File photo of the London Stock Exchange Group in the City of London
The main European stock markets are expected to rise at the opening on Monday, with markets preparing for a week full of publications and monetary policy events.
Futures contracts suggest an opening increase of 0.54% for the Parisian CAC 40, compared to 0.19% for the FTSE in London, 0.74% for the Dax in Frankfurt, and 0.78% for the EuroStoxx 50.
Markets are expected to position themselves on Monday for many events later in the week, with no indicator releases or monetary policy statements expected today.
Only the President of the European Central Bank, Christine Lagarde, will speak at 10:00 GMT on the global economy, during a round table in Davos.
On Tuesday, the Bank of Japan will announce its next monetary policy decision, and is expected to maintain its current rate and curve control policy, according to market expectations.
PMI indicators for the euro zone will be released on Wednesday, which could show that the contraction in activity continues in January in the currency bloc.
The ECB’s decision on its rates is expected on Thursday: if the central bank is expected to maintain its monetary policy at its current level, investors will be attentive to Christine Lagarde’s statements, which could help clarify the date of the first rate cut.
On Friday, PCE inflation in the United States for December will finally be published, the indicator followed by the Federal Reserve to gauge the effectiveness of its monetary policy, while the latest CPI inflation figure had surprised on the rise.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended higher on Friday, as the technology sector benefited from optimism over artificial intelligence.
The Dow Jones index gained 1.05%, or 395.19 points, to 37,863.8 points. The broader S&P-500 gained 58.87 points, 1.23%, to 4,839.81 points. The Nasdaq Composite advanced 255.32 points (1.70%) to 15,310.97 points.
IN ASIA
The Tokyo Stock Exchange ended higher on Monday, with the record close of the American S&P 500 index on Friday boosting investor morale, despite persistent signs of overheating in the Asian market. The Nikkei index gained 1.62% to 36,546.95 points and the broader Topix gained 1.39% to 2,544.89 points.
Investor SoftBank gained 2.41%, while chip test equipment maker Advantest <6857.T,> which counts Nvidia among its clients, climbed 3.52%.
Chinese markets closed lower, as foreign investors continued to exit Chinese stocks in an increasingly deteriorating economic context. The Shanghai SSE Composite lost 2.68%, the CSI 300 1.56%. The Hong Kong Hang Seng index fell 2.72%.
RATE
US yields are falling after rising 16 basis points last week and following encouraging comments from Fed Board of Governors member Mary Daly on Friday.
The ten-year Treasury yield fell by 2.5 bps to 4.1206%, while the two-year rate was stable at 4.406%.
The yield on the German ten-year rate is standing still at 2.302%, while that of the two-year rate is down 1.9 bp at 2.71%.
CHANGES
Foreign exchange markets are calm ahead of a busy week.
The dollar declined by 0.08% against a basket of reference currencies, while the euro gained 0.06% to 1.0903 dollars, and the pound sterling 0.07% to 1.2709 dollars.
In Asia, the yen strengthened by 0.08% to 148.02 yen per dollar, while the Australian dollar fell by 0.18% to 0.6585 dollars.
OIL
Oil is eroding despite geopolitical tensions as markets worry about the global economic outlook.
Brent declined 0.53% to $78.14 per barrel, with light American crude (West Texas Intermediate, WTI) losing 0.38% to $73.13.
NO MAJOR ECONOMIC INDICATORS EXPECTED ON JANUARY 22
(Written by Corentin Chappron, edited by)