European markets are digesting the latest data published across the Atlantic, which show that inflationary pressures remain significant.
Producer prices on Friday and CPI inflation on Tuesday surprised on the upside, encouraging investors to position themselves on more restrictive US rates.
“January inflation data confirms the Federal Reserve’s wait-and-see approach. The central bank would like to see a more pronounced slowdown in services inflation, which remains persistent, to have certainty that inflation will return to its objective”, note BofA strategists who consider a rate cut in May less and less likely.
In China, revenues linked to tourism during the Chinese New Year increased by 47% year-on-year, an encouraging sign on the state of domestic demand.
However, the central bank has not further relaxed its monetary policy, while investors continue to hope for more support for the Chinese economy.
US markets will close on Monday in commemoration of Washington’s birth, and market volumes are expected to be lower than usual.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended Friday down, the announcement of stronger than expected growth in producer prices in January in the United States having broken its momentum by dashing hopes of a rapid drop in interest rates. interest from the Federal Reserve.
The Dow Jones index fell 0.39%, or 149.48 points, to 38,623.64 points. The broader S&P-500 lost 24.18 points, or 0.49%, to 5,005.15 points. The Nasdaq Composite fell 132.38 points (0.83%) to 15,775.65 points.
IN ASIA
The Tokyo Stock Exchange ended mixed on Monday, under pressure from semiconductor-related stocks. The Nikkei index lost 0.04% to 38,470.38 points and the broader Topix gained 0.56% to 2,639.46 points.
Tokyo Electron lost 1.56% and Advantest 3.19%. The video game designer Nintendo, for its part, lost 5.84%.
Chinese markets reopened higher after being closed for the Lunar New Year last week. Investors are hoping for more market support measures, while tourism revenue figures support sentiment. The Shanghai SSE Composite gained 1.56%, the CSI 300 1.16%.
RATE
The interest rate markets are closed in the United States.
The German ten-year yield is stable at 2.396%, while that of the two-year rate remains at 2.8241%.
CHANGES
Foreign exchange markets are calm in the absence of new data.
The dollar declined by 0.13% against a basket of reference currencies, while the euro gained 0.13% to 1.0788 dollars, and the pound sterling 0.19% to 1.2622 dollars.
In Asia, the yen strengthened by 0.17% to 149.95 yen per dollar, while the Australian dollar gained 0.18% to 0.6543 dollars.
OIL
Crude markets are digesting the latest data in the United States, which suggests that price pressures will remain high, and are concerned about the situation in China which remains uncertain.
Brent lost 0.79% to $82.81 per barrel, with American light crude (West Texas Intermediate, WTI) losing 0.64% to $78.68.
NO MAJOR ECONOMIC INDICATOR EXPECTED TODAY
(Written by Corentin Chappron, edited by Tangi Salaün)
Copyright © 2024 Thomson Reuters