Outside the New York Stock Exchange (NYSE)
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by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to open with weak variations on Monday and the main stock markets in Europe are up slightly at mid-session, the improvement in equity markets at the end of last week cautiously extending pending the release of US inflation data on Wednesday.
Futures on New York indices signal an opening on Wall Street up 0.23% for the Dow Jones, 0.19% for the Standard & Poor’s 500, while the Nasdaq could fall 0.03%.
Despite the May 8 commemorations, several financial markets are open, notably in Paris, where the CAC 40 advances by 0.3% to 7,454.88 points around 12:00 GMT. In Frankfurt, the Dax took 0.2%, the gains being more reduced after the publication of German industrial production figures which showed a decline of 3.4% in March, against a backdrop of weakness in the automotive sector. The London Stock Exchange, closed for a public holiday in honor of the coronation of Charles III, will reopen on Tuesday.
The pan-European FTSEurofirst 300 index gained 0.37%, the euro zone EuroStoxx 50 0.32% and the Stoxx 600 0.41%.
After Friday’s monthly US jobs report showed resilience in the labor market, easing the specter of a recession but rekindling the prospect of further monetary tightening, markets are awaiting price data on Wednesday. consumer monthly in the United States.
The Reuters consensus expects inflation to accelerate to 0.4% month on month in April, which Mark Haefele, chief investment officer at UBS Global Wealth Management, said should not favor the scenario of a rate cut at the end of the year. year, anticipated by some investors.
Prior to that, the market will take note of the Federal Reserve’s (Fed) quarterly bank lending survey, which should provide some insight into the impact of rising interest rates as the banking sector, particularly in the regional banks, remains under pressure in the United States. US wholesaler inventory data, due at 14:00 GMT, is also one to watch.
In today’s statistics in Europe, investor sentiment in the euro zone has deteriorated against all expectations since the beginning of May (-13.1 points) in a context of persistent inflation and concerns about the energy file, according to the monthly survey by the Sentix Institute.
WALL STREET VALUES TO FOLLOW
US regional banks rebounded in the forefront after a tumultuous week marked by the collapse of First Republic Bank, acquired by JPMorgan Chase. Pacwest soars 36% in foreclosure after the bank announced a quarterly dividend payment, while Western Alliance Bancorp, Comerica, Zions Bancorp, First Horizon and Keycorp rose 3.5% to 8, 6%.
VALUES IN EUROPE
In Europe, the banking sector (+0.83%) also stands out, notably with Crédit Agricole (+1.13%).
The Basic Resources (+0.56%) and Energy (+1.18%) sectors also rose as fears of a recession receded with the US jobs report. ArcelorMittal advances by 3.47% and TotalEnergies takes 1.15%.
In the news of listed companies, Vivendi fell 0.42% despite the green light from Spain to increase the French company’s stake in the Spanish media group Prisa. Vallourec, which has obtained an authorization in Brazil for the resumption of operation of its iron mine in Pau Branco, jumped 4.76%.
Olympique Lyonnais action is suspended as the football club announced on Monday the departure of its emblematic president, Jean-Michel Aulas.
In Italy, Monte Dei Paschi Di Siena (MPS) gained 6.01% as the Treasury was ready to reduce its stake in the bank, sources said.
PostNL climbed 7.25% after reporting a surprise first-quarter operating profit.
RATE
Bond yields in Europe are rising in the prospect of further monetary tightening: the German ten-year advance by four basis points, to 2.333%, while Klaas Knot, a member of the European Central Bank (ECB), estimated during over the weekend that further rate hikes would be needed to contain inflation.
The yield of the ten-year American takes more than three points, to 3.4881% while the Secretary of State for the Treasury, Janet Yellen, again warned Congress on Sunday against a “constitutional crisis” if it does not does not affect the debt ceiling.
CHANGES
The dollar, which last week posted a weekly loss, fell 0.07% against a basket of benchmark currencies on Monday, with the greenback remaining under pressure ahead of the release of the Fed’s survey on bank loans.
The euro is trading at 1.103 dollars (+0.11%).
OIL
Oil prices are supported by easing fears of a recession: Brent is up 2.50% at $77.18 a barrel and US light crude (West Texas Intermediate, WTI) 2.85% at 73, $37.
The two benchmarks lost 7.1% and 5.3% respectively last week.
NO MORE ECONOMIC INDICATOR ON TODAY’S AGENDA
(Written by Claude Chendjou, edited by Laetitia Volga)