Caution in sight in Europe, between hopes and economic and health fears (update), News from companies

(Updated with CAC futures, Lagarde statements, bond market in Europe) * European indices expected in scattered order * Wall Street futures oriented in the green * Hopes for the next vaccine and US stimulus plan * But the GDP Chinese Q3 disappointment and health fears persist by Blandine Henault PARIS, October 19 (Reuters) – The main European stock markets should open on a cautious note on Monday, torn between the deterioration of the health situation, particularly in Europe, and the disappointment on the Chinese GDP and, on the other hand, the hopes of an upcoming vaccine against the coronavirus and of a new stimulus plan in the United States. Futures contracts report a rise of 0.33% for the Parisian CAC 40, a stable opening for the Dax in Frankfurt and a decline of 0.13% for the FTSE in London. By expressing on Friday its hope of being able to file in November an application for approval of the vaccine against the coronavirus that it is developing with the German BioNTech, the American pharmaceutical group Pfizer has greatly contributed to the measured optimism of investors. Another element of support, Democratic Speaker of the House of Representatives Nancy Pelosi said on Sunday that she was optimistic about an agreement on a new stimulus package ahead of the presidential election on November 3, despite the disagreements that persist with the Trump administration. The White House last week proposed a $ 1.8 trillion plan to support the U.S. economy but the Democrats, who control the House of Representatives, are asking for $ 2.2 trillion. Pending a possible agreement, the Republican-majority Senate will vote Wednesday on targeted aid measures limited to $ 500 billion. These hopes nevertheless clash with the health reality as new coronavirus infections in the world exceeded 400,000 on Friday, a daily record that comes as Europe strengthens its restrictive measures in the face of a new epidemic wave. A situation which pushes central bankers to reiterate their promises to do their utmost to support the economy. “If more needs to be done, we will do more,” European Central Bank (ECB) President Christine Lagarde said Monday in an interview with Le Monde. In addition, the Chinese statistics of the day came out mixed. China’s economic recovery disappointed in the third quarter, growing 4.9% year-over-year, below analysts’ expectations. However, industrial production and retail sales picked up in September, suggesting a stronger rebound for the fourth quarter. VALUES TO LOOK FOR: A WALL STREET Futures on US indices move higher after a scattered close on Friday. The Dow Jones gained 0.39% on the weekend to 28,604.21 points and the S & P-500 gained 0.02% to 3,483.92 points. For its part, the Nasdaq Composite fell 0.36% to 11,671.44 points. Pfizer stock finished with a gain of 3.83% after its statements on an application for approval of the vaccine against the coronavirus. IN ASIA The Tokyo Stock Exchange ended up 1.11%, in the wake of the rise in Wall Street futures. On the other hand, the Chinese stock markets are lagging behind, penalized by the disappointment on Chinese GDP for the third quarter. The Shanghai Stock Exchange Composite Index fell 0.55%. EXCHANGE / RATE Movements are limited in the forex market, where the dollar is virtually unchanged against a basket of benchmark currencies after gaining 0.7% last week. The euro is moving to $ 1.1708, not far from a two-week low hit at the end of last week. On the bond market, the yield on ten-year Treasuries gained more than one basis point, to 0.7573%, while its German equivalent was unchanged in early trading, at -0.622%. OIL Crude oil prices are trending down, under the blow of the disappointment on the figure of the Chinese GDP. The barrel of Brent lost 0.42% to 42.75 dollars and that of US light crude dropped 0.44% to 40.7 dollars. NO MAJOR ECONOMIC INDICATOR ON TODAY’S AGENDA MARKET SITUATION: (Some data may show a slight lag) ASIAN EXCHANGES Indices Last Var. Var. % YTD Nikkei-225 points 23,671.13 +260.50 + 1.11% + 0.06% Topix 1,637.98 +20.29 + 1.25% -4.84% Hong Kong 24,521.60 +134.81 + 0.55% -13.01% Taiwan 12,908.34 +157.97 + 1.24% + 7.60% Seoul 2,346.74 + 5.21 + 0.22% + 6.78% Singapore 2,544.75 + 11.73 + 0.46% -21.04% Shanghai 3,316.57 -19.79 -0.59% + 8.74% Sydney 6,229.40 +52.60 + 0.85% -6.80% The closing in Tokyo: WALL STREET The previous closing: Indices Dernier Var. Var. % YTD Dow Jones 28,606.31 +112.11 + 0.39% + 0.24% S & P-500 3,483.81 +0.47 + 0.01% + 7.83% Nasdaq 11,671.56 -42.32 -0.36% + 30.08% Nasdaq 100 11,852.17 -46.41 -0.39% + 35.72% Detail of the session on Wall Street: “The Day Ahead” – Update on the next session at Wall Street EUROPEAN MARKETS CAC 40 and EuroStoxx50 futures Stocks to watch in Paris and in Europe: The previous session: Indices Closing Var. Var. % YTD Eurofirst points 1,422.19 +18.40 + 1.31% -12.42% 300 Eurostoxx 3,245.47 +52.78 + 1.65% -13.34% 50 CAC 40 4,935.86 +98.44 + 2.03% -17.43% Dax 30 12,908.99 +205.24 + 1.62% -2.57% FTSE 5,919.58 +87.06 + 1.49% -21.52% SMI 10207, 13 +139.17 + 1.38% -3.86% CHANGES Price Watch Var. % YTD Euro / Dlr 1.1708 1.1718 -0.09% + 4.44% Dlr / Yen 105.40 105.40 + 0.00% -3.17% Euro / Yen 123.42 123.48 – 0.05% + 1.21% Dlr / CHF 0.9157 0.9146 + 0.12% -5.38% Euro / CHF 1.0720 1.0716 + 0.04% -1.22% Stg / Dlr 1.2935 1.2913 + 0.17% -2.44% Index $ 93.7180 93.6820 + 0.04% -2.55% RATE Last Var. Spread / Bund (pts) 10-year Bund -0.6230 +0.0000 2-year Bund -0.7760 -0.0010 10-year OAT -0.3430 +0.0040 +28.00 10-year Treasury 0.7573 + 0.0130 Treasury 2 years 0.1492 +0.0040 PETROLEUM (Ongoing Previous Var Var% YTD dollars) t Light gross 40.71 40.88 -0.17 -0.42% -33.49% US Brent 42.75 42.93 -0.18 -0.42% -35.26% (Edited by Patrick Vignal)

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