2024-05-06 10:43:37
Wall Street is expected to rise on Monday, supported by the latest employment figures, while European indexes advanced mid-session following encouraging indicators of the bloc’s economic dynamism.
New York index futures suggest Wall Street will open in the green, with the Dow Jones rising 0.22%, the Standard & Poor’s 500 gaining 0.25% and the Nasdaq 0.22%.
In Paris, the CAC 40 rose 0.6% to 8,005.69 points around 11:55 GMT. The Dax in Frankfurt rose 0.64 percent. The FTSE in London is closed for a public holiday.
The pan-European FTSEurofirst 300 index rose 0.44%, compared with 0.63% for the EuroStoxx 50 and 0.51% for the Stoxx 600.
The US jobs report released on Friday brought relief to investors as labor market tensions eased in April.
European markets welcome the final PMI indicators published on Monday, which show that recovery dynamics in the Eurozone are slightly stronger than first announced.
Business activity in the eurozone grew in April at the fastest pace in almost a year, thanks to a sharp upturn in the services sector.
Furthermore, the producer price indicator rose in line with expectations, reassuring regarding price dynamics in the bloc, while the Sentix index, which measures investor sentiment, signals a better outlook.
The week will be poor with data, and the markets will primarily focus on the decision of the Bank of England, expected on Thursday, as well as on the latest earnings publications. Figures from Siemens, Bouygues or UBS are expected in the coming days.
“In the coming weeks, following the quarterly publications, the stock markets should develop according to the macroeconomic data (… At this stage, if a small recovery actually seems to be taking shape, it seems fragile in an environment that is still is very uncertain,” explains Gilles Guibout, head of European equities at AXA IM.
“With valuations close to long-term average levels, it seems more important than ever to maintain good diversification,” the manager adds.
Markets are also welcoming the latest developments in China, with the Politburo of the Chinese Communist Party declaring last week that it would strengthen its support for the country’s economy.
Data published on Monday also showed that activity in the service sector continued to expand in April, with leading indicators giving hope of a continued upturn in the long term.
VALUES TO FOLLOW IN WALL STREET
Berkshire Hathaway reported a record quarterly profit on Saturday, supported by a significant increase in insurance income.
The group nevertheless announced that it had reduced its stake in Apple by 13%, shedding around 115 million shares.
VALUES TO BE FOLLOWED IN EUROPE
Atos is volatile following announcing on Monday that it had received four proposals from different investors as part of its restructuring procedure. The share fell 2.9 percent.
Teleperformance tops the CAC 40 and is up 5.79% following encouraging comments from analysts, and Stiefel particularly welcomes the group’s latest results.
Maurel et Prom climbs 8.49% following receiving an OFAC license from the US Treasury Department for its operations in Venezuela.
Eutelsat Communications confirmed on Monday that it was studying partnership opportunities with terrestrial infrastructure investors, falling 1.92%.
PostNL reported a loss for normalized earnings before interest and taxes for the first quarter on Monday, with a loss of 4.19%.
EVALUATE
Yields are falling moderately following the latest indicators published on both sides of the Atlantic.
The German ten-year yield weakened by 6.4 bp to 2.446%, that of the two-year yield lost 4.6 bp to 2.889%.
The ten-year Treasury yield fell 2.5 bp to 4.4752%, while the two-year yield fell 2.2 bp to 4.7845%.
CHANGES
The British pound is strengthening ahead of the Bank of England’s next monetary policy decision, expected on Thursday, which is expected to keep interest rates at current levels.
The dollar rose 0.05% once morest a basket of peers, the euro rose 0.1% to $1.0769 and the pound strengthened 0.27% to $1.2578.
FOR OIL
Crude oil is rising following Saudi Arabia raised oil prices for June for most of its customers, while negotiations between Israel and Hamas appear to have stalled.
Brent nibbles 0.71% to $83.55 a barrel, US light oil (West Texas Intermediate, WTI) rises 0.88% to $78.8.
(Written by Corentin Chappron, edited by)
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