Futures on New York indices suggest Wall Street opening in the green, with the Dow Jones rising 0.22%, while the Standard & Poor’s 500 takes 0.25% and the Nasdaq 0.22%.
In Paris, the CAC 40 advanced 0.6% to 8,005.69 points around 11:55 GMT. The Dax in Frankfurt rose 0.64%. The FTSE in London is closed for a public holiday.
The pan-European FTSEurofirst 300 index rose by 0.44%, compared to 0.63% for the EuroStoxx 50 and 0.51% for the Stoxx 600.
The US jobs report released on Friday brought relief to investors as tensions in labor markets dissipated in April.
European markets welcome the final PMI indicators published on Monday, which show that the recovery dynamic in the euro zone is a little stronger than initially announced.
Eurozone business activity grew in April at its fastest pace in almost a year, thanks to a vigorous recovery in the services sector.
Furthermore, the producer price indicator rose in line with expectations, reassuring about price dynamics in the bloc, while the Sentix index, which measures investor sentiment, signals an improving outlook.
The week will be poor in data, and the markets will focus above all on the decision of the Bank of England, expected on Thursday, as well as on the latest results publications. Figures from Siemens, Bouygues, or UBS are expected in the coming days.
“Over the coming weeks, after the quarterly publications, the equity markets should evolve according to macroeconomic data (…). In this phase, if a slight recovery does indeed seem to be taking shape, it appears fragile in an environment that is still very uncertain,” explains Gilles Guibout, head of European equities at AXA IM.
“With a valuation close to long-term average levels, it seems more essential than ever to maintain good diversification,” adds the manager.
The markets also welcome the latest developments in China, while the politburo of the Chinese Communist Party declared last week that it would strengthen its support for the country’s economy.
Data published on Monday also showed that activity in the services sector continued to expand in April, with leading indicators raising hopes of a continued rebound in the long term.
VALUES TO FOLLOW IN WALL STREET
Berkshire Hathaway reported record quarterly profit on Saturday, supported by a significant increase in revenue from insurance underwriting.
The group nevertheless announced that it had reduced its stake in Apple by 13%, shedding around 115 million shares.
VALUES TO FOLLOW IN EUROPE
Atos is volatile after announcing on Monday that it had received four proposals from different investors as part of its restructuring procedure. The stock fell 2.9%.
Teleperformance is at the top of the CAC 40 and is up 5.79% after encouraging comments from analysts, with Stiefel particularly welcoming the group’s latest results.
Maurel et Prom climbs 8.49% after receiving an OFAC license from the US Department of the Treasury for its operations in Venezuela.
Eutelsat Communications confirmed on Monday that it was studying partnership possibilities with investors in infrastructure for its terrestrial network, and fell 1.92%.
PostNL reported a loss for its normalized earnings before interest and taxes for the first quarter on Monday, losing 4.19%.
RATE
Yields decline moderately after the latest indicators published on both sides of the Atlantic.
The German ten-year yield weakened by 6.4 bp to 2.446%, that of the two-year rate lost 4.6 bp to 2.889%.
The yield on the ten-year Treasury fell 2.5 bp to 4.4752%, while the two-year fell 2.2 bp to 4.7845%.
CHANGES
The pound sterling is strengthening ahead of the Bank of England’s next monetary policy decision, expected on Thursday, which is expected to keep rates at their current levels.
The dollar advanced 0.05% against a basket of reference currencies, the euro gained 0.1% to $1.0769, and the pound sterling strengthened by 0.27% to $1.2578.
OIL
Crude is rising after Saudi Arabia raised its oil prices for June for most of its customers, while negotiations between Israel and Hamas appear to have stalled.
Brent nibbles 0.71% to 83.55 dollars per barrel, American light crude (West Texas Intermediate, WTI) advances 0.88% to 78.8 dollars.
(Written by Corentin Chappron, edited by)
