The return on risky assets is confirmed

The return on risky assets is confirmed



EUROPEAN ACTIONS ARE GROWING

PARIS (Reuters) – European stocks rose in mid-session Monday after reassuring reports that economic activity in China had returned to normal, but growth came at a slower pace without the presence of most US investors, a day in the United States. holiday. States.

In Paris, CAC 40 around 10:45 GMT gained 0.68% to 6,559.82 points, the highest since April 29. In London, the FTSE 100 takes 0.04% and in Frankfurt the Dax strengthens by 0.67%.

The EuroStoxx 50 index rose by 0.8%, FTSEurofirst 300 by 0.53% and Stoxx 600 by 0.5%.

The one that recovered by almost 3% last week is thus moving to the best level since May 5 and is reducing its decline to less than 1% since the beginning of the month. However, trade volumes at noon represent less than a third of their average daily level in recent weeks.

Investors are gradually regaining the appetite for risk in the face of easing fears that have been weighing heavily on stock market developments for several weeks, be it inflation or health restrictions in China.

The Shanghai authorities have announced that the lock in the city will be lifted on Wednesday at 00:00, a key step in the return of economic activity to normal, supported by exceptional support measures.

At the same time, expectations of tightening monetary policy are receding after a number of indicators indicated that inflation may have peaked.

“Global growth is slowing, which is affecting the prices of cyclical commodities such as base metals. Concerns about the Fed’s rate hike are worrying. The default ‘fed funds’ rate for September 2023 has fallen, from 3.40% at the beginning of the month. to 2.90% today, ”notes Vincent Chaigneau, head of research at Generali Investments, who nevertheless considers it premature to increase exposure.

VALUES IN EUROPE

The gradual “reopening” of the Chinese economy benefits luxury stocks for which China is a key market: Hermès, Kering and LVMH gain between 3.3% and 4.2% in Paris, while Richemont in Switzerland wins 4.53% and Burberry in the UK 1. 47%. %.

However, the strongest sector growth is in high-tech (+ 2.39%), which benefits from the prospect of a continuing recovery in the US Nasdaq.

In addition, Siemens won 3.12% after winning a € 8.1 billion contract to build high-speed rail links in Egypt, which is the largest ever in the group’s history.

The Stoxx index of European oil and gas stocks fell 0.54% after reaching its highest level since October 2018 in the morning.

Sanofi sells 3.28% after the US Food and Drug Administration (FDA) postponed the start of testing for the over-the-counter product Cialis, a drug for erectile dysfunction.

RATE

Eurozone government bond yields rose sharply after initial inflation data from Spain and several German Länder indicated that consumer price inflation was still a long way off.

In Spain, the inflation rate calculated according to European standards (HICP) has actually risen to 8.5% in one year, compared with 8.3% last month. And in the German state of North Rhine-Westphalia, it reaches 8.1%, a figure above expectations.

The first estimate for the whole of Germany will be published at 12:00 GMT and the Reuters consensus puts it at 8.0% after 7.8% in April.

The ten-year Bund yields more than eight basis points at 1.062% and its French equivalent is seven points at 1.574%.

CHANGES

The recovery of European stocks and the development of market expectations regarding the development of US rates continue to penalize the dollar, a trend highlighted by the closure of Wall Street: the index, which measures the dollar’s fluctuations against the reference basket, fell 0.25% and fell back to April 25.

The “dollar index” thus points to the first negative monthly performance after five months with a drop of around 1.5% so far.

The euro (+ 0.43%) also benefited from inflation data in Germany and Spain and confirmed its return above 1.0750, the highest level in five weeks.

OIL

The price of oil has reached its highest level since the end of March, due to speculation about an agreement within the European Union to ban Russian oil imports in the Council, which will open at the end of the day, a factor to which the prospect of a recovery in Chinese demand adds.

The market also does not expect any change in the production strategy of OPEC and its allies – including Russia – at their meeting on Thursday.

Brent rose 0.31% to $ 119.80 a barrel and West Texas Intermediate (WTI) rose 0.4% to $ 115.53.

(Written by Marc Angrand, edited by Jean-Michel Bélot)

.



Source link

Leave a Comment

Your email address will not be published.