PARIS (Reuters) – Wall Street is expected to be hesitant on Monday, while the European stock markets are scattered mid-session, waiting before a burst of data this week.
Futures on New York indices suggest a mixed opening on Wall Street, with the Dow Jones, the Standard & Poor’s 500 and the Nasdaq not showing any marked direction.
In Paris, the CAC 40 advanced 0.43% to 7,680.72 points around 11:25 GMT. The Dax in Frankfurt gained 0.45%, against a stable FTSE in London.
The pan-European FTSEurofirst 300 index rose by 0.31%, compared to 0.32% for the EuroStoxx 50 and 0.35% for the Stoxx 600.
US markets are consolidating after the S&P 500 hit a record high on Friday, surpassing 5,000 points despite a Federal Reserve determined to keep rates at restrictive levels for as long as necessary to bring inflation back to target.
The good performance of the American markets supports the European indices.
The CPI inflation data in the United States, expected on Tuesday, will be crucial for the market scenario, which is betting on a “soft landing” for the economy – inflation which would fall to 2% without causing unemployment to rebound.
On Monday, the governor of the International Monetary Fund, Kristalina Georgieva, indicated that she favored such a scenario for the global economy.
After a week poor in macroeconomic data, the numerous indicators expected in the coming days could liven up trade: in the United States, retail sales, producer prices and the sentiment indicator from the University of Michigan will be expected this week.
In the euro zone, GDP in the fourth quarter, industrial production on Wednesday, and final French inflation for January on Friday, could modify the markets’ expectations of monetary easing for 2024.
The results will also liven up trade in Europe, with many groups in the euro zone due to publish their quarterly accounts in the coming days.
VALUES TO FOLLOW IN WALL STREET
Diamondback Energy announced Monday the purchase of Endeavor Energy Resources, the largest unlisted oil and gas producer in the Permian Basin, in a cash-and-stock deal worth approximately $26 billion, including debt. .
VALUES TO FOLLOW IN EUROPE
Stellantis, which is due to publish its quarterly results on Thursday, takes 0.87% while the battery manufacturer ACC, of which it is a shareholder, announced on Monday the completion of major financing for the development of its three European “gigafactories”.
The listing of Believe is suspended after the digital music group announced that it had received a purchase offer from a consortium. The stock was up 9.7% before the open.
L Catterton announced a takeover bid for Tod’s shares with a view to delisting the stock, which increases the Italian group by 17.99%.
Saras lost 5.04% after the Moratti family announced the sale of 35% of the capital to the raw materials trading group Vitol at a price of 1.75 euros per share.
Delivery groups jump after a note from Deutsche Bank, which says it is “more optimistic” about the sector. Just Eat Takeaway.com takes 6.49%, compared to 2.09% for Deliveroo and 5.95% for Delivery Hero.
RATE
European yields are down slightly ahead of a week full of essential indicators for the trajectory of rates.
The yield on the ten-year Treasury lost 2.5 bps to 4.1618%, while the two-year fell by 1.8 bps to 4.4696%.
The German ten-year yield weakened by 4.2 bp to 2.338%, that of the two-year rate lost 3.3 bp to 2.69%.
CHANGES
Currency traders are waiting and the currencies vary little.
The dollar is stable against a basket of reference currencies, the euro loses 0.13% to 1.0768 dollars, and the pound sterling loses 0.07% to 1.2617 dollars.
OIL
Oil is falling after posting a weekly gain of almost 6%, as markets digest the latest developments in the situation in the Middle East.
Brent declined 0.88% to $81.47 per barrel, American light crude (West Texas Intermediate, WTI) dropped 0.77% to $76.25.
NO MAJOR ECONOMIC INDICATORS THIS MONDAY
(Written by Corentin Chappron, edited by Kate Entringer)
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