Photo of the Euronext Stock Exchange buildings in Paris
By Claude Chandjo
Major European stock markets are expected to rise slightly on Monday at the start of a week mainly devoted to central banks where caution should prevail while the latest data published in the United States revived concerns about a possible suspension of expected monetary easing in the country. .
According to the first available indications, the Parisian CAC 40 should rise 0.22% at the opening. The DEX in Frankfurt rose 0.09%, while the FTSE 100 rose 0.06% in London. The Eurostox 50 index is expected to rise 0.02%.
The central banks of Japan, the United States, the United Kingdom, Switzerland and Norway are meeting this week and the Bank of Japan (BoJ) is expected to make a decision on Tuesday that could end its negative rates in the face of rising inflation. Wages
In the United States, where the Federal Reserve (Fed) is working against curbing demand, the economy’s resilience and surprising growth in consumer prices (CPI) and producer prices (PPI) have awakened inflationary fears. The American central bank is expected to announce a new status quo on its rates on Wednesday, but investors will mainly focus on the “dot plot”, which represents an estimate of the evolution of lending costs.
Goldman Sachs indicated on Monday that it now expects a rate cut in the United States of just 75 points this year, down from 100 points previously, while JP Morgan cut its forecast for the region to 75 points from 125 points.
The Fed’s announcements will be followed by the Bank of England (BoE) on March 21, which is awaiting further clarity on wage evolution to begin cutting its rates.
In the euro zone, where the European Central Bank (ECB) met earlier in the month and paved the way for a rate cut in June, final data on consumer prices in the bloc on Monday will confirm a slowdown in inflationary pressures. At the risk of disappointment.
Wall Street
The New York Stock Exchange was down on Friday, with major stocks in the technology sector, index movements now at record levels and volatility linked to the expiration of options and futures contracts.
The Dow Jones index fell 0.49% or 190.89 points to 38,714.77 points.
The S&P-500 closed down 33.06 points, or 0.64%, at 5,117.42.
The Nasdaq Composite fell 155.36 points (-0.96%) to 15,973.17 points.
For the week, the Dow Jones fell 0.02%, the S&P 0.13% and the Nasdaq 0.7%.
Adobe stock fell more than 13% after second-quarter revenue guidance fell short of expectations.
in Asia
On the Tokyo Stock Exchange, the Nikkei index rose 2.67% to 39,740.44 points, after losing 2.4% last week partly on profit-taking. Broader Topix rose 1.92% to 2,721.99 points.
The MSCI index, which brings together shares in Asia and the Pacific (excluding Japan), rose 0.3% after falling 0.7% last week.
In China, the Shanghai SSE Composite rose 0.99% and the CSI 300 rose 0.94%, with indices driven mainly by industrial production, which rose more than expected in the January-February period. 7% per annum, according to official data. Retail sales in China also rose more than expected by 5.5% year-on-year during the same period.
Values to follow in Europe:
changes
The dollar is practically unchanged (-0.05%) against a basket of reference currencies.
The euro rose 0.06% to $1.0893 and the pound sterling traded at $1.2733 (-0.05%).
The Russian ruble strengthened slightly against the US dollar on Monday, up 0.50% to 92.3975, a day after the announcement of Vladimir Putin’s improbable re-election to a fifth term in power in Russia for nearly a quarter of a century.
rate
The yield on ten-year US Treasury bonds was steady at 4.3004%, after hitting its highest level since February 22 at 4.310% last week.
The yield on German bunds of the same maturity, the benchmark for the euro zone, also stood at 2.435%, after rising nearly two basis points on Friday.
Oil
Oil prices continued to rise after a 4% gain last week amid tight supplies and geopolitical risks.
Brent rose 0.420% to $85.70 a barrel and American light crude (West Texas Intermediate, WTI) added 0.48% to $81.43.
Key economic indicators on the agenda for March 18:
Country GMT Indicator Period Previous Consensus
EZ 10:00 Consumer Prices February +0.6% -0.4%*
(final)
– Over one year +2.6% +2.6%*
*First estimate
(Writing by Claude Chenzhou, Editing by Zifan Liu and Kate Entringer)
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