DROP IN VIEW IN EUROPE
by Laetitia Volga
PARIS (Archyde.com) – The main European stock markets are expected to fall on Monday at the opening, concerns about the continuation of the fighting in Ukraine and the rise in crude oil prices taking precedence over the meager hope of a diplomatic solution to the conflict.
The first indications available indicate an opening down 0.52% for the Paris CAC 40, 0.3% for the Dax in Frankfurt and 0.13% for the FTSE in London.
The European Stoxx 600 index ended last week with a weekly increase of 5.4%, its best performance since November 2020, buoyed by a certain optimism about the negotiations between Russia and Ukraine.
Despite the words of the Turkish Minister of Foreign Affairs declaring in an interview published on Sunday that the two countries were on the verge of agreeing on essential points, investors are more cautious at the start of the week in the expectation of concrete progress.
Diplomatic efforts will continue in the coming days. US President Joe Biden will travel to Poland on Friday to discuss the international response to the invasion of Ukraine, following a meeting in Brussels with NATO allies, his counterparts from G7 countries and leaders Europeans.
In addition, Joe Biden will meet Monday at 3:00 p.m. GMT with French, German, Italian and British leaders to discuss their coordinated response to Moscow’s actions.
Oil prices are up more than 3% on fears of a European embargo on Russian production.
The market will also be watching a speech by Jerome Powell, Chairman of the Federal Reserve, to the National Association of Business Economics (NABE) at 4:00 p.m. GMT.
A WALL STREET
The New York Stock Exchange ended up on Friday, driven among other things by cheap purchases of technology stocks, while a meeting between Joe Biden and Xi Jinping did not bring any surprises on the war front in Ukraine.
The Dow Jones index gained 0.8% to 34,754.93 points, the S&P-500 gained 1.17% to 4,463.12 points and the Nasdaq Composite rose 2.05% to 13,893.84 points.
Over the past week, the three major Wall Street indices recorded their largest weekly increase since November 2020. The S&P gained 6.2%, the Dow 5.5% and the Nasdaq 8.2%.
Futures currently indicate an open on Monday down 0.4% to 0.6%.
IN ASIA
China’s major indices retreat modestly after the People’s Bank of China (PBOC) decided to keep its prime lending rate (TPP) unchanged as some investors expected further relief measures after the pledge made last week by the Deputy Prime Minister to support the economy and the markets.
The CSI300 large cap index fell 0.31% while the Shanghai Composite index lost 0.13%.
The Tokyo Stock Exchange is closed for a public holiday.
OIL
Oil prices rise more than three dollars, with a barrel of Brent above $110 a barrel, investors fear that the European Union will join the United States in an embargo on Russian oil amid a Houthi attack on Saudi oil facilities on Sunday raises concerns.
Brent gained 3.33% to 111.52 dollars a barrel and US light crude (West Texas Intermediate, WTI) took 3.49% to 108.35 dollars.
EXCHANGES/RATES
The dollar is up slightly against other major currencies (+0.13%), including the euro, which is at 1.1041.
The speeches of several officials of the European Central Bank, including the president, Christine Lagarde (07:30 GMT), could influence the trend.
As for government bonds, the yield on ten-year US Treasury bonds varies little at 2.153%.
(edited by Bertrand Boucey)