EUROPEAN STOCK IS EXPECTED TO START THE WEEK IN THE GREEN ZONE
PARIS (Reuters) – Major European stock markets are expected to rally on Monday and should take advantage of the partial opening in Shanghai and the prospect of rising Wall Street prices to start a mostly technical rebound, inflation and interest rate concerns. which remain very relevant.
Index futures assume the Dax in Frankfurt up 1.12%, the FTSE 100 in London up 0.63% and the EuroStoxx 50 up 1.02%. available indications.
Futures contracts for major New York indexes are currently projected to rise by 0.62% for the Dow Jones, 0.81% for the Standard & Poor’s 500 and 1.02% for the Nasdaq.
In China, Shanghai reopened part of its subway network on Sunday after some lines were closed for nearly two months, a new step towards the complete lifting of stringent restrictions aimed at curbing the spread of the coronavirus.
If Beijing, for its part, has expanded the use of teleworking to millions of employees, the news from Shanghai is all the more welcome as Friday’s announcement of a notable drop in one of the People’s Bank’s main key rates from China bolstered hopes for further stimulus.
Investors are also watching the geopolitical situation, whether it be the conflict in Ukraine or the Asian tour of US President Joe Biden.
They will also track the Ifo business climate index in Germany at 0800 GMT, which should again be affected by inflation as well as supply chain tensions.
VALUES TO FOLLOW:
ON WALL STREET
The New York Stock Exchange closed on Friday on a mixed but higher day’s lows, ending another week in the red amid lingering concerns about inflation and rising interest rates.
The Dow Jones index added 0.03%, or 8.77 points, to 31,261.9 points, the Standard & Poor’s 500, which spent most of the session in the red, remained almost unchanged (+0.01%) to 3,901.36 points, while the Nasdaq Composite fell 33.88 points. (-0.30%) to 11,354.62.
The S&P 500 briefly fell into a bear market, 20% below its January peak, before rebounding, resulting in a 3.05% weekly decline.
The Dow Jones plunged 2.9% on the week, its eighth consecutive week of declines, the first since 1932, while the Nasdaq plunged 3.82% for its seventh consecutive weekly decline not seen since 2001.
The Nasdaq is under heavy pressure from Tesla, which fell 6.4%, and its chief executive, Elon Musk, called “completely unfounded” reports from Business Insider that he raped a flight attendant in the air on a private jet. in 2016.
Elsewhere on the Tokyo Stock Exchange, the Nikkei gained 0.55% less than an hour before the close, supported by upside prospects on Wall Street and solid gains in financial stocks following a strong performance by insurer Tokyo Marine, which gained 7.93%.
In China, the Shanghai SSE Composite lost 0.54% and the CSI 300 lost 1.16% after announcing the highest number of COVID-19 cases in a month in Beijing.
The dollar is still losing ground against other major currencies (-0.41%) after it showed a negative weekly dynamics for the first time in almost two months, and the optimistic effect of US interest rate hike expectations ended in disappearance.
The euro, which has already recovered 1.5% last week, gained 0.26% against the US dollar to hit 1.0587, while the yen gained 0.31% to hit 127.46.
The Chinese yuan is benefiting from the decision of the People’s Bank of China (PBOC) to lock in its short reversal 1.1% above Friday’s level.
In the bond market, the yield on ten-year US Treasuries is up to 2.8189%.
The oil market is benefiting from a declining dollar and the prospect of higher fuel demand in China as well as the United States as next Memorial Day weekend marks the start of the big summer travel season around the world. the country.
Brent added 0.69% to $113.33 a barrel, while US light oil (West Texas Intermediate, WTI) added 0.49% to $110.82.
The fall of the dollar and the hope for a recovery in demand from China support copper prices (+0.57%).
Meanwhile, China’s iron ore benchmark jumped nearly 7% at the open after India raised export duties on some commodities on Saturday in an attempt to curb domestic price increases.
(Written by Marc Angrand, edited by Mathieu Protard)