A trader sits in front of computer screens at his desk at the Frankfurt Stock Exchange
by Claude Chendjou
Wall Street is expected to rise slightly on Monday, while the European stock markets decline moderately mid-session in an overall context of wait-and-see attitude on the markets, with several major central banks due to make their respective monetary policy decisions this week. New York index futures signal Wall Street opening up 0.18% for the Dow Jones, 0.22% for the Standard & Poor’s 500 and 0.35% for the Nasdaq. In Paris, around 1:00 p.m. GMT, the CAC 40 fell by 0.95% to 7,339.37 points, further behind other European markets while the rating agency Moody’s lowered France’s credit rating, while the new Prime Minister, François Bayrou, has started consultations with representatives of the parliamentary groups.
In Frankfurt, the Dax fell 0.32% as German Chancellor Olaf Scholz requested a vote of confidence from the Bundestag. In London, the FTSE lost 0.29%.
The pan-European FTSEurofirst 300 index lost 0.22% and the eurozone’s EuroStoxx 50 lost 0.55%. The Stoxx 600 dropped 0.36%, heading towards a third session in the red. It is weighed down by food and beverage stocks (-1.04%) and automobiles (-2.90%), while the defensive health sector (+0.42%) offers a little support.
Investors mainly look to central banks to determine the trajectory of interest rates.
The US Federal Reserve (Fed) meets for two days on Tuesday, while monetary policy decisions from the Bank of England (BoE), the Bank of Norway and the Bank of Japan (BoJ) are expected on Thursday.
“The main focus will be on the Fed, which is widely expected to cut rates by 25 basis points, but we believe it will tone down its outlook for further rate cuts,” the authors wrote. SEB analysts.
In the euro zone, Luis de Guindos, vice-president of the European Central Bank (ECB), declared Monday that the Frankfurt institution was convinced that inflation would converge towards the objective of 2% in 2025. Christine Lagarde, the President of the ECB, for her part, said that further rate cuts were possible if inflation continued to slow down.
In today’s indicators, the decline in private sector activity in the euro zone eased in December, with the services sector returning to growth, shows the S&P Global PMI survey. The manufacturing sector, on the other hand, continues to suffer.
The PMI indices for manufacturing activity in the United States will be published at 1:45 p.m. GMT and are expected to show a more vigorous economy, unlike the situation in Europe.
VALUES TO FOLLOW AT WALL STREET
Tesla takes 1% in pre-market trading. Wedbush estimates that the automaker’s market capitalization will reach $2 trillion by the end of 2025.
Microstrategy is up 6.1% in pre-market trading as the group prepares to join the Nasdaq 100 index alongside Palantir and Axon Enterprise which are up 1% and 3.1% respectively.
VALUES IN EUROPE
The French group Vivendi (+35%) announced on Monday its dismantling and the listing of its various entities on different stock exchanges: Canal+, its flagship asset, fell by 20% on the London Stock Exchange, Havas gained 1.34% in Amsterdam and Louis Hachette jumped 26.78% in Paris.
Entain fell 6.6%. A subsidiary of the group is the subject of legal action by Australia’s financial crime watchdog over alleged breaches of anti-money laundering and anti-terrorism financing laws.
Novo Nordisk drops 6.50% after the Danish drugmaker announced an investment of 8.5 billion crowns (1.14 billion euros) in a new factory in Odense, Denmark, for production drugs against rare diseases.
RATES The yield gap between the Bund and the ten-year OAT rose to nearly 80 basis points on Monday after the downgrading of the French sovereign rating by Moody’s.
The ten-year German Bund yield stands at 2.234%, down 1.3 basis points, while its French equivalent is stable at 3.03%.
EXCHANGES The dollar oscillates around 107 points on Monday, near a three-week peak against a basket of reference currencies, as central bank meetings approach.
The euro fell 0.04%, to 1.0498 dollars, after falling to 1.0453 dollars at the end of last week, its lowest level since November 26.
The pound sterling gained 0.27%, to 1.2652 dollars.
Bitcoin surpassed $105,000 for the first time, driven by signs that US President-elect Donald Trump will follow through on his promises on the digital currency.
OIL
The oil market fell on Monday after the publication of monthly retail sales statistics in China which came out lower than expected.
Brent fell 0.74% to $73.96 per barrel and American light crude (West Texas Intermediate, WTI) declined 0.93% to $70.63.
(Written by Claude Chendjou)
