(Updated with futures, European bond market open, Tokyo close, Germany producer price)
* US indices expected to decline
* Political setback for Macron after the legislative elections
* Wall Street closed for a holiday
PARIS, June 20 (Reuters) – The main European stock markets are expected to rise on Monday at the opening despite persistent fears about the economy while the progression of the Paris market could be slowed by the results of the legislative elections in France, which see President Emmanuel Macron’s camp lose an absolute majority in the National Assembly.
According to the final results of the Ministry of the Interior, the presidential coalition Ensemble won 245 seats of deputies, far from the 289 necessary to reach an absolute majority, an unprecedented scenario which will force the government to compromise and could slow down the progress of the reforms desired by the Head of State. nL8N2Y60EP nP6N2WM03L
Futures contracts give a rise of 0.22% for the Parisian CAC 40
.FCHI , 0.65% for the Dax in Frankfurt .GDAXI and 0.21% for the FTSE in London .FTSE .
European markets recorded their third consecutive week of declines on Friday, as interest rate hikes by several central banks, including those of the United States, United Kingdom and Switzerland, fueled fears of a sharp economic slowdown.
Several Fed officials are scheduled to speak in the coming days, including Fed Chairman Jerome Powell on Wednesday and Thursday in Congress.
The President of the European Central Bank (ECB), Christine Lagarde, could moderate the session in Europe on the occasion of her hearing in the European Parliament at 13:00 GMT.
In terms of indicators, the rise in producer prices slowed in Germany by 1.6% in May, while economists polled by Reuters expected an average increase of 1.5%. On an annual basis, the index emerged up 33.6%, against 33.5% last month and for the consensus.
THE VALUES TO FOLLOW: nL8N2Y42U8
AT WALL STREET
The New York Stock Exchange will remain closed on Monday due to the Juneteenth holiday, celebrating the end of slavery in Texas.
The New York Stock Exchange ended in disarray on Friday after suffering a brutal correction in the week, amid fears of recession and hikes in interest rates from major central banks.
The Dow Jones .DJI index fell 0.13% to 29,888.78 points. It fell 4.8% over the week, its biggest weekly drop since October 2020.
The S&P-500 .SPX, on the other hand, gained 0.22% to 3,674.84 points but remained down 5.8% over the week.
The Nasdaq Composite .IXIC rose more sharply, by 1.43% to 10,798.35 points, ending a difficult week on a good note (-4.8%).
IN ASIA
On the Tokyo Stock Exchange, the Nikkei .N225 fell 0.74%, penalized by the decline in stocks linked to chips and energy.
In China, the CSI300 index .CSI300 gained 0.67%, led by property stocks, after data showed property sales picked up on support measures.
Another supportive factor is that President Joe Biden’s administration is considering removing some tariffs on Chinese goods, two senior U.S. officials said.
CHANGES
On the foreign exchange market, the “dollar index”, which measures the variations of the greenback against a basket of international currencies, lost 0.29% .DXY . The euro gained 0.26% to 1.0525 dollars. EUR=
Bitcoin BTC=BTSP fell 2.43% below $20,000.
On the bond side, the yield of the German Bund DE10YT=RR at ten is stable in the first trades, at 1.661%. Its French equivalent takes around a basis point at 2.2250%. FR10YT=RR
OIL
The oil market is trending higher as fears of tighter supply take precedence over worries about the economy and crude demand.
Brent LCOc1 advanced 0.37% to 113.54 dollars a barrel and US light crude (West Texas Intermediate, WTI) CLc1 0.26% to 109.85 dollars.
NO MAJOR ECONOMIC INDICATOR ON THE JUNE 20 AGENDA
(edited by Kate Entringer)