by CORENTIN CHAPPRON
PARIS (Reuters) – Wall Street is expected to rise on Monday, while European stocks rebounded at midday, this as yields continued to rise and the Chinese central bank disappointed market expectations by easing only moderate its monetary policy.
Futures on New York indices suggest an opening on Wall Street higher, with the Dow Jones gaining 0.35%, while the Standard & Poor’s 500 advanced 0.47% and the Nasdaq 0.62%. In Paris, the CAC 40 took 1.13% to 7,244.87 points around 10:35 GMT, against an advance of 0.65% for the FTSE in London and 0.67% for the Dax in Frankfurt. The pan-European FTSEurofirst 300 index rose 0.81%, against 0.95% for the EuroStoxx 50 and 0.71% for the Stoxx 600.
Sovereign yields resumed their rise on Monday, with bond markets positioning themselves ahead of the meeting in Jackson Hole, US, where Federal Reserve Chairman Jerome Powell will discuss the economic outlook.
The resilience of the US economy, confirmed by a series of better-than-expected indicators, could justify a further tightening of monetary conditions.
Separately, China’s central bank cut its medium-term lending rate by 10 basis points on Monday, leaving the five-year lending rate unchanged, as analysts expected a 15 basis point cut in both lending rates. ‘interests. THE VALUES TO FOLLOW IN WALL STREET
Nvidia is ahead of more than 2% ahead of the market before the highly anticipated publication of its quarterly results on Wednesday. SoftBank-owned chip designer Arm will file its initial public offering (IPO) on the Nasdaq on Monday, according to multiple sources interviewed by Reuters. VALUES TO FOLLOW IN EUROPE The action of the specialist in online payments Adyen continues to tumble, down 4.98%, analysts at Jefferies and Morgan Stanley having revised their recommendation downwards. Worldline drops 0.33% in the wake of its competitor. The rise in oil prices supported the energy sector (+1.54%), which posted the strongest sectoral growth in the Stoxx 600 index. Total and Engie posted the best performances in the CAC 40, up respectively 2.11% and 2.10%.
The health sector advances by 1.03%, supported by Novo Nordisk which rose by 1.87% after a change in recommendation from Morgan Stanley. RATE
Bond yields are rising in Europe and the United States ahead of the Jackson Hole meeting and against a backdrop of high rate expectations for a longer period than expected. The ten-year Treasury yield rose 4.9 bp to 4.3002%, close to its highest since October, versus 3.5 bp to 4.9705% for the two-year. The German ten-year yield climbed 4.6 bp to 2.666%, while that of the two-year rate rose 3.1 bp to 3.079%. FOREIGN EXCHANGES The dollar is consolidating some of its gains of recent weeks and is down 0.06% against a basket of benchmark currencies.
The euro advanced 0.17% to 1.0891 dollars, while the pound sterling fell 0.08% to 1.2725 dollars. OIL Oil rose despite China’s weaker-than-expected support for its economy, thanks to production cuts implemented by Saudi Arabia and Russia. Brent rose 0.96% to 85.61 dollars a barrel and US light crude (West Texas Intermediate, WTI) rose 1.11% to 82.15 dollars.
NO ECONOMIC INDICATORS ON THE AGENDA FOR AUGUST 21
(Written by Corentin Chapron, edited by Blandine Hénault)
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