PARIS (Reuters) – Wall Street is expected to be mixed on Monday, while European indices are progressing mid-session, before numerous monetary policy declarations, indicator publications and geopolitical meetings expected this week.
New York index futures suggest Wall Street opening in the green, with the Dow Jones rising 0.28%, while the Standard & Poor’s 500 is looking for direction and the Nasdaq is eroding by 0.11%.
In Paris, the CAC 40 advanced 0.56% to 7,671.24 points around 10:25 GMT. The Dax in Frankfurt gained 0.54%, compared to 0.38% for the FTSE in London.
The pan-European FTSEurofirst 300 index rose by 0.48%, compared to 0.62% for the EuroStoxx 50 and 0.41% for the Stoxx 600.
Four members of the European Central Bank’s Governing Council, including the influential Isabel Schnabel, will speak today as investors seek further guidance on the trajectory of European monetary policy.
If the central bank eased its rates as expected during its last meeting, the institution also raised its inflation forecasts, encouraging investors to position themselves with caution on the next rate cut.
Inflation in France for June will also be published on Friday.
The Ifo indicator of the business climate in Germany also disappointed on Monday, weighing on the bond markets.
Markets will nevertheless be focused on the publication of PCE inflation in the United States on Friday, an essential data point for gauging the trajectory of Federal Reserve rates and which could help guide markets for the coming weeks.
The first round of the legislative elections in France, for which the National Rally is favored, and the first debate between the candidates for the American presidential election on Thursday, will also help to liven up the discussions.
VALUES TO FOLLOW IN WALL STREET
Meta Platforms has discussed with Apple the integration of its generative artificial intelligence (AI) model into the recently unveiled AI system for iPhones, the Wall Street Journal revealed Sunday.
European Union antitrust regulators renewed their criticism of Apple on Monday, saying the group’s App Store violates competition rules.
VALUES TO FOLLOW IN EUROPE
The automobile sector is progressing as the European Union and China have agreed to hold discussions around the customs duties that Brussels wishes to impose on electric vehicles manufactured in China. The automobile sub-index gained 1.7%, the largest sectoral increase in the Stoxx 600. Porsche AG, Volkswagen, Mercedes and BMW gained between 2% and 3.1%.
Eurofins Scientific fell 17.98%, after a note published by the American hedge fund Muddy Waters which accused the French group of scientific laboratories of financial irregularities.
Valneva is up 5.48% after the Canadian drug authority gave approval to the marketing of the chikungunya vaccine developed by the French laboratory.
Argenx gains 9.74% after announcing on Saturday the approval by the American FDA of Vyvgart Hytrulo against chronic inflammatory demyelinating polyneuropathy.
Covestro advances 5.07% after the German chemical manufacturer confirmed that it has entered into negotiations for a takeover by Abu Dhabi National Oil Company (ADNOC).
Zalando drops 6.65% after Morgan Stanley lowered its recommendation on the stock to “line weighting”.
Hochtief takes 8.17% on an increase from Jefferies to “buy”.
AB Inbev rises 3.01% after UBS upgrades the world’s largest brewer from “neutral” to “buy”.
RATE
European yields are up slightly after the unexpected deterioration of the German business climate, but the publication of American inflation on Friday limits the variations.
The German ten-year yield is stable at 2.415%, that of the two-year rate rises 1.3 bp to 2.807%.
The ten-year Treasury yield is stable at 4.2574%, while the two-year is unchanged at 4.7362%.
CHANGES
The dollar falls sharply before the publication of American inflation on Friday and the first debate between the candidates for the presidential election, which will be held on Thursday.
The dollar fell by 0.22% against a basket of reference currencies, the euro advanced by 0.27% to $1.072, and the pound sterling strengthened by 0.17% to $1.2667.
OIL
The price of crude is up slightly, with investors estimating that demand this summer will be stronger than expected, while geopolitics is supporting prices, with Ukraine continuing to attack Russian refineries.
Brent rose 0.43% to $85.61 per barrel, American light crude (West Texas Intermediate, WTI) rose 0.43% to $81.08.
MORE MAJOR ECONOMIC INDICATORS EXPECTED THIS DAY
(Written by Corentin Chappron, edited by Tangi Salaün)
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