The stock market in Europe is expected to grow, China assures about COVID

The stock market in Europe is expected to grow, China assures about COVID



EXPECTED EUROPEAN EXCHANGES ON GROWTH

lähde: Laetitia Volga

Paris (Reuters) – Major European stock markets are expected to open in the green on Monday thanks to the announcement of the lifting of restrictions against the COVID-19 epidemic in China and the easing of fears about the rate of increase in Federal Reserve rates. .

The first available figures show an increase of 0.61% for the Paris CAC 40, 0.58% for the Dax in Frankfurt, 0.2% for the FTSE in London and 0.68% for the EuroStoxx 50.

The session should be calmer than usual due to the absence of some investors, on Memorial Day in the United States. Wall Street and the US bond market will reopen on Tuesday.

Asian markets are on the rise, supported by hopes of a return to health and economic normal in China with the gradual lifting of measures against the COVID-19 epidemic in the country.

In Shanghai, which has been closed for two months, “disproportionate” business restrictions will be lifted on Wednesday, authorities said on Sunday, and Beijing has reopened some public transportation and reopened some shopping malls and cultural venues.

Market sentiment should continue to benefit from investor speculation that the Fed will raise rates since September, which will dispel fears of a recession.

Among the indicators of the day, investors will be interested in the first estimate of the consumer price index in Germany in May. The Reuters consensus predicts that inflation will accelerate to 8.0% in one year after + 7.8% in April.

NA WALL STREET

The New York Stock Exchange ended significantly higher on Friday as signs of a sharp rise in inflation and strong consumer spending forced investors to set out on a three-day long weekend with growing optimism about the Fed’s ability to tighten its monetary policy without disrupting the economy. to recession.

The Dow Jones index rose 1.76% to 33,212.96 points, the S & P-500 2.47% to 4,158.24 points, while the Nasdaq Composite closed 3.33% to 12,131.13 points.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei rose 2.3%, the most in more than five weeks, driven by Friday’s sharp rise on the New York Stock Exchange and optimism about the development of the COVID.-19 epidemic in China.

The SSE Composite Shanghai index rose 0.55% and the mainland China CSI 300 index rose 0.69%, led by consumer and travel stocks.

CHANGES

The “dollar index”, which measures the variation of the dollar against a basket of reference currencies, fell for the third session in a row, forex traders reassessed their expectations about the Fed’s monetary policy, which could slow or even halt the fourth-quarter rate hike cycle.

The euro is thus rising to 1.0753, which is close to the one-month high.

OIL

Oil prices are rising and trading at the highest level in two months, ahead of an EU summit on Monday and Tuesday in Brussels on a new package of sanctions against Moscow, which could include an embargo on Russian oil.

The 27 did not agree on this point on Sunday, but will continue negotiations in the morning.

Brent rose 0.48% to $ 120 a barrel and West Texas Intermediate (WTI) rose 0.78% to $ 115.97.

(Written by Laetitia Volga, edited by Bertrand Boucey)

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