Market: Wall Street uncertain view, China questions

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PARIS (Reuters) – Wall Street is expected to be uncertain on Monday, while European stock markets hesitate at mid-session, the latest Chinese announcements having disappointed investors while the next meeting of the European Central Bank calls for caution.

New York index futures suggest a directionless opening on Wall Street, with the Dow Jones down 0.13%, while the Standard & Poor’s 500 is up 0.2% and the Nasdaq is up 0. 33%.

In Paris, the CAC 40 fell by 0.39% to 7,548.47 points around 10:55 GMT. The Dax in Frankfurt strengthened by 0.2%, while the FTSE in London declined by 0.1%.

The pan-European FTSEurofirst 300 index lost 0.05%, the EuroStoxx 50 fell by 0.07% and the Stoxx 600 declined by 0.13%.

The markets are hesitant after the latest announcements made in China, with Beijing having unveiled on Saturday a vast recovery and support plan for consumption and the real estate sector.

The real estate sector, which represented up to a third of Chinese economic activity, has been at a standstill for several years and burdened by a significant volume of debt.

Consumer morale, which is very low, is also weighing on domestic demand and forcing China to turn abroad to sell its significant industrial production.

The absence of details and concrete measures, however, worries investors, who doubt the economic impact of the new support plan: precise figures will only be communicated at the end of the month.

Furthermore, the European Central Bank will meet on Thursday and is expected to lower its rates, according to monetary market expectations. The decline in inflation and the weakness of European activity indeed call for monetary support.

VALUES TO FOLLOW IN WALL STREET

Boeing announced on Friday the elimination of 17,000 jobs, or 10% of its workforce, and the postponement of the first deliveries of its 777X for a year, citing financial difficulties linked to the strike by employees of its coastal assembly plants. Western United States.

Chinese stocks listed in the United States decline before the opening, as investors worry about the growth prospects of the world’s second largest economy.

VALUES TO FOLLOW IN EUROPE

The luxury sector, particularly exposed to China, is in decline. LVMH, which will publish its quarterly results on Tuesday, Hermès and even Kering lost between 2% and 4%.

Pluxee lost 5.5% after Goldman Sachs lowered its recommendation on the stock to “sell”.

Mulberry gains 13.3% after saying it is working with advisers to assess Frasers’ new takeover offer.

Ashmore reported on Monday an increase in its assets under management, driven by positive investment performance to 3.2 billion dollars (2.93 billion euros), which increases the stock by 6.9 %.

The raw materials sector posted the worst sectoral performance of the Stoxx 600 index, down 1.23%, as investors worried about the outlook for Chinese demand.

RATE

European rates vary little, while American sovereign markets are closed on Monday.

The German ten-year yield is stable at 2.27%, that of the two-year rate loses 1.1 bp to 2.249%.

CHANGES

The dollar is up slightly, benefiting from its status as a safe haven asset in an uncertain context.

The dollar gained 0.17% against a basket of reference currencies, the euro eroded by 0.11% to 1.0925 dollars, and the pound sterling lost 0.16% to 1.3045 dollars.

OIL

The barrel is falling sharply, with investors fearing that the latest measures announced by Beijing will not be enough to revive demand in the world’s second largest economy.

Brent fell by 2.15% to $77.34 per barrel, American light crude (West Texas Intermediate, WTI) weakened by 2.3% to $73.82.

(Written by Corentin Chappron, edited by Sophie Louet)

Copyright © 2024 Thomson Reuters

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