Wall Street is expected in the red and European stock markets move with little change Monday mid-session, still penalized by the prospect of lower interest rates of the Federal Reserve US less pronounced than expected after the monthly report on US employment.
New York index futures signal a Wall Street opening down about 0.2% for the Dow Jones and S & P-500 indexes and 0.3% for the Nasdaq.
In Paris, the CAC 40 lost 0.13% at 5,586.48 point around 11:45 GMT. In Frankfurt, the Dax yields 0.22% and in London, the FTSE is practically stable at 7.557.74 points (+ 0.06%).
EuroStoxx 50 in the euro area fell by 0.13% while the pan-European FTSEurofirst 300 index gained 0.04% and the Stoxx 600 was almost unchanged (-0.05%).
Global stock markets remain in doubt after a monthly report on US employment better than expected, which makes investors fear that the Fed is less accommodating than expected at its next monetary policy meeting, the 30 and July 31.
“All eyes are again on Federal Reserve Chairman Jerome Powell, who will speak to the US Congress on Wednesday, as expectations of a 0.5-point rate cut now seem very unlikely,” comments Pierre Veyret at ActivTrades.
Market sentiment is further affected by Morgan Stanley’s decision to reduce its exposure to global equities as the US investment bank questions central banks’ ability to cope with the emerging economic slowdown.
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VALUES TO FOLLOW AT WALL STREET
On the New York Stock Exchange, the Apple stock is down 1.7% avant-Bourse after a lower Rosenblatt recommendation to “sell” against “neutral”, the intermediary saying expect performance the group are degrading over the next six to 12 months with notably disappointing sales for the iPhone.
Symantec rises on the stock market (+ 3.2%) following a favorable note from Jefferies on the possible acquisition of Broadcom’s cybersecurity specialist.
VALUES IN EUROPE
On the European stock exchange, Deutsche Bank, which took up to 4.4% in the first exchanges, went into the red (-2.01%) the day after the announcement of a major restructuring plan that scale is expected to result in another annual loss for Germany’s largest bank.
Sodexo loses 4.03% in Paris, the largest decline in the SBF 120. The group has warned before the opening that the loss of some contracts would slow growth in the fourth quarter and the next fiscal year.
The rating is further animated by changes of recommendation.
Akzo Nobel (Dutch multinational company) gives 1.22% on deterioration by Citigroup, spent to “sell” on the value, while Pirelli (+ 3.47%) enjoys a recovery of its board by JPMorgan.
On the bond market, the yield on 10-year Treasuries fell modestly to 2.035%, after hitting a one-week high of 2.068% on Friday, supported by the prospect of the Fed dropping rates less quickly than expected.
In Europe, the 10-year German benchmark rate for the eurozone followed the same trend and fell by one basis point to -0.37%.
The “dollar index” is virtually stable at mid-session against a reference basket, keeping the gains earned Friday after the report on employment in the United States.
The euro is changing without much change, around 1.122 dollars after falling Friday in session at 1.1208, the lowest since June 19.
Oil prices are stable after rising early in the session at a peak of a week thanks to geopolitical tensions related to Iran, which announced Monday to have exceeded the threshold of 3.67% enrichment of oil. uranium imposed by the agreement reached in 2015 with the major powers on its nuclear program.
The Turkish lira is down 1.52% after Saturday’s dismissal of Turkish central bank governor Murat Cetinkaya, replaced by vice governor Murat Uysal, who is seen as more accommodating. The BIST index of the Istanbul Stock Exchange yields 1.02%, penalized by the decline in banking stocks.
For its part, the ten-year Greek reached a historic low of 2.014% after the broad victory of conservatives New Democracy in the parliamentary elections on Sunday, reviving hopes for further measures to revive the country’s economy.