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Decline in sight in Europe at the start of a busy week – 04/11/2022 at 08:12

THE MAJOR EUROPEAN SCHOLARSHIPS ARE EXPECTED TO FALL

THE MAJOR EUROPEAN SCHOLARSHIPS ARE EXPECTED TO FALL

by Marc Angran

PARIS (Reuters) – Major European stock markets are expected to fall Monday as uncertainties over monetary policy, inflation and the conflict in Ukraine far outweigh the relative relief offered by the results of the first round of the election. the price of a barrel of oil fell by more than 2%.

Index futures point to a fall of 0.87% for the Dax in Frankfurt, 0.44% for the FTSE 100 in London and 0.77% for the EuroStoxx 50. The CAC 40 in Paris, according to the first available indications, would be about 0.1%. can yield 6%.

Emmanuel Macron’s first-place finish in Sunday’s election was initially greeted by a sharp rise in the euro in Asian markets, but this movement waned over the hours, as the April 24 run ended and announced much tighter than in 2017.

In addition, while shorter for the European and US markets as they close on Friday before the Easter weekend, next week promises to be a busy week on the economic side with the Bank of Canada’s monetary policy meetings on Wednesday and out of the European Union. Central Bank (ECB) on Thursday, preceded on Tuesday by United States consumer price data.

US inflation could have reached 1.2% in March compared to February and 8.5% year-on-year according to the Reuters consensus.

In China, official inflation statistics released Monday show a higher-than-expected rise in producer prices, of 8.3% year-on-year.

The American banks will start from Wednesday simultaneously with the publication of the quarterly results.

AT WALL STREET

The New York Stock Exchange ended Friday in mixed order, with the Dow Jones rising slightly, but the Nasdaq was still penalized by tech stocks amid ongoing gains in bond yields.

The Dow Jones index gained 0.4% or 137.55 points to 34,721.12, but the Standard & Poor’s 500 lost 11.7 points or 0.26% to 4,488.51 and the Nasdaq Composite lost 186.3 points ( -1.34%) to 13,711.00.

Microsoft, Tesla and Nvidia fell 1.46% to 4.49%. Conversely, the rise in interest rates has benefited major banks such as JPMorgan Chase & Co (+1.83%), Wells Fargo (+2.09%) or Citi (+1.71%).

Over the course of the week, the S&P fell 1.26%, the Dow 0.27% and the Nasdaq 3.86%.

Futures so far point to an open lower of about 0.4% for the Dow, 0.6% for the S&P-500 and 1% for the Nasdaq.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index lost 0.84% ​​less than an hour before closing, penalized by the fall in major technology stocks in the wake of the US Nasdaq.

In China, the Shanghai SSE Composite fell by 1.87% and the CSI 300 by 2.48% as the country’s health situation continued to fuel fears of a marked slowdown in growth pending further support from political and monetary authorities.

CHANGES

The euro initially benefited from the results of the first round of the French presidential election, which rose to $1.0955, but then declined its gains and is now trading at 1.0881 (+0.05%).

The dollar index, which measures the dollar’s movements against a benchmark basket, is up 0.12% but remains below 100 points, a threshold that was crossed for the first time on Friday in nearly two years.

RATE

The upward trend in US Treasury yields continues, fueled by the prospect of a rapid tightening of US monetary policy, a combination of a policy rate hike and a cut in the central bank’s balance sheet.

Two-year securities, which are the most sensitive to interest rate expectations, rose by more than six basis points to 2.5818%, ten-year securities by more than five points to 2.7743% and 30-year two points to 2.7659%.

The US 10-year yield is thus higher than its Chinese equivalent for the first time since 2010.

OIL

The oil market, which has been in decline for two weeks in a row, is extending its losses, the trend continues to be weighed down by the reliance on major consumer countries on their strategic reserves and large-scale lockdowns in China, which are holding back demand.

Brent fell 2.28% to $100.44 a barrel and US light crude (West Texas Intermediate, WTI) 2.37% to $95.93.

(edited by Bertrand Boucey)

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