A trader works at CMC Markets in London
The main European stock markets are expected to rise at the opening on Monday, positioning themselves for new indicators this week while political uncertainty remains strong in Europe.
Futures contracts suggest an opening increase of 0.49% for the CAC 40 in Paris, 0.41% for the FTSE in London, 0.6% for the Dax in Frankfurt and 0.6% for the EuroStoxx 50.
Several indicators will allow analysts to better understand the trajectory of the American and European economies this week.
CPI inflation in the United States on Wednesday, as well as producer prices could confirm the persistence of the dynamism of underlying prices.
In the euro zone, industrial production and unemployment figures could once again indicate that activity in the secondary sector remains at a standstill.
In Germany, Chancellor Olaf Scholz said on Sunday he was ready for a vote of confidence by Christmas after the breakdown of the government coalition, in order to organize early legislative elections more quickly.
The absence of a government with a majority in Berlin could prove problematic in the coming months, particularly if Donald Trump, the newly elected US president, begins to implement tariff measures targeting Europe.
In such a context, the euro remains close to a four-month low against the dollar.
A WALL STREET
Three days after the election of Donald Trump as President of the United States, euphoria reigned again on Friday on the New York Stock Exchange, where the S&P-500 index crossed the 6,000 mark for the first time in session. points and recorded with the Dow Jones its strongest weekly increase in a year.
To the spectacular “comeback” of the businessman to the White House was added the prospect of seeing the Republicans retain their majority in the House of Representatives, after having seized the Senate, which would facilitate the implementation implementation of the vast program of tax cuts and pro-business deregulation announced by Donald Trump.
The Dow Jones index rose 259.65 points (+0.59%) to 43,988.99, the S&P 500 gained 22.44 points (+0.38%) to 5,995.54, its 50th closing record this year, and the Nasdaq Composite advanced 17.32 points (+0.09%), to 19,286.78.
Over the past week, the S&P gained 4.66%, the Dow 4.61% and the Nasdaq 5.74%.
IN ASIA
Tokyo closed mixed, with many Japanese companies having revised their outlook downwards during the results season. The Nikkei index gained 0.03% to 39,510.85 points. The broader Topix lost 0.14% to 2,738.20 points.
Sony jumped 6.1%, the group having reported a 73% increase in its third quarter profit.
Chinese markets are hesitant, as the support measures for local governments announced by Beijing last week were deemed insufficient by observers. The Hong Kong Hang Seng index declined by 1.59%, the Shanghai SSE Composite strengthened by 0.51%, the CSI 300 increased by 0.66%.
RATE
The American interest rate markets are closed on the occasion of “Veteran Day”. Yields in Europe decline with political uncertainty.
The yield on the German ten-year fell by 1.8 basis points to 2.348%, that of the two-year rate lost 2.6 bp to 2.162%.
CHANGES
Minutes from the Bank of Japan's latest monetary policy meeting show the institution is divided over the date of its next rate hike, putting pressure on the yen.
In Asia, the yen declined by 0.51% to 153.41 yen per dollar, the Australian dollar rose by 0.12% to 0.6588 dollars.
The dollar gained 0.02% against a basket of reference currencies, the euro eroded by 0.02% to 1.0716 dollars, and the pound sterling lost 0.07% to 1.2912 dollars.
Bitcoin hits a record at $81,899.22, driven by hopes of a Republican victory in the US Congress.
OIL
The barrel is hesitating, the strength of tropical storm Rafael decreasing, while the Chinese support plan for the economy has disappointed investors.
Brent rose 0.12% to $73.96 per barrel, American light crude (West Texas Intermediate, WTI) weakened 0.01% to $70.37.
(Written by Corentin Chappron, edited by Kate Entringer)
