2023-07-24 11:36:50
PARIS (Archyde.com) – Wall Street is expected to rise on Monday, while European stock markets hesitate, disappointed by weaker than expected activity figures and by a Spanish election which does not give a clear winner, at the start of a busy week for the markets. New York index futures point to a positive opening on Wall Street, with the Dow Jones gaining 0.16%, while the Standard & Poor’s 500 rose 0.21% and the Nasdaq 0.27%.
In Paris, the CAC 40 fell 0.20% to 7,417.77 around 10:40 GMT, while the FTSE in London stagnated. The Dax in Frankfurt rose by 0.18%.
The pan-European FTSEurofirst 300 index is treading water, like the Stoxx 600, but the EuroStoxx 50 lost 0.23%. Activity indicators for the euro zone, France and Germany were published in the morning, and show that while activity is slowing, pressure on wages in services continues.
“The PMI index suggests a contraction in economic activity at the start of the third quarter, a development which is in line with the latest indicators and signals an increased risk of recession”, explains ING.
“The survey continues to suggest a moderation in price pressures, but the impact of wages on services will remain a concern for ECB hawks,” the economists add.
Adding to the uncertainty, no party emerged victorious from the snap general elections held in Spain on Sunday as the Conservatives were given the favourites, which weighed on Spanish titles.
Investors are also cautious before a busy week: three of the main central banks are due to meet from Wednesday, while the earnings season is in full swing, Alphabet, Meta, Intel, Microsoft, GE, AT&T, Boeing, Exxon Mobil, McDonald’s, Coca Cola, Ford and General Motors, among others, to publish their second quarter figures.
Chevron reported adjusted earnings of $3.08 per share, versus consensus of $2.97 per share, in preliminary figures announced Sunday. Full results will be released on Friday.
Warner Bros and Mattel are up 1.2% and 2% respectively in pre-market, with “Barbie” breaking the record for US opening viewership in 2023.
VALUES TO FOLLOW IN EUROPE
Plastic Omnium reported on Monday a 35% jump in its turnover in the first half, and also confirmed its annual objectives, which hoisted the title at the top of the SBF 120, up 5.11%.
The Bavarian Nordic pharmaceutical group tumbles 22.12%, at the bottom of the STOXX 600, following having interrupted its program to develop a vaccine once morest the respiratory syncytial virus.
Swiss wealth manager Julius Baer on Monday announced a 4% increase in its assets under management to 441 billion Swiss francs (459.8 billion euros), pushing the stock up 6.85%.
OCADO is up 10.28% as the online grocery store settled all patent disputes with Norwegian robotics company AutoStore.
RATE
European yields fall following the PMI as markets believe poor activity data released on Monday morning will limit the European Central Bank’s room to raise rates. The German ten-year yield fell 5.2 bp to 2.376%, like that of the two-year rate, which is more sensitive to monetary policy expectations, which lost 5.8 bp to 3.178%.
The ten-year Treasury yield fell 3.2 bp to 3.8075%, compared to 1.7 bp to 4.831% for the two-year.
CHANGES
The dollar strengthens ahead of the next Federal Reserve meeting on Wednesday, with markets pricing a further rate hike 96% likely this week.
The dollar advanced 0.17% once morest a basket of benchmark currencies, while the euro fell 0.33% to 1.1086 dollars, under pressure from poor activity data.
The pound sterling fell 0.18% to 1.2832 dollars.
PETROLEUM
Oil is rising, supported by indications that crude supply will remain constrained and by the meeting of the Chinese Politburo this week, which might lead to more measures to support the economy.
Brent crude rose 0.70% to $81.64 a barrel, with US light crude (West Texas Intermediate, WTI) rising 0.73% to $77.63.
(Report Corentin Chapron)
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