(Paris) The stock markets are starting the week on the right foot, both in Europe and across the Atlantic where Wall Street is announced on the rise, still confident in a strong recovery in economic activity.
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Around 8:10 a.m., Europe rebounded from Friday’s declines: Paris took 0.61%, as did Milan (+1.19%) and Frankfurt (+ 0.75%). Place de Londres was closed due to a public holiday.
Wall Street was heading for a higher opening, according to futures contracts on its main indices: the Dow Jones gained 0.58%, the NASDAQ 0.30% and the S&P 500 0.55%.
In Asia, Hong Kong, the only place open on Monday, fell back. The Japanese and Chinese markets were closed for Golden Week.
“Considering the gains that we have experienced in recent months, the markets could be faced with the risk of having already anticipated too much, especially as we continue to break historic records in terms of indices, especially across the Atlantic”, warns Sebastian Paris Horvitz, analyst at LDPAM.
The good news having already all been integrated in anticipation, the markets are now struggling to find a catalyst and to exceed the very high levels at which they have been evolving for several weeks.
But “the debate on inflation” which already agitated the markets at the beginning of the year, “feeds fears of a reduction in asset purchases on the part of the Federal Reserve”, analyzes Franklin Pichard, CEO of Kiplink Finance, even if the Fed assures us that this is not yet on the agenda.
“Treasury Secretary Janet Yellen ruled out this weekend the risk that the Biden administration’s stimulus plans favor a return to inflation as long as planned spending will be spread over ten years,” he adds .
In terms of health, the situation is contrasted with Brazil and India – where nearly 400,000 new contaminations were recorded in 24 hours – which remain the two countries most affected currently by the COVID-19 epidemic, while that France, Greece and Portugal deconfin.
Regarding vaccinations, 100 million Americans are fully vaccinated against the virus. And the global Covax device will have 500 million doses of Moderna’s anti-COVID-19 vaccine, which has just been approved by the WHO.
The European Commission has also proposed to allow entry into the EU to travelers who have received the necessary doses of COVID-19 vaccines authorized at European level.
In terms of indicators, in France, activity in the manufacturing sector continued to grow strongly in April, despite a slight slowdown in growth.
The Hong Kong economy, for its part, returned to growth in the first quarter, emerging from an 18-month recession, the longest in decades.
On the bond market, rates stabilized, after a slight tension in the morning.
Investors will learn about the ISM manufacturing activity index in the United States on Monday.
Fed Chairman Jerome Powell will deliver a speech at the end of the day.
On the business side, the American luxury group Estée Lauder will publish its results before the opening of the New York Stock Exchange, and a lawsuit filed by Epic Games against Apple for abuse of dominant position opens on Monday.
The car moves forward despite everything
In France, the number of new registrations in April remained below its level before the health crisis. The production of the automotive sector was particularly penalized by the global shortage of electronic components.
In Paris, the situation was mixed for companies in the sector, Faurecia was in the red (-0.45% to 44.70 euros), while Stellantis (+ 1.23% to 13.98 euros) and Renault (+ 1.48% to 34.01 euros) went up.
In Frankfurt, car manufacturers progressed: BMW took 1.22% to 84.42 euros, Volkswagen advanced 1.71% to 220.40 euros and Daimler was up 1.24% to 74.98 euros.
On the oil, euro and bitcoin side
A barrel of Brent from the North Sea for delivery in July, of which Monday is the first day of use as a benchmark contract, was stable (0.00%) at 66.76 dollars, in London.
In New York, WTI’s US barrel for June rose 0.36% to $ 63.81.
On the currency side, the euro rose 0.15% against the greenback, to 1.2051 dollar.
Bitcoin rose 3.11% to $ 58,838.
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