CAUTIONARY INCREASE IN SIGHT IN EUROPE BEFORE INDICATORS
by Blandine Henault
PARIS (Reuters) – Apart from London, the main European stock markets are expected to rise slightly on Tuesday at the opening, caution prevailing before the publication of economic indicators, including the much-awaited US employment report at the end of the week .
Futures are reporting a rise of 0.35% for the Dax in Frankfurt, 0.27% for the EuroStoxx 50 and a decline of 0.3% for the FTSE in London, which closed the day before due to a public holiday.
The first indications available also give the Parisian CAC 40 up 0.34% at the opening.
In the absence of London and Wall Street on Monday, European indices consolidated in calm after recovering to new highs, with hopes of an economic rebound continuing to outweigh fears of an inflationary surge likely to lead to premature monetary tightening.
Investors will follow Tuesday the first estimate of inflation in May for the euro zone as well as the final results of Markit’s PMI surveys in the manufacturing sector. But the highlight of the week will be the release of US employment figures on Friday, which could influence future Federal Reserve decisions.
A WALL STREET
Futures on the major US indices are currently signaling an open without much change on Tuesday after a long weekend, with Monday being a holiday for Memorial Day.
The Tokyo Stock Exchange is down 0.09% as the close approaches, with caution prevailing over US employment statistics.
For their part, the stock markets of mainland China retreated slightly despite the announcement of a rebound in manufacturing activity in May. The manufacturing PMI index calculated by Caixin / Markit stood last month at 52.0, a peak since last December, after 51.9 in April and against a consensus of 51.9.
Chinese values linked to the birth and fertility sector continue to climb after Beijing’s decision to allow couples to have up to three children.
CHANGES / RATES
The dollar fell further against a basket of benchmark currencies (-0.23%), as traders continued to question the prospects of an early normalization of Federal Reserve policy ahead of the release of the report on the Federal Reserve. employment.
The euro has thus returned to more than 1.22 dollars and is moving around 1.2222.
On the bond market, the yield on 10-year Treasuries rose by more than two basis points, to 1.6164%.
Crude prices are rising sharply, still supported by the prospects for improving demand.
A barrel of Brent is up 1.2% to return above $ 70 for the first time in two weeks, to $ 70.15. A barrel of US light crude (WTI) for its part advanced 1.91% to 67.59 dollars.
Investors seem to be ignoring for the time being the possible fallout from the OPEC + meeting on Tuesday during which the oil cartel and its allies should confirm their desire to very gradually increase their production in the coming months to take into account both the resumption of demand and a possible return of Iranian crude to the international market.
(Edited by Jean-Stéphane Brosse)