by CORENTIN CHAPRON
PARIS (Reuters) – Wall Street is expected to be mixed on Monday, while trade in Europe is sluggish ahead of a week marked by the meeting of the European Central Bank (ECB) and a burst of data from the United States.
Futures on New York indices suggest a dispersed opening on Wall Street, with a decline of 0.21% for the Dow Jones, 0.12% for the Standard & Poor’s 500 while the Nasdaq is expected without a marked direction.
In Paris, the CAC 40 is stable at 7,934.32 points at 11:02 GMT. The Dax in Frankfurt is unchanged, while the FTSE in London falls by 0.35%.
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The pan-European FTSEurofirst 300 index and the Stoxx 600 are stagnating while the EuroStoxx 50 advances by 0.18%.
The week ahead will be rich in economic events.
In the eurozone, investors will be attentive to the next ECB meeting on Thursday. The central bank is expected to keep rates at their current levels, but comments from its president, Christine Lagarde, could provide more guidance on their future trajectory.
Wage dynamics remain the main unknown, and the impact of the latest negotiations on inflation will be closely monitored by the ECB.
In the United States, a new burst of data could qualify the latest inflation figures, which were not surprising on the rise.
The ADP report on private employment, the JOLT survey on job creations and, on Friday, the monthly report on the labor market, will allow the markets to refine their economic outlook for 2024.
The resistance of the job market is in fact one of the main factors in the resistance of the American economy to rate increases, which contributes to the persistence of inflation.
In addition, Federal Reserve Chairman Jerome Powell will speak to Congress on Wednesday and Thursday.
While financial conditions have eased significantly in the United States this year, a demand for labor that remains high could encourage the Federal Reserve to postpone its planned rate cuts.
VALUES TO FOLLOW IN WALL STREET
Semiconductor stocks are rising ahead of the open, after Dell’s latest quarterly figures reignited enthusiasm for artificial intelligence.
Super Micro Computer will enter the S&P 500 with Deckers Outdoor on Monday, March 18.
VALUES TO FOLLOW IN EUROPE
BNP Paribas advances 1.48%, at the top of the CAC 40, after announcing the launch of its share buyback program for 2024.
Ferrari falls 2.75% after Citigroup lowered its recommendation from “neutral” to “sell”, citing an expected slowdown in growth in 2024 for the Italian luxury car maker.
Atenor falls 6.15% after the Belgian real estate developer announced a larger-than-expected net loss in 2023.
DiaSorin rises 2.94% after receiving approval from the US Food and Drug Administration (FDA) for its molecular diagnostics platform.
Music investor Hipgnosis Songs Fund is down 12.20% and hitting a record low after announcing it would no longer pay dividends for the “foreseeable future.”
Softwareone loses 3.44% after its founding shareholders abandoned the buyout agreement with Bain Capital.
Henkel reported on Monday organic growth in its turnover of 4.2% in 2023, disappointing investors who are pushing the stock down 3.2%.
RATE
Yields are stable in Europe as markets position themselves ahead of the next European Central Bank meeting on Thursday.
The yield on the German ten-year rate is unchanged at 2.408%, that of the two-year rate remains at 2.8733%.
The yield on the ten-year Treasury rose 2.5 bp to 4.2072%, while the two-year rose 2.1 bp to 4.554%.
CHANGES
The pound strengthens against the dollar before the presentation of the British government’s next budget, expected on Wednesday. It gained 0.17% to 1.2672 dollars.
The greenback is unchanged against a basket of reference currencies, including the euro which gained 0.15% to 1.0853 dollars.
OIL
Crude prices are moving shortly after the widely expected decision by OPEC+ to extend the current agreement to reduce crude production until the end of the second quarter.
Brent is stable at $83.51 per barrel and American light crude (West Texas Intermediate, WTI) drops 0.18% to $79.83.
(Written by Corentin Chappron, edited by Blandine Hénault)
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