by Marc Angrand
PARIS (Reuters) – Wall Street is expected in the green and European equities hit new all-time highs on Monday, with 2022 starting off as the previous one ended for investors, who continue to favor the outlook for an economic recovery over markets. current health concerns.
Futures on major New York indices are signaling an open up 0.54% for the Dow Jones, 0.65% for the Standard & Poor’s 500 and 0.74% for the Nasdaq.
In Paris, the CAC 40 gained 1.2% to 7,238.98 points around 11:45 GMT after a record at 7,245.66 and in Frankfurt, the Dax advanced by 0.94%.
The EuroStoxx 50 index rose 1.08%, the FTSEurofirst 300 0.69% and the Stoxx 600 0.66%, after an all-time high of 491.26 points.
The London Stock Exchange remains closed to extend the New Years weekend.
The Stoxx 600 gained 22.5% over the whole of 2021, its third consecutive year of increase, and the CAC 40 gained 28.9%, its best annual performance since 1999, benefiting from the economic recovery and progress in vaccination against COVID-19 even if the last sessions of the year were marked by questions related to the Omicron variant of the coronavirus.
The sustained start on Monday for continental European equities is based, among other things, on the still solid figures of the manufacturing PMI indices in the euro zone, which reflect a continued rebound in activity and a beginning of a decline in the tensions affecting the euro area. supply chains.
The first session of the year was not favorable to all markets, however, as the Hong Kong Stock Exchange lost 0.53% after the announcement of the suspension of the quotation of the troubled real estate developer Evergrande.
VALUES IN EUROPE
Almost all of the major sectors of the European quotation turned green at mid-session, the best performances being for the automotive compartment, for which the Stoxx index rose 2.2% and that of distribution (+1, 30%).
The only decline is for health and does not exceed 0.11%.
In Paris, the best performance of the CAC 40 is for L’Oréal (+ 2.97%) but Michelin, Renault and Stellantis are gaining between 2.4% and 2.8%.
Air France-KLM (+ 4.93%) and Lufthansa (+ 6.34%) are also benefiting from the increase in Citigroup’s recommendations on several air transport stocks, the American bank counting on an outperformance of specialists in long-haul flights .
Among the losers of the day, Iveco (-9.84%) suffered for its first trading session after the split of CNH Industrial.
RATE
The appetite for risky assets is detrimental to government bonds, resulting in a rise in US yields: that of ten-year Treasury bills takes more than three basis points to 1.5377%.
Its German counterpart rose in the morning to -0.138%, its highest level since November 2, before falling back to -0.171%.
CHANGES
Trending upward at the start of the day, the dollar is now losing ground against other major currencies (-0.22%) in volumes reduced by the absence of some investors, especially in London.
The euro fell against the greenback at $ 1.1353 after hitting a six-week high at 1.1386 on Friday.
OIL
The oil market is up sharply after the announcement of a temporary decrease in Libyan supply, added to the hopes that demand will continue to rebound.
Brent gained 1.17% to 78.69 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.04% to 75.99 dollars.
Libya’s crude supply will be reduced by 200,000 barrels per day (bpd) for a week due to maintenance work on an oil pipeline. The market is also awaiting the OPEC + meeting on Tuesday on its production strategy.
NO MAJOR US ECONOMIC INDICATOR ON TODAY’S AGENDA
(Report Marc Angrand, edited by Blandine Hénault)
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