Stability is evident for stocks in Europe, the dollar is falling
PARIS (Reuters) – Major European stock markets were expected to see little change on Monday despite a general increase in risk appetite due to the recent easing of health restrictions in China, a factor contributing to a sustained rally in European shares. last weeks.
Index futures offer a close-to-balance opening for the Dax in Frankfurt, the FTSE 100 in London and the EuroStoxx 50. As for the CAC 40 in Paris, it could yield around 0.1% based on the early directions available.
The Paris market is now rebounding for nine consecutive weeks for a cumulative gain of almost 20% from its low point in late September, while the broad European Stoxx 600 index has recovered more than 16% in less than two and a half months. .
Several Chinese cities announced the easing of restrictions on the spread of the COVID-19 outbreak on Sunday, suggesting Beijing is continuing to ease health policies after the demonstrations of the past few weeks, which could support growth and demand for materials.
State media Yicai also reported on Sunday evening that authorities may lower the official threat level posed by the coronavirus.
If the news favors stocks, investors’ attention may quickly turn to economic indicators and central banks.
The opening week will be marked by, among other things, monetary policy decisions by the Fed, the European Central Bank (ECB) and the Bank of England in Australia and Canada next week. USA (December 13).
US monthly employment statistics released on Friday did not cast doubt on the preferred scenario of a rate hike capped at 50 basis points next week, but above-expected numbers for job creation and wages warrant caution.
This first session of the week will be animated by the final results of the S&P Global PMI surveys on services sector activity, eurozone retail sales figures and the American ISM services index, among other things.
ON WALL STREET
The New York Stock Exchange ended mixed on Friday, but finished above the day’s lows after monthly U.S. employment figures revived fears that the Fed’s aggressive monetary policy may keep interest rates unchanged.
The Dow Jones added 0.1%, or 34.87 points, to 34,429.88, the Standard & Poor’s 500 lost 5.17 points, or 0.13%, to 4,071.40, and the Nasdaq Composite added 20.95 points (- 0,15,18 points) decreased
They all lost around 1% to session lows, dragged down by growth and high-tech stocks like Apple (-0.34% at the close) or Amazon (-1.43%).
Overall, the S&P 500 gained 1.13%, the Dow Jones gained 0.24% and the Nasdaq gained 2.1% for the week.
Index futures show a slightly lower open for now.
Tokyo Stock Exchange’s Nikkei gained 0.15% to 3.11% after it reported a 6.5% increase in its customers’ average basket in November, supported by Uniqlo’s parent company Fast Retailing, among others.
In China, the Shanghai SSE Composite gained 1.54% and the CSI 300 gained 1.72%, benefiting from the easing of health policy.
The dollar continued to depreciate against other major world currencies (-0.30%), punished by a general re-interest of investors in risky assets.
For example, the euro rose 0.31% to 1.0571, its highest level since late June.
The Chinese yuan rose by 0.94% in the domestic market, passing seven and reaching the dollar limit.
Treasury bond yields rose again in Asian trade after a lower end in the US market on Friday, as recession fears took hold after seeing growth last longer than expected at the end of the session. Wages weigh on the Fed’s task.
The ten-year is 3.5315%, and the two-year is 4.3169%.
The oil market is supported by a combination of the easing of health restrictions in China, the approval of OPEC+’s supply reduction policy, the European embargo on Russian oil coming into effect and an international agreement on the crude oil price ceiling. From Russia.
Brent rose by 0.48% to $85.98 a barrel, US light crude oil (West Texas Intermediate, WTI) rose by 0.54% to $80.41.
(Written by Marc Angrand)