by CORENTIN CHAPRON
PARIS (Reuters) – The main European stock markets are expected to fall at the opening on Monday, in a wait-and-see context before the publication of important indicators.
Futures contracts suggest an opening down 0.10% for the Parisian CAC 40, compared to 0.25% for the FTSE in London, 0.11% for the Dax in Frankfurt, and 0.10% for the EuroStoxx 50.
Markets are hesitant before a week full of crucial data for the trajectory of rates and economies in the euro zone and the United States.
The PCE consumer price index, the inflation measure favored by the Federal Reserve, is due Thursday and should see its weakest increase since mid-2021, according to market expectations.
Investors will also follow the eight speeches by members of the Fed’s board of governors, including that of Jerome Powell, the president of the institution, expected on Friday.
Monetary policymakers are expected to reaffirm that rates will remain restrictive for longer than markets expect, while an upward surprise in inflation could also impact investor projections, with some betting that the first rate cut would take place in March.
In the euro zone, inflation is also expected on Thursday, while the President of the European Central Bank, Christine Lagarde, will speak on Monday at 15:00 GMT at the European Parliament.
The next OPEC+ meeting, also on Thursday, could also influence the inflation outlook if the organization decides to reduce its crude production again.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended Friday without much change and with low trading volumes at the end of a shortened session the day after a closing day due to the Thanksgiving holiday.
In the absence of many speakers, the Dow Jones index gained 0.33%, or 117.12 points, to 35,390.15 points. The broader S&P-500 finished almost flat, with a modest gain of 2.72 points, or 0.06%, to 4,559.34 points. The Nasdaq Composite for its part fell 15 points (-0.11%) to 14,250.86 points.
IN ASIA
The Tokyo Stock Exchange ended lower on Monday, with investors taking profits in trades with no obvious direction. The Nikkei index lost 0.53% to 33,447.67 points and the broader Topix lost 0.38% to 2,381.76 points.
Investor SoftBank Group fell 1.69%, the main drag on the Nikkei, while Mitsubishi Heavy Industries fell 5.01%.
Chinese indices fell under pressure from new data on industrial profits, which grew less quickly than expected in October. The Shanghai SSE Composite fell 0.3%, the CSI 300 0.73%, the Hong Kong Hang Seng index 0.3%.
RATE
US yields are immobile in a wait-and-see environment.
The ten-year Treasury yield remains at 4.4782%, while the two-year rate remains at 4.9569%.
The German ten-year yield is stable at 2.641%, while that of the two-year rate nibbles 1.6 bp to 3.089%.
CHANGES
Foreign exchange markets are stable at the start of a busy week of publications.
The dollar declined by 0.13% against a basket of reference currencies, while the euro gained 0.14% to 1.0954 dollars and the pound sterling 0.13% to 1.2623 dollars.
In Asia, the yen strengthened by 0.43% to 148.8 yen per dollar, while the Australian dollar increased by 0.14% to 0.6591 dollars.
OIL
Oil is hesitant before the next OPEC+ meeting, scheduled for Thursday, the organization’s member countries having failed to agree on a common position, which forced them to postpone their meeting.
Brent lost 0.58% to $80.11 per barrel, with light American crude (West Texas Intermediate, WTI) dropping 0.65% to $75.05.
NO MAJOR ECONOMIC INDICATORS ON THE AGENDA FOR NOVEMBER 27
(Edited by Bertrand Boucey and Kate Entringer)
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