by Augustin Turpin
(Reuters) – Wall Street is expected to fall on Monday and European stock markets are hesitant at mid-session, before a hearing by the President of the European Central Bank (ECB) Christine Lagarde in the European Parliament and the publication of key data on inflation later this week.
New York index futures signal Wall Street opening down 0.12% for the Dow Jones, 0.12% for the Standard & Poor’s-500 and 0.07% for the Nasdaq.
Wall Street ended Thanksgiving week on a positive note, with major indexes posting their fourth consecutive week of gains, buoyed by growing optimism that the Fed is likely to end its interest rate hikes.
“Usually, after Thanksgiving, there is profit taking because volumes are low,” observes Axel Rudolph, analyst at IG Group.
“But until the end of the year, we generally have, from a seasonality point of view, an upward trend in the equity market.”
The PCE consumer price index in the United States is expected on Thursday and investors will also follow the interventions of members of the Fed’s board of governors, including that of Jerome Powell, the president of the institution, expected on Friday.
In Paris, the CAC 40 lost 0.07% to 7,287.56 around 1:43 p.m. GMT. In Frankfurt, the Dax lost 0.2% and in London, the FTSE 0.31%.
The pan-European FTSEurofirst 300 index is down 0.19%, the Eurozone EuroStoxx 50 is down 0.14% and the Stoxx 600 is down 0.16%.
In Europe also, investors remain cautious ahead of ECB President Christine Lagarde’s comments before the European Parliament’s Economic and Monetary Affairs Committee at 2:00 p.m. GMT and as the week is expected to see the release of crucial data for the trajectory of rates , including inflation in the euro zone on Thursday.
VALUES TO FOLLOW AT WALL STREET
In the United States, the market will be monitoring AMAZON.COM in particular, the group having avoided a strike in Spain on Monday which could have taken place during one of the busiest days of the year.
VALUES IN EUROPE
The satellite company Eutelsat lost 4.8% after Goldman Sachs lowered its recommendation to “neutral”, while the collective catering group Elior gained 1.75% thanks to the increase in Deutsche Bank’s recommendation to “buy”. “.
French drugmaker Valneva advances 1.27% after declaring that the marketing authorization application for its chikungunya vaccine candidate has been accepted by the European Medicines Agency (EMA).
Sanofi takes 1% as the group plans to request American market authorization for its best-selling anti-inflammatory, Dupixent, for the treatment of “smoker’s lung”, also known as COPD , after a second large trial showed significant improvements in patients.
RATE
The German ten-year yield lost seven basis points (bp) to 2.593%, ahead of Christine Lagarde’s speech and data on euro zone inflation expected later in the week.
“We advise investors to keep their cool as the outlook for monetary policy continues to evolve,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
The yield on ten-year US Treasury bonds fell two basis points to 4.4684%.
CHANGES
A wait-and-see attitude predominates on currencies: the dollar falls by 0.12% against a basket of reference currencies, while the euro gains 0.13% to $1.0953.
OIL
Oil prices are falling before the next OPEC+ meeting on Thursday and possible announcements on a reduction in production until 2024.
Brent dropped 1.2% to $79.61 per barrel and American light crude (West Texas Intermediate, WTI) lost 1.26% to $74.59.
(Written by Augustin Turpin, edited by Blandine Hénault)
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