The Dax chart on the Frankfurt Stock Exchange
couple Pauline Foret
European stock markets ended lower on Monday after a session marked by uncertainties about the future of American monetary policy.
In Paris, the CAC 40 ended down 0.3% at 7,408.64 points. The British Footsie closed down 0.29% and the German Dax 0.38%.
The EuroStoxx 50 index ended down 0.48%, the FTSEurofirst 300 by 0.5% and the Stoxx 600 by 0.55%.
Friday’s jobs report, coupled with the growing possibility that inflation could surge if Donald Trump were to impose steep tariffs on his key trading allies, all but dashed hopes of a round of cuts. of the Federal Reserve to continue in 2025.
“The market is still in pullback mode. The bears stepped up the pressure last week, especially after Friday’s strong jobs report and the ensuing concerns around whether the Fed might not cut rates directors before long,” said Chris Larkin, head of E*Trade’s trading and investing practice at Morgan Stanley.
Meanwhile, despite the selling madness that gripped the yield markets last week, government bonds on both sides of the Atlantic remain feverish.
In the United Kingdom, the 30-year Gilt has reached its highest level since 1998 as the pound sterling retreats amid concerns about the British government’s finances.
The markets will now focus all their attention on the consumer price index for the month of December in the United States, which will be published on Wednesday and which is expected to increase by 2.9% year-on-year. A surprise result could force the Federal Reserve to reverse course and consider raising rates by the end of the year.
VALUES
In Paris, Biomérieux gained 4.05% during the session after the announcement of an agreement to acquire the Norwegian start-up SpinChip Diagnostics while Eurazeo advanced 3.86% after an increase in the recommendation from Goldman Sachs to “buy”.
A WALL STREET
At mid-session, Wall Street is moving in a dispersed order. While the Standard & Poor’s 500 lost 0.58% and the Nasdaq lost 1.3%, the Dow Jones gained 0.34%.
Megacaps and the technology sector are declining, weighing heavily on the Nasdaq. Tesla, Apple and Google lost between 1.53% and 2.6%, while Nvidia lost 3.11% after the Biden administration indicated its intention to strengthen semiconductor export controls.
Moderna collapses by 22%, the bottom of the S&P 500 after having revised its sales outlook for 2025 downwards.
CHANGES
The dollar continues its rise on Monday, increasing pressure on other currencies amid speculation about American monetary policy in 2025.
The greenback advances 0.24% against a basket of reference currencies.
The euro lost 0.32% to 1.0210 dollars, while the pound sterling (-0.37%) was weighed down by the rise in bond yields and the lack of confidence in the British economy.
RATE
Bond yields on both sides of the Atlantic continue to soar after the US jobs report and amid concerns about the resumption of inflation after Donald Trump comes to power.
The yield on ten-year Treasuries gained 2.0 basis points (bp) to 4.7944%, the two-year treasury rose 0.7 bps to 4.4025%.
The ten-year German Bund yield fell 0.3 bps to 2.5890%, while the two-year yield gained 0.2 bps to 2.2950%.
The UK 30-year Gilt hit its highest since 1998 during the session, gaining 2.5 basis points to 5.4320%.
OIL
Oil prices rose for the third consecutive session this Monday after the imposition of new sanctions on Russian oil, with Brent even likely to exceed $85 in the short term according to a note published by Goldman Sachs on Sunday.
Brent rose 1.88% to $81.26 per barrel and American light crude (West Texas Intermediate, WTI) rose 2.99% to $78.86.
TO BE CONTINUED TUESDAY JANUARY 14:
U.S. producer prices for December will be released at 2:30 p.m.
THE SITUATION ON THE MARKETS
(Some data may have a slight lag)
(Writing by Pauline Foret, edited by Kate Entringer)
