2023-06-19 05:46:30
* European indices expected to fall by 0.45% to 0.65% * Wall Street closed for a holiday in the United States * Powell’s hearing in Congress, main meeting of the week PARIS, June 19 ( Archyde.com) – Major European stocks are expected to fall on Monday in the wake of Wall Street and Asian markets, with profit-taking and some caution expected to prevail for now following last week’s solid gain. The first indications available suggest a decline of 0.54% for the Parisian CAC 40 .FCHI , of 0.63% for the Dax in Frankfurt .GDAXI , of 0.44% for the FTSE in London .FTSE and of 0.63 % for the EuroStoxx 50. The broad European Stoxx 600 index and the Parisian market, which posted their best weekly performance in two months last week, should give in to profit taking. The main event of the week will be the semi-annual hearing in Congress of the Chairman of the Federal Reserve on Wednesday. Citi strategists expect Jerome Powell to take the opportunity to hammer home the “hawkish” message launched last week, despite the status quo decided by the central bank. The market is pricing more than 73% the chance that the Fed will raise the fed funds rate target by a quarter point in July, before pausing until the end of the year, according to the FedWatch barometer. . The Bank of England holds its monetary policy meeting on Thursday and a quarter point rate hike is widely expected. VALUES TO FOLLOW: nL8N3883U9 ON WALL STREET On Friday, before the long weekend of “Juneteenth”, the New York Stock Exchange ended in the red, weighed down in particular by Microsoft while two Fed officials cooled investors who had started betting on a quick end to rate hikes. Fed Governor Christopher Waller warned that “underlying inflation is not falling as (he) thought” and Richmond Fed Chairman Thomas Barkin said he was “comfortable with the idea of further rate hikes given that inflation is not yet on a clear trajectory back to 2%. The Dow Jones Index .DJI fell 0.32%, or 108.94 points, to 34,299.12 points, the S&P-500 .SPX lost 16.25 points, or 0.37%, to 4,409.59 points and the Nasdaq Composite .IXIC fell 93.25 points (-0.68%) to 13,689.57 points. The decline of Microsoft MSFT.O (-1.65%) following its all-time high on Thursday weighed on the S&P-500 and the Nasdaq in particular, which did not prevent the two indices from signing a fifth and eighth week respectively consecutive increases. IN ASIA In Tokyo, the Nikkei .N225 lost 1.26%, following hitting a 33-year peak on Friday in reaction to the Bank of Japan’s maintenance of its ultra-accommodative policy. Chinese equities also fell as the lack of announcement on possible stimulus measures following a meeting of the State Council disappointed investors. The CSI 300 index .CSI300 lost 1.03% and the Shanghai SSE Composite .SSEC 0.65%. The rare visit of the head of American diplomacy to China also captures attention. Antony Blinken might meet President Xi Jinping during the day, following having agreed the day before with the Chinese Minister of Foreign Affairs to stabilize relations between the two largest economic powers in the world in order to avoid any conflict. EXCHANGES On the foreign exchange market, the “dollar index”, which measures the variations of the greenback once morest a basket of international currencies, nibbles 0.06% .DXY . The euro is stable at 1.0937 dollars. EUR= OIL Crude prices fall as uncertainties over the evolution of the Chinese economy outweigh the OPEC+ supply cut and a further drop in the number of operating oil and gas platforms in the USA. Brent LCOc1 fell 1.23% to $75.67 a barrel and US light crude (West Texas Intermediate, WTI) CLc1 fell 1.37% to $70.8. NO MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA (edited by Tangi Salaün)
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