Caution on equities in Europe before a rain of results – archyworldys

by Marc Angrand

PARIS (Reuters) – Major European stock markets ended in disarray on Monday and Wall Street was up cautiously at mid-session as investors limited risk-taking ahead of US tech giants’ earnings releases and a series of appointments -you economical at the end of the week.

In Paris, the CAC 40 lost 0.31% (20.82 points) to 6,712.87 points while in London, the FTSE 100 advanced by 0.25% and in Frankfurt, the Dax took 0.36 %.

The EuroStoxx 50 index ended virtually unchanged, the FTSEurofirst 300 gained 0.13% and the Stoxx 600 0.07%.

At the time of the closing in Europe, Wall Street was moving in the green after a hesitant start: the Dow Jones gained 0.08%, the Standard & Poor’s 500 took 0.29% after a record of 4,560.37 points and the Nasdaq Composite advanced 0.49%.

The European and American stock indices are benefiting in particular from the rise in energy and commodity values ​​with the rise in the prices of basic resources, but their progress is limited by the caution required before the dozens of results publications expected this week. , the busiest in the quarterly period.

Facebook must present its accounts after the close of European markets and in Europe, the agenda of the week includes among others UBS, Schneider Electric, Deutsche Bank, Volkswagen, Nokia and STMicroelectronics.

If the expectations of financial analysts have been revised upwards in recent weeks, the market will closely monitor the results of the big names in American high technology: in addition to Facebook, Microsoft and Alphabet are due to publish on Tuesday, Apple and Amazon on Thursday.

“Facebook and Google could show some weaknesses after the disappointing results of Snap and its warning about the potential decrease in advertising revenue, due to the update of the Apple Store,” said Vincent Boy, IG market analyst France.

The evolution of the Evergrande file also remains to be monitored, he adds.

The macroeconomic agenda for the next few days will be dominated by the meeting of the European Central Bank (ECB), the first estimate of US gross domestic product (GDP) in the third quarter and the first figures for inflation in Germany and in Germany. euro zone in October.

VALUES

In Europe, the rise in commodity prices once again benefited the energy (+ 0.98%) and basic resources (+ 1.81%) sectors, but the automotive compartments (+2 , 28%) and banks (+ 0.84%) were also surrounded.

The steelmaker ArcelorMittal (+ 4.58%) and the manufacturer Stellantis (+ 3.75%) thus posted the two best performances of the CAC 40.

In the banking sector, HSBC took 1.9% after its quarterly results, better than expected, and Sabadell 2.75% after the Spanish group rejected an offer to buy its British subsidiary TSB by Co-operative Bank.

TODAY’S INDICATORS

In Germany, the Ifo business climate index fell in October for the fourth consecutive month with soaring energy prices and bottlenecks affecting supply chains.

CHANGES

After hitting a four-week low against the other major currencies at the start of the day, the dollar has moved forward and is now appreciating 0.16% against a benchmark basket.

The greenback thus benefits from its status as a safe haven before the major economic events of the next few days.

The euro, penalized by the fall in the Ifo index, fell back to around 1.1610 dollars after peaking at 1.1664.

RATE

Eurozone benchmark yields ended the day lower in the wake of the hesitant US bond market and in reaction to the Ifo index, which supports the scenario of slower growth: that of the Bund Ten-year German yielded nearly two basis points to -0.117% and its French equivalent nearly two points to 0.22%.

The ten-year-old American comes down to 1.6299%.

OIL

The price of oil is amplifying its rise and has reached new highs of several years, carried by the reduction of world stocks which risks prolonging the tensions between supply and demand.

Brent gains 0.78% to 86.20 dollars a barrel after hitting 86.70, its highest level since October 2018 and US light crude (West Texas Intermediate, WTI) takes 0.55% to 84.22 dollars after peaking at 85.41, highest since October 2014.

In a new study, Goldman Sachs estimates that the recovery in demand could push a barrel of Brent to more than 90 dollars by the end of the year.

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