Europe ends in red as central bank decisions loom
By Claude Chenjou
PARIS (Reuters) – European stock markets edged lower on Monday ahead of inflation data from Germany and the United States and monetary policy meetings by several major central banks looming.
In Paris, the CAC 40 index decreased by 0.41% and ended at 6,650.55 points. The British Footsie lost 0.41% and the German Dax lost 0.45%.
EuroStoxx 50 index fell by 0.53%, FTSEurofirst 300 by 0.52% and Stoxx 600 by 0.49%.
At the close in Europe, the Dow Jones gained 0.81%, the Standard & Poor’s 500 gained 0.49% and the Nasdaq gained 0.27%.
US indices are particularly supported by the prospect of a hike by the US Federal Reserve (FED) capped at 50 basis points on Wednesday, with the probability of an increase of this magnitude rising to 93% from 91% previously.
A stronger-than-expected rise in U.S. producer prices published on Friday raised fears that the Fed will be more aggressive in monetary policy.
US Treasury Secretary Janet Yellen also acknowledged the risk of a recession on Sunday, predicting that inflationary pressures will ease sharply in 2023.
The release of monthly data on US consumer prices on Tuesday, however, kept some cautious, hence the weak returns on Wall Street.
In values, biotech company Horizon Therapeutics rose 15.07% (-1.27%) after Amgen announced its $26.40 billion acquisition, while Microsoft advanced 1.77%, up 4%, in favor of entry in the capital. of the LSE Group, operator of the London Stock Exchange.
Investors in Europe will learn about monetary policy decisions from the European Central Bank (ECB), the Bank of England (BoE) and the Swiss National Bank (SNB) on Thursday.
A 50-basis-point interest rate hike from those three central banks is also expected, but European stock markets suffered more losses than gains on Monday after Friday’s gains.
A resurgence of cases of the virus responsible for COVID-19 in China also weighed on investor sentiment in Europe, with luxury stocks and the basic resources division falling in particular (-1.67%). .
VALUES IN EUROPE
In individual stocks in Europe, LVMH lost 0.56%, Kering 1.06% and Richemont 0.41%, with luxury particularly exposed to China.
Mining groups ArcelorMittal, Eramet and Anglo American fell 1.62%, 5.05% and 1.09% respectively.
Uniper lost 0.93% as the European Commission asked the German gas importer to divest its operations in the Netherlands in order to give the green light to a rescue plan, according to daily Handelsblatt.
LSE Group, the operator of the London Stock Exchange, gained 2.97% after announcing that it has entered the capital of Microsoft.
CHANGES
In foreign currencies, the dollar fell 0.13% against a basket, as investors bet on a slowdown in US inflation and an easing of Fed rate hikes.
Taking advantage of this, the euro rose to $1.0546 (+0.15%).
The pound was up 0.25% at $1.2286, supported by better-than-expected UK GDP growth estimates for October.
RATE
European bond yields were volatile as central bank decisions loomed before lifting the session slightly.
The ten-year German Bund rose less than a basis point to 1.93%, while the two-year rose nearly 4 basis points to 2.19%.
Ten-year yields rose nearly two points to 3.58% and two-year yields rose 5 points to 4.37% on Friday, hurt by a stronger-than-expected rise in US producer prices. , the market sees interest rates peaking at 4.96% in May 2023.
OIL
Oil prices are supported by supply fears due to uncertainty over when the Keystone pipeline between Canada and the United States will be restarted, as well as the threat of lower Russian production.
Brent rose by 2.68% to $78.14 a barrel, American light oil (West Texas Intermediate, WTI) increased by 3.35% to $73.40.
To watch on Tuesday:
Publication of US consumer prices for November at 13:30 GMT
MARKET SITUATION:
(Some data may show slight variation)
INSIDE THE FENCE
EUROPE
Indexes Last Available. There is. %YTD
Points
Eurofirst 300 1726.38 -9.00 -0.52% -8.67%
Eurostoxx 50 3921.82 -20.80 -0.53% -8.76%
CAC 40 6650.55 -27.09 -0.41% -7.02%
Dax 30 14.306.63 -64.09 -0.45% -9.94%
FTSE 7445.97 -30.66 -0.41% +0.83%
SMI 11033.64 -34.66 -0.31% -14.31%
Values to watch in and around Paris
Europe: [WATCH/LFR]
TREND TO
WALL STREET
Indexes Last Available. There is. %YTD
Points
Dow Jones 33736.94 +260.48 +0.78% -7.16%
S&P-500 3952.67 +18.29 +0.46% -17.07%
Nasdaq 11034.13 +29.51 +0.27% -29.47%
Nasdaq 100 11574.19 +10.86 +0.09% -29.08%
Minutes of the meeting on the wall
Street: [.NFR]
“The Day Ahead” – Update on the next session
on Wall Street [DAY/US]
CHANGES
Has Expectation Rate.% YTD
Euro/Dlr 1.0539 1.0530 +0.09% -7.29%
DLR/Yen 137.48 136.56 +0.67% +19.49%
EUR/JPY 144.92 143.85 +0.74% +11.20%
DLR/CHF 0.9356 0.9343 +0.14% +2.57%
EUR/CHF 0.9864 0.9838 +0.26% -4.87%
Stg/Dlr 1.2282 1.2255 +0.22% -9.22%
Index $ 104.9360 104.8100 +0.12% +9.11%
GOLD
There is. %YTD
Golden Spot 1784.06 1796.63 -0.70% +17.60%
RATE
There is an end. Spread/close
(honey)
Future Bunds 140.47 -0.05
10-year debt 1.93 -0.00
Bund 2 years 2.21 +0.01
10-year OATs 2.40 -0.00 +46.60
10-year Treasury 3.57 +0.01
Treasuries 2 years 4.37 +0.04
OIL
Previous Price Change Change % YTD
US light crude 73.34 71.02 +2.32 +3.27% +19.82%
Brent 78.01 76.10 +1.91 +2.51% +18.14%
(Writing by Claude Chendjou, Editing by Sophie Louet)
