European stocks expected to start green week
Paris (Reuters)-Major European stock markets are expected to rise on Monday and should primarily initiate a technical rebound, taking advantage of the partial reopening of Shanghai and the prospect of rising prices on Wall Street. With inflation-related concerns and interest rates that continue to exist very much.
Index futures contracts suggest an increase of 1.12% at Frankfurt’s Dax, 0.63% at London’s FTSE 100 and 1.02% at Eurostocks 50. For CAC 40 in Paris, it can take about 1%, according to the initial report. Available display.
Currently, major New York index futures contracts are forecast to rise 0.62% on the Dow Jones, 0.81% on the Standard & Poor’s 500 and 1.02% on the Nasdaq.
In China, Shanghai reopened part of its metro network on Sunday after some lines were closed for almost two months. It was decided to curb the spread of the coronavirus by a new step to completely lift the heavy confinement.
Shanghai’s announcement on Friday raised expectations that one of the People’s Bank of China’s major major interest rates from China had fallen sharply as Beijing expanded its use of telework for millions of employees as part of it. News from is even more welcome. Further stimulation.
Investors are also keeping an eye on the geopolitical situation, whether it’s a conflict in Ukraine or an Asian tour of US President Joe Biden.
It also monitors Germany’s Ifo Business Climate Index at 08:00 GMT. This should also be affected by inflation and supply chain tensions.
Value to follow:
On wall street
The New York Stock Exchange closed in a scattered order on Friday, but surpassed the day’s lows in the red at the end of another week amid continued concerns over inflation and rising interest rates.
The Dow Jones Industrial Average rose 0.03% (8.77 points) to 31,261.9, and the Standard & Poor’s 500, which spent most of the session in the red, remained virtually unchanged (+ 0, 01%) at 3,901.36, and the Nasdaq Composite Index It fell by 33.88 points. From (-0.30%) to 11,354.62.
The S & P 500 rose again after temporarily entering the bear market, which was 20% below its January peak, with a weekly decline of 3.05%.
The Dow Jones fell 2.9% in a week, the first time since 1932 that it has fallen for eight consecutive weeks. Meanwhile, the Nasdaq fell 3.82%, the seventh straight week since 2001.
Nasdaq was heavily squeezed by Tesla, down 6.4%. Meanwhile, CEO Elon Musk said a “totally unfounded” report from Business Insider had sexually assaulted flight attendants. In 2016.
On the Tokyo Stock Exchange, Wall Street is expected to rise, and the Nikkei Stock Average is within an hour of the closing price due to the continuous rise in financial stocks following the favorable performance of the 7.93% insurance company Tokyo Stock Exchange. It increased by 0.55%.
In China, Shanghai SSE Composite decreased by 0.54% and CSI 300 decreased by 1.16% after it was announced in Beijing that the number of cases of COVID-19 was the highest in a month.
Exchange / charge
The dollar is still declining against other major currencies (-0.41%) after recording a weekly negative performance for the first time in almost two months, and the positive impact of expectations for rising U.S. interest rates has diminished. bottom.
The euro, which had already rebounded 1.5% last week, rose 0.26% against the 1.0587 greenback, and the yen rose 0.31% at 127.46.
The yuan has benefited from the decision by the People’s Bank of China (PBOC) to fix a short pivot 1.1% higher than Friday.
In the fixed income market, yields on 10-year Treasuries are up to 2.8189%.
The oil market has benefited from the depreciation of the dollar, and after Memorial Day next weekend, fuel demand is expected to increase not only in China but also in the United States, and the summer major travel season begins. Country.
Brent rose 0.69% to $ 113.33 a barrel and US light crude oil (West Texas Intermediate, WTI) rose 0.49% to $ 110.82.
Expectations for a fall in the dollar and a recovery in demand in China support copper prices (+ 0.57%).
Meanwhile, China’s benchmark iron ore prices surged nearly 7% at the time of opening after India raised export taxes on some commodities on Saturday to curb price increases in the domestic market.
(Written by Marc Angrand and edited by Matthieu Protard)