by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to rise slightly on Monday at the opening and the European stock markets consolidate at mid-session after their records on Friday in a wait-and-see context ahead of inflation indicators in the euro zone and the United States. States planned for the week.
New York index futures signal Wall Street opening up 0.06% for the Dow Jones, 0.12% for the Standard & Poor’s 500 and 0.20% for the Nasdaq.
In Paris, the CAC 40, which recorded a session record of 8,259.19 points on Friday, lost 0.17% to 8,204.98 points around 10:20 a.m. GMT. In Frankfurt, the Dax fell by 0.20% after a historic peak on Friday at 18,845.86 points. In London, the FTSE is nibbling 0.03% after also reaching a peak last week at 8,455.77 points.
The pan-European FTSEurofirst 300 index, which rose to an unprecedented peak on Friday at 2,067.24 points, fell by 0.04%. The EuroStoxx 50 in the euro zone lost 0.21%. The Stoxx 600 declined by 0.02% after its all-time high of 521.51 points, reached on Friday. The main pan-European index gained 3% last week, its best weekly performance since the end of January, thanks in particular to solid company results.
Trade is on a hesitant note on Monday while the producer price index (PPI) will be published in the United States on Tuesday and the consumer price index (CPI) for the month of April on Wednesday, while An intervention by the Chairman of the American Federal Reserve (Fed), Jerome Powell, is expected on Tuesday at 2:00 p.m. GMT.
“The CPI is a very important and polarizing event for the entire market,” notes Francesco Pesole, strategist at ING.
In the Eurozone, Germany will publish the final inflation figures for the month of April on Tuesday before those for the entire eurozone on Friday.
These statistics are important in anticipations of the evolution of interest rates, the European Central Bank (ECB) being likely to lower its borrowing costs from June and the Fed in September, while some operators fear a maintaining high rates over a long period.
On the Stoxx 600, the automotive sector (+0.82%) dominates, while that of construction and materials (-0.75%) shows one of the biggest declines before the product is published on Wednesday. gross domestic product (GDP) of the first quarter in the euro zone.
VALUES TO FOLLOW AT WALL STREET
Alphabet lost 1.8% in pre-market trading as OpenAI, the creator of ChatGPT, is expected to present this Monday an internet search engine service based on artificial intelligence (AI), in order to compete with Google Search. Microsoft, which supports the start-up, gains 1.1% before the opening in New York.
VALUES IN EUROPE
Sanofi advances 1.68% after Monday’s announcement of an additional investment of 1.1 billion euros in the production of drugs in France.
AP Moeller-Maersk jumped 7.14%, boosted by a rise in freight rates amid increasing trade volumes and the Red Sea crisis.
Ceconomy gained 2.06% thanks to the publication by the German consumer electronics group of an annual profit forecast higher than expectations.
RATE
Sovereign yields in the Eurozone are falling slightly, with investors currently anticipating a cut in ECB interest rates of around 70 basis points this year. The ten-year German Bund yield stands at 2.502%, down 1.8 basis points.
In the United States, the yield on ten-year Treasury bonds lost around two points, to 4.4845%.
CHANGES
The foreign exchange market is calm before the American indicators, with the dollar varying little (-0.07%) against a basket of reference currencies, after posting its first weekly gain last week in three weeks.
The euro advanced 0.12% to $1.0782 and the pound sterling nibbled 0.06% to $1.2531.
OIL
Oil prices rose slightly in a volatile session between fears about weak demand for crude and geopolitical tensions, particularly in the Middle East.
Brent gained 0.16% to $82.92 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.24% to $78.45.
(Writing by Claude Chendjou, edited by Kate Entringer)
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