Europe should start the week of central banks up – archyworldys

by Laetitia Volga

PARIS (Reuters) – The main European stock markets are expected to rise on Monday at the start of a week which will be animated by several meetings of major central banks.

According to the first available indications, the Parisian CAC 40 could gain 0.37% at the opening, the Dax in Frankfurt would take 0.4% and the FTSE in London 0.24%.

The days ahead will be dominated by the Federal Reserve’s monetary policy meeting, whose members are expected to discuss a faster reduction in its purchases of securities in the markets. Faced with the high level of inflation, the market is anticipating the announcement on Wednesday of an acceleration in ‘tapering’, seen as the prelude to a rate hike in the United States.

The publication of the future trajectory of rates established by Fed officials (“dot plots”) will be closely followed.

In addition to the Fed, investors will see the results of the Bank of England and European Central Bank monetary policy meetings on Thursday and the Bank of Japan on Friday.

A WALL STREET

New York index futures signal a Wall Street open up 0.3%. On Friday, the New York Stock Exchange finished higher after the publication of a figure on inflation in the United States in line with expectations in November.

The Dow Jones Index gained 0.6% to 35,970.99 points, the S & P-500 gained 0.96% to 4,712.05 points, a closing record, and the Nasdaq Composite advanced 0.73% to 15,630.60 points.

Statistics released by the Labor Department showed that the Consumer Price Index (CPI) rose 6.8% year-on-year, unheard of since 1982 but in line with the Reuters consensus.

IN ASIA

The Nikkei on the Tokyo Stock Exchange ended up 0.71%, supported by gains in tech stocks that followed the solid advance on Wall Street on Friday although caution ahead of the US central bank meeting limited gains .

In China, markets are also advancing as the country’s top leaders pledged to prioritize economic stability in 2022 following the annual Economic Labor Conference, fueling hopes for further stimulus measures to support economic growth. economy in decline.

The CSI300 index gained 0.66%, the Shanghai Stock Exchange 0.47%.

CHANGES

The dollar index, which measures the evolution of the greenback against a basket of benchmark currency, is virtually unchanged.

“We think the bar is high for a ‘hawkish’ surprise from the Fed so unless it makes a major overhaul of its policy (forward guidance) the dollar seems to rally. have to take a break, ”said Jonathan Petersen, economist at Capital Economics.

For its part, the euro evolves slightly, to 1.1286 dollars.

The pound fell 0.26% against the dollar as British Prime Minister Boris Johnson on Sunday said the UK was facing a “tidal wave” of Omicron variant contamination and two doses of vaccines will not be enough to stem this tide.

RATE

The yield on ten-year Treasuries evolves without much change, around 1.491%.

OIL

Oil prices are rising, extending their gains from last Friday, helped by optimism about the limited impact the Omicron variant is likely to have on global economic growth and crude demand.

Brent gained 1.61% to 76.36 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 1.74% to 72.92 dollars.

(edited by Nicolas Delame)