by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to fall slightly at the opening on Monday and the European stock markets, apart from Frankfurt, are also falling mid-session in a consolidation movement after the recent record highs of the indices against a backdrop of enthusiasm for artificial intelligence following Nvidia’s prospects. New York index futures signal Wall Street opening down 0.1% for the Dow Jones, 0.08% for the Standard & Poor’s 500 and 0.07% for the Nasdaq. In Paris, the CAC 40, which is now aiming for the symbolic mark of 8,000 points after its Friday record of 7,976.4 points, lost 0.28% to 7,944.06 around 12:15 GMT. In Frankfurt, the Dax, which also recorded an unprecedented high on Friday at 17,443.74 points, gained 0.06%. In London, the FTSE lost 0.25%.
The pan-European FTSEurofirst 300 index fell by 0.19% and the eurozone’s EuroStoxx 50 by 0.12%. The Stoxx 600, which reached a historic high of 497.74 points on Friday, fell by 0.23%.
The market rally accelerated last week after the publication of Nvidia’s quarterly accounts which reported last Wednesday a turnover forecast above expectations for the current quarter.
The semiconductor manufacturer, which is banking on solid demand for its chips used in artificial intelligence (AI), allowed the S&P 500 and Dow Jones indices to record respective records on Friday at 5,111.06 points and 39,282, 28 points, while the Nasdaq moved closer to its peak of November 22, 2021, at 16,212.22 points.
As the fourth quarter earnings season draws to a close, investors are taking profits and are now turning their attention to economic indicators that could influence the path of central bank rates. In this regard, Thursday’s publication of the monthly PCE price index in the United States, the Fed’s preferred measure of inflation, is particularly awaited.
In the euro zone, preliminary inflation figures for the month of February will be known on Friday. VALUES TO FOLLOW AT WALL STREET
Berkshire Hathaway gained 5% in pre-market trading, as Warren Buffett’s group reported record operating profit of $37.4 billion in 2023, thanks in particular to its insurance activities.
VALUES IN EUROPE
The basic resources sector (-2.08%) and the energy compartment (-1.06%) are among the largest sectoral declines on the Stoxx 600 in the wake of the decline in metals and oil against a backdrop of The strengthening of the dollar, the hope of a rapid reduction in interest rates from central banks is fading.
In terms of values, Tele2 climbed 8.49%, with Iliad and Xavier Niel having announced a 19.8% stake in the Swedish telecoms operator for 13 billion crowns (1.16 billion euros).
Zealand Pharma soars 30.86%, leading Stoxx 600, its experimental treatment against obesity, developed in partnership with Boehringer Ingelheim, having obtained phase II trial results presented as “revolutionary” in the treatment hepatic steatosis.
On the downside, Bank of Ireland fell 10.53% after the banking group announced financial forecasts for the current year that were lower than expected, which took precedence over its proposal to pay shareholders a sum of 1.15 billion euros.
RATES The yield on ten-year US Treasury bonds fell slightly, by a little more than one basis point, to 4.2441% while the day will be marked by significant debt issues.
That of the German Bund of the same maturity advances by almost two basis points, to 2.378%, after losing seven points on Friday.
Markets expect the European Central Bank (ECB) to cut rates by 25 basis points in June and no longer expect a reduction in April.
EXCHANGES The dollar fell slightly (-0.19%) against a basket of reference currencies pending the publication of several macroeconomic indicators this week.
The euro is trading at 1.0849 dollars (+0.29%) and the pound sterling at 1.2691 (+0.09%).
OIL
The oil market is losing ground with the ebbing of expectations of a reduction in key rates from the American Federal Reserve, which could weigh on demand for crude: Brent lost 0.53% to 81.19 dollars per barrel and light crude American (West Texas Intermediate, WTI) 0.46% to 76.14 dollars.
NO ECONOMIC INDICATOR ON TODAY’S AGENDA
(Written by Claude Chendjou, edited by Sophie Louet)
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