German share price index Dax graph is pictured at the stock exchange in Frankfurt
by CORENTIN CHAPRON
The main European stock markets are seen in red on Monday, the publication of PMI activity indicators during the session and the upcoming Fed meeting expected to liven up trading.
Futures contracts suggest an opening down 0.30% for the Parisian CAC 40 compared to 0.1% for the FTSE in London, a stable Dax in Frankfurt, and a drop of 0.16% for the EuroStoxx 50.
PMI indicators for the euro zone are expected from 08:15 GMT and could continue to deteriorate, a sign that activity remains constrained by past rate increases by the European Central Bank.
The manufacturing sector, in particular, remains in deep recession and still shows no signs of recovery, despite a new cut of 25 basis points decided on Thursday by the central bank.
Adding to the pressures on the European economy, retail sales in China surprised sharply on the downside in November, growing only 3% year-on-year against 4.6% expected by economists.
The Chinese central bank nevertheless declared on Saturday that the institution could reduce the required reserve ratio again in order to support credit production, giving hope for more support from Beijing for its economy.
Investors are also positioning themselves for a burst of central bank announcements which will begin on Wednesday with the Federal Reserve's decision.
The markets consider a cut of 25 basis points almost certain on this occasion but are only factoring in one rate cut of this magnitude during the next three meetings of the American central bank.
The Bank of England and the Bank of Japan are also expected this week.
VALUES TO FOLLOW:
A WALL STREET
The New York Stock Exchange ended without much change on Friday at the end of a sluggish session.
Only the Nasdaq Composite index, supported by the action of the semiconductor manufacturer Broadcom (+24%) and the enthusiasm around artificial intelligence, performed well by closing up 0.12%. , at 19,926.72 points.
The Dow Jones index fell 0.20%, or 86.06 points, to 43,828.06. The broader S&P-500 finished stable at 6,051.09 points.
The Nasdaq, which crossed the 20,000 point mark on Wednesday, ended the week up for the fourth consecutive time.
IN ASIA
The Tokyo Stock Exchange closed lower as investors remained cautious ahead of the Bank of Japan's next decision. The Nikkei index lost 0.03% to 39,457.49 points. The broader Topix lost 0.3% to 2,738.33 points.
Advantest at a price of 1.8%.
The KOSPI was volatile and ended down 0.22% after hitting a two-week high following the impeachment of President Yoon Suk Yeol on Saturday.
Chinese indices fall after the publication of a weaker than expected retail sales indicator. The Hong Kong Hang Seng index declined by 0.97%, the Shanghai SSE Composite by 0.28%, the CSI 300 by 0.67%.
RATE
The rate gap between France and Germany opens at 79.5 basis points for the 10-year rate, a one-week high after Moody's unexpected rating cut on Saturday.
The German ten-year yield is stable at 2.253%, that of the two-year rate does not vary at 2.056%.
The yield on the ten-year Treasury declined by 1.4 bps to 4.3849%, while the yield on the two-year security remained at 4.2364%.
CHANGES
The dollar is eroding but remains close to its highest levels in a year, testimony to the resilience of the American economy.
The dollar fell by 0.14% against a basket of reference currencies, the euro rose by 0.11% to $1.0514, and the pound sterling strengthened by 0.11% to $1.2632.
In Asia, the yen declined by 0.01% to 153.65 yen per dollar, the Australian dollar rose by 0.11% to 0.6368 dollars.
OIL
Oil falls on profit-taking before the Fed's next decision.
Brent fell by 0.42% to $74.18 per barrel, American light crude (West Texas Intermediate, WTI) weakened by 0.56% to $70.89.
MAIN ECONOMIC INDICATORS ON THE AGENDA OF DECEMBER 16
COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS
FR 08:15 HCOB manufacturing PMI index December 43.0 43.1
(1st estimate)
HCOB Services PMI 46.7 46.9
(1st estimate)
Indice PMI HCOB composite 45,9 45,9
(1st estimate)
FROM 8:30 a.m. HCOB manufacturing PMI December 43.1 43.0
(1st estimate)
HCOB Services PMI 49.3 49.3
(1st estimate)
Indice PMI HCOB composite 47,5 47,2
(1st estimate)
EZ 09:00 December HCOB manufacturing PMI 45.3 45.2
(1st estimate)
HCOB Services PMI 49.5 49.5
(1st estimate)
Indice PMI HCOB composite 48,2 48,3
(1st estimate)
GB 09:30 S&P/CIPS PMI December 48.2 48.0
manufacturer (1st
estimation)
Indice PMI S&P/CIPS des 51,0 550,8
services (1re estimation)
Indice PMI S&P/CIPS composite 50,7 50,5
(1st estimate)
USA 1:30 p.m. Activity index “Empire December 12.0 31.2
state”
USA 2:45 PM S&P Global PMI Index December 49.8 49.7
manufacturer (1st
estimation)
Indice PMI S&P Global des 55,7 56,1
services (1re estimation)
S&P Global PMI Index nd 54.9
composite (1re estimation)
(Written by Corentin Chappron, edited by Augustin Turpin)
