The Euronext logo is visible on a building in the La Défense district of Paris.
PARIS (Reuters) – Major European stocks are expected to rise on Monday after Wall Street and Tokyo, for a session that promises to be calm on the eve of the inflation figures in the United States, the need for a strong interest in the news. Rate hikes continue to be the main concern of the markets.
Index futures contracts point to a rise of 0.66% for the Frankfurt Dax, 0.2% for the London FTSE 100 and 0.59% for the EuroStoxx 50. As for the Paris CAC 40 , could be around 0.5% according to the first indications available.
The economic calendar for the day is almost empty, except for the British industrial production figures. More the main economic gain of the week will be the publication Mardi des chiffres mensuels des prix à la consommation (CPI) aux Etats-Unis, attendus en hausse de 8.1% sur un an en août après +8.5% en July.
These statistics will be watched all the more closely as they will be produced a week before the meeting of the Federal Open Market Committee (FOMC) of the Federal Reserve, several of whose members do not hide their desire to continue with the rapid increase in the cost of credit
On Friday, one of the US central bank’s governors, Christopher Waller, spoke in favor of a “significant” rate hike, with St. Louis branch president James Bullard arguing in favor. an increase of three quarters of a percentage point.
“These leaders have made clear the need for the FOMC to continue raising interest rates until they have clear evidence of slowing inflation,” Commonwealth strategist Joseph Capurso of the Bank of Australia said in a note.
The assumption of a 75 basis point rise on September 21 is now considered 91% likely by the CBOE’s FedWatch barometer.
In the euro zone, after the three-quarter rate hike announced on Thursday, several officials from the European Central Bank (ECB) also took advantage of the weekend to continue advocating a more marked tightening in the coming month.
The president of the Bundesbank, Joachim Nagel, stated in particular on a German radio that if the inflation curve does not start to bend, “new clear measures will have to follow”.
ON WALL STREET
The New York Stock Exchange closed sharply higher on Friday, buoyed by technology and growth stocks, which benefited from renewed investor confidence after falling in recent weeks.
The Dow Jones Industrial Average gained 1.19%, or 377.19 points, to 32,151.71, the Standard & Poor’s 500 gained 61.23 points, or 1.53%, to 4,067.41 and the Nasdaq Composite advanced 250.18. points (+2.11%) to 12,112.31.
For the week, the S&P-500 rose 3.65%, the Dow Jones 2.66% and the Nasdaq 4.14%, their first weekly rise since mid-August.
Index futures suggest an open close at breakeven.
On the Tokyo Stock Exchange, the Nikkei index gained 1.06% less than an hour after closing on Wall Street on Friday, driven by large-cap companies such as Fast Retailing (+1.95%) or Tokyo Electron (+1.12%).
Air travel and tourism stocks are also benefiting from reports that the government plans to lift foreign visitor arrival quotas to Japan soon.
In China, markets are closed for the Moon Festival, also known as the Mid-Autumn Festival.
The euro is making the most of ECB officials’ weekend statements in favor of another sharp rise in interest rates: at $1.0084, it gains 0.45% after rising to $1.0130, its highest level since August 18.
Meanwhile, the dollar fell 0.24% against a basket of benchmark currencies ahead of US inflation numbers.
US Treasury yields are little changed across Asia, at 3.3328% for ten-year bonds and 3.561% for two-year bonds.
On Friday, the latter reached its highest level in more than 14 years in session at 3.575% after statements by Fed officials.
The oil market fell again after Friday’s rise of around 4%, with health restrictions in China and the prospect of continued interest rate hikes serving as a pretext for profit taking.
Brent fell 1.5% to $91.45 a barrel and US light crude (West Texas Intermediate, WTI) fell 1.71% to $85.31.
(Written by Marc Angrand, with Kevin Buckland in Tokyo)
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