by Diana Mandia
(Reuters) – Wall Street is expected to fall on Monday and European stock markets retreat mid-session on profit-taking, particularly in the technology and basic resources sectors, and before the publication of several indicators during the week, including American inflation.
New York index futures signal Wall Street opening down 0.21% for the Dow Jones, 0.13% for the Standard & Poor’s-500 and 0.18% for the Nasdaq.
In Paris, the CAC 40 lost 0.24% to 8,008.54 around 11:31 GMT. In Frankfurt, the Dax lost 0.54% and in London, the FTSE lost 0.38%.
The pan-European FTSEurofirst 300 index fell by 0.35%, the Eurozone EuroStoxx 50 by 0.51% and the Stoxx 600 by 0.35%.
European stock markets started the week cautiously after recent record highs in indices including the CAC 40, with investors turning away from risk assets ahead of US inflation on Tuesday, and after a report last Friday showed that , despite the unexpected rise in the unemployment rate, job creation in the United States was stronger than expected in February.
“Friday’s strong US jobs report reinforced the feeling that tomorrow’s inflation number will be a bit higher and that’s another reason why European assets fell a bit this morning,” he said. says Ben Laidler, analyst at eToro.
Investors will also be looking at UK inflation and Eurozone industrial production figures this week for further clues on the evolution of inflationary pressures and the timing of interest rate cuts, as several Central bankers have recently opened the way to easing their monetary policy.
According to Peter Kazimir, member of the governing council of the European Central Bank (ECB), the Frankfurt institution is increasingly confident in the slowdown in inflation, but it should still refrain from lowering its interest rates. interest until June.
The markets are indeed forecasting a first rate cut from the ECB in June, followed by three others between now and December.
In the United Kingdom, UBS Global Research on Monday pushed back its forecast for a BoE rate cut from May to August and now says it expects a reduction of 25 basis points in August, compared to a first cut previously expected for May.
VALUES TO FOLLOW AT WALL STREET [L5N3FP393]
Futures are signaling an opening in the red on Monday after the mixed jobs report.
Boeing lost 1% in pre-market trading after information that a Boeing 787-9 Dreamliner operated by Latam Airlines encountered a “technical problem” in flight.
VALUES IN EUROPE
The basic resources index, which includes assets sensitive to the dollar and bond yields, recorded the biggest decline in the Stoxx 600 and fell 1.62% ahead of US inflation.
The technology sector for its part is down 1.29%, in the wake of the Nasdaq and the continuation of profit taking on Nvidia, and also weighed down by the drop of 6.5283% in the shares of BE Semiconductor Industries .
At values, Sanofi takes 0.76% after positive clinical results on amlitelimab in the treatment of atopic dermatitis. The laboratory is also benefiting from the positive trend in defensive compartments, notably that of health .SXDP (+0.25%).
Telecom Italia (TIM), whose shares were hit last week by the lack of details on its financial accounts, turned lower and lost 3% after the operator specified that its net debt would rise to around 7.5 billion euros by the end of the year.
RATES Bond yields in the euro zone were stable on Monday after suffering their biggest weekly drop last week since December, comments from central bankers having left the door open to a future rate cut.
The yield on the German ten-year rate stands at 2.268%, and that on the two-year rate at 2.7555%.
The American bond markets are also stable, with the yield on the ten-year rate moving to 4.0807%, and the two-year rate at 4.4983%.
EXCHANGES The dollar, which fell by more than 1% last week, is stable against a basket of reference currencies, while the euro nibbles 0.02% to 1.0939 dollars.
OIL
Oil prices fell on Monday, extending last week’s losses due to concerns about slowing demand in China, although geopolitical risks linked to the Middle East and Russia limit the decline.
Brent fell 0.41% to $81.74 per barrel, with American light crude (West Texas Intermediate, WTI) losing 0.45% to $77.66 CLc1.
NO MAJOR ECONOMIC INDICATOR ON THE AGENDA FOR MARCH 11
(Some data may have a slight lag)
(Writing by Diana Mandiá, editing by Kate Entringer)
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