THE REBOUND CONTINUES IN EQUITIES WHILE WAITING FOR JACKSON HOLE
by Laetitia Volga
PARIS (Reuters) – Wall Street is expected to rise on Monday and European stock markets advance at mid-session amid a cautious ebb of the main uncertainties that have scalded the markets in recent days before the central bankers meeting at the end of the week in Jackson Hole in the United States. Futures contracts on major US indices are signaling an opening up 0.3% to 0.4% after falling between 0.6% and 1.1% over the past week as a whole. In Paris, the CAC 40 gained 0.93% to 6,687.56 at 11:15 GMT. In Frankfurt, the Dax takes 0.25% and in London, the FTSE is up 0.49%.
The pan-European FTSEurofirst 300 index is up 0.49%, the Eurozone EuroStoxx 50 0.64% and the Stoxx 600 0.47%.
While last week was marked by the sharp decline in equity markets amid concerns about the evolution of the COVID-19 pandemic, the slowdown in global growth and the reduction in monetary support measures from the Federal Reserve, the The Jackson Hole meeting, the late-summer rendezvous for central bankers, dominates the agenda for the days to come.
If Christine Lagarde, President of the European Central Bank, will not be present, her Fed counterpart, Jerome Powell, is due to deliver a speech and her speech will focus the attention of market players, eager to learn more about the possible slowdown in the institution’s asset purchases.
“One of the key questions is when will the ‘tapering’ begin. I think it’s not certain that Jerome Powell will comment on this this week at all – he could wait until September, or even November, to do so. a major announcement on this, ”said Marco Willner, head of investment strategy at NNIP.
Dallas Fed Chairman Rob Kaplan said on Friday he might reconsider his stance for reducing support for the economy in the near future if the Delta variant weighs on growth.
While waiting for Powell’s intervention on Friday, investors took note of solid growth in private sector activity in the euro area in August despite a slight slowdown from the nearly 20-year high recorded the previous month.
VALUES TO FOLLOW AT WALL STREET
VALUES IN EUROPE
The general rebound in equities primarily favors cyclical stocks, such as energy (+ 1.46%) and transport and leisure (+ 0.95%).
The Stoxx retail index rose 1.45%, backed by Sainsbury’s which jumped 14.4% after a press article claiming the UK’s second-largest supermarket chain attracts the interest of several private equity funds -investment.
In Paris, LVMH (+ 3.32%) and Kering (+ 3.32%) are among the strongest increases in the CAC 40 after having suffered heavily from risk aversion last week.
Valneva takes 5.55% after launching the authorization request procedure for its COVID-19 vaccine candidate with the British health agency. BioNTech advances 6.25% on the back of press information on the final validation by the FDA of its vaccine developed with Pfizer.
On the downside, the Française des jeux fell by 1.70% after the lowering of advice from Goldman Sachs to “sell”.
The dollar is down 0.27% against a basket of benchmark currencies after hitting a more than nine-month peak on Friday amid concerns about the outlook for global growth.
The euro climbs back to $ 1.1725, moving away from the low at 1.1662 hit last week.
On the cryptocurrency side, bitcoin (+ 1.88%) crossed the $ 50,000 threshold for the first time since mid-May.
RATES The renewed interest in equities favors the rise in bond yields: the ten-year US dollar recovered nearly two basis points to 1.2734% and its German equivalent fell to -0.47% against -0.495% on Friday at the close .
Oil prices are climbing after a series of seven sessions of decline, supported by the depreciation of the dollar despite lingering concerns around the Delta variant of the coronavirus.
A barrel of Brent gained 3.07% to 67.18 dollars and US light crude 2.98% to 63.99 dollars.
(Laetitia Volga, edited by Blandine Hénault)