Market: Caution on stocks ahead of Eurozone inflation and higher oil prices (UPDATED)

PARIS (Reuters) – Les principales Bourses européennes sont attendues en légère baisse mardi, la hausse marquée du pétrole, la perspective d’une progression timide de Wall Street et les interrogations récurrentes sur l’inflation et les tauxt d’investeurêrê caution.

Index futures point to a decline of 0.31% for the CAC 40 in Paris, 0.51% for the Dax in Frankfurt and 0.49% for the EuroStoxx 50, while the FTSE 100 in London, weighed more in oil stocks, may open soon to balance .

While US markets were closed Monday for Memorial Day, European stocks rose, benefiting particularly from the Shanghai authorities’ announcement of the final lifting of health restrictions on Wednesday.

Consequently, the Dax and FTSE 100 indexes consolidated their gains in May, while the European CAC 40 and Stoxx 600 indexes pared their monthly losses.

The last session of the month could be more mixed due to an acceleration in oil prices and renewed concerns about inflation after the above-expected numbers were published on Monday in Spain and especially in Germany.

The first estimate of eurozone inflation in May, which may influence the European Central Bank’s decisions next week, will be released at 09:00 GMT. It will be preceded by French inflation at 06:45 GMT.

In China, official PMIs show that the decline in activity eased in May in both industry and services, with the composite index rising to 48.4 from 42.7 in April.

The values ​​to be followed:

oil

And the oil market is already on the rise on Monday, amplifying its progress after the agreement concluded this evening by the heads of state and government of the European Union aimed at reducing their imports of Russian crude by 90% by the end of the year. .

Brent crude rose 1.71 percent to $123.75 a barrel, and US light crude (West Texas Intermediate, West Texas Intermediate) rose 3.51 percent to $119.11. Both are at their highest levels since March 9.

On Wall Street

After the Memorial Day weekend, major US index futures are pointing to a near-flat open for the Dow and S&P 500 and up 0.19% for the Nasdaq.

The three major US indexes ended sharply on Friday, benefiting from signs that inflation has peaked and US consumption has been flat: the Dow Jones rose 1.76% to 33,212.96, and the S&P-500 rose 2.47% to 4158.24 and the Nasdaq Composite 3.33% to 12131.13.

In doing so, the S&P 500 raised its lead over the entire past week to 6.6%, its best weekly performance since November 2020.

In Asia

The Tokyo Stock Exchange had a swing session that ended with the Nikkei down 0.33%, as higher oil prices and questions about the development of interest rates discouraged buyers.

In China, on the other hand, the trend is up strong and benefits mainly from consumption-related and high-tech stocks after the confirmation of the containment lift in Shanghai: the Shanghai Composite SSE gains 0.78% and CSI 300 1.23%.

the changes

The dollar remained virtually unchanged against a basket of major currencies (-0.05%), not far from Monday’s five-week low. However, it regained its strength against the euro, which fell to 1.0739 from 1.0786, at its highest levels in Monday’s session, after inflation figures in Spain and Germany.

However, the single currency is on track to record its best monthly performance for a year with gains at this point of just under 2% against the dollar, thanks to expectations of an increase in interest rates from the European Central Bank.

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US Treasury yields rose sharply in Asian trading after the long Memorial Day weekend, benefiting from the Bund’s strengthening after German inflation figures and comments by Christopher Waller, a US Federal Reserve governor, in favor of several half-year increases. A point in the Federal Funds rate.

The ten-year takes nearly nine basis points to 2.835% and the two-year over six basis points to 2.5565%.

The ten-year-old German, who jumped eight points on Monday, continues his rise in the first exchanges in Europe at 1.068%.

(Written by Marc Angrand, Edited by Matthew Brotthard)

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