INFLATION IS EXPECTED IN EUROPE, THE ECB AND THE USA THIS WEEK
lähde: Clauda Chendjoua
Paris (Reuters) – Major European stock markets are expected to pick up on Monday as Asian markets stabilize, while the beginning of the week is marked by the European Central Bank’s monetary policy meeting and inflation figures at the European Central Bank. UNITED STATES.
According to the first available indications, the Paris CAC 40 should open by 0.73%, Dax in Frankfurt by 0.95%, while the London FTSE could gain up to 0.90% after four days of closing associated with the platinum jubilee celebrations. The Queen Elizabeth II. Eurostoxx 50 is expected to increase by 0.93%.
The economic agenda of the day in Europe and the United States is empty, but a meeting of the Governing Council of the European Central Bank (ECB) will take place on Thursday and US consumer price statistics for the month will be published on Friday. May.
The persistence of high inflation and fears of accelerating monetary tightening remain central to investors’ concerns.
A Labor Department report released Friday showed that the US economy created more jobs than expected in May (390,000 versus 325,000 expected), while the unemployment rate remained stable at 3.6%, indicating a robust labor market and could encourage. the US Federal Reserve to accelerate the growth of its interest rates.
In the United States, markets expect rates to rise by half a point in June and July and by almost 200 basis points by the end of the year.
In the euro area, the European Central Bank (ECB) has indicated that its deposit rate will return to positive levels by the end of September, and euro area money markets now expect rates to rise by 125 basis points by the end of the year. September, the end of the year and an increase of 100 points by October.
VALUES TO BE FOLLOWED BY:
The United States has instructed Italian and Spanish oil companies Eni and Repsol to supply oil from Venezuela to Europe next month to replace Russian oil, five sources familiar with the matter said.
NA WALL STREET
The New York Stock Exchange ended lower on Friday as US job data dashed hopes that the Federal Reserve (Fed) would suspend an aggressive tightening of monetary policy to halt the sharp rise in inflation.
The Dow Jones index fell 1.05% (348.58 points) to 32,899.70 points, the S&P-500 fell 1.63% (68.28 points) to 4,108.54 points and the Nasdaq Composite fell 2.47% (304.16 points) to 1273.00 points
Apple, which hosts its traditional annual development conference on Monday, lost 3.9% According to Reuters, the European Union should agree on June 7 to adopt a universal USB-C charger for all smartphone and tablet manufacturers.
Tesla fell by 9.2%, its boss Elon Musk expressed in the e-mail, which saw Reuters, his doubts about the economic outlook.
The Tokyo Stock Exchange closed slightly on Monday, driven by rising US stock and Chinese stock futures. The Nikkei index strengthened by 0.56% to 27,915.89 points and the broader Topix by 0.31% to 1,939.19 points.
MSCI index including shares from Asia and the Pacific (excluding Japan) strengthened by 0.12%
In China, Shanghai SSE Composite gained 0.76% and CSI 300 1.21% following the release of the Caixin PMI for May. Although this index shows a decline in activity for the third month in a row, it indicates an improvement, from 36.2 in April to 41.4 in May, which is the bar 50 separating growth and decline.
The prospect of an immediate rate hike by the ECB supports the euro, which has stabilized above $ 1.07, well outside its recent low of 1.0348. The single European currency strengthened by 0.07% to $ 1.0727 on Monday, reaching a seven-year high against the yen at 140.35 after jumping 2.9% last week.
The dollar, also supported by expectations of rate hikes, was stable (-0.05%) against the basket of benchmarks after rising 0.4% last week.
The yield on ten-year US government bonds, which reached a two-week high of 2.986% on Friday after the employment report, stagnated at 2.9497% on Monday.
In Europe, the yield on the ten-year German bond, which climbed to 1.281% in the session on Friday, the highest value since 2014, also remained virtually unchanged at 1.267%.
Oil prices are supported by a sharp rise in the price of oil supplies from Saudi Arabia to Asia in July and fears of insufficient supply despite OPEC +’s decision to increase its monthly production to 648,000 barrels per day (bpd) in July and August.
“Perhaps one-third to one-half of what OPEC + has promised will actually come to market in the next two months,” said Vivek Dhar, a CBA commodity analyst.
“While this increase is absolutely necessary, it lags behind expectations of demand growth, especially given the European Union’s partial ban on Russian oil imports,” he added.
A barrel of Brent crude declined 0.58% to $ 120.41 and a barrel of light US oil (West Texas Intermediate, WTI) down 0.61% to $ 119.55.
NO SIGNIFICANT ECONOMIC INDICATOR ON THE 6 JUNE PROGRAM
(Written by Claude Chendjou)