THE EUROPEAN SCHOLARSHIPS DISPERSED AT MID-SESSION
by Laetitia Volga
PARIS (Reuters) – European stock markets are struggling to find a direction on Monday at mid-session, the day being a holiday in the United States, against a background of persistent fears about the health and economic situation. In Paris, the CAC 40 lost 0.29% to 5,595.48 points around 11:33 GMT. The Dax in Frankfurt (+ 0.01%) and the FTSE in London (+ 0.04%) are almost stable.
The pan-European FTSEurofirst 300 index is up 0.13%, the Eurozone EuroStoxx 50 is down 0.32% and the Stoxx 600 is down 0.04%.
The American markets will remain closed on Monday for the celebration of Martin Luther King Day and the European agenda for the day does not include any major economic indicator able to boost the session.
The publication of an acceleration in Chinese growth in the fourth quarter, of 6.5% year-on-year against 6.1% for the consensus, is not enough for the markets to really move forward, the evolution of the pandemic and its consequences on the European and American economy as well as the uncertainties on an effective deployment of vaccines, prompting investors to be cautious.
The Bundesbank has signaled that the German economy is managing to stay afloat but could suffer a major setback if measures to fight the coronavirus are extended again, an option on which Angela Merkel and the leaders of the Länder could debate in the coming days.
The week which begins will be marked by several meetings including the inauguration of US President-elect Joe Biden and the monetary policy meetings of the Bank of Japan and the European Central Bank (ECB) as well as an acceleration of results publications. .
According to Allianz Global Investors, the ECB should reaffirm at the end of its meeting on Thursday its willingness to adjust all its tools if necessary in a context made uncertain by the persistence of the health risk.
VALUES IN EUROPE
Carrefour yields 5.87% after the announcement on Saturday that it was abandoning discussions with the Canadian Alimentation Couche-Tard with a view to a possible merger which the French government was opposed to.
For its first day of listing, the automotive group Stellantis, born from the merger of PSA and FCA, gained 6.92% on the Paris Stock Exchange and 7.26% on that of Milan.
Suez is up (+ 2.92%) after the announcement of a proposal from Ardian and Global Infrastructure Partners (GIP) funds which thwarts the plan to buy out its competitor Veolia, whose share is down 3.20% .
Airlines are down after Boris Johnson’s decision on Friday to strengthen border controls by imposing, in addition to a negative test for COVID-19, a quarantine on all travelers without exception.
IAG, EasyJet, Lufthansa, Ryanair and Air France-KLM lose from 2.16% to 4.07%.
In addition, Infineon takes 3.71% after the raising of the recommendation of Goldman Sachs, passed to the purchase.
RATES / CHANGES
The benchmark yields of the euro zone are unchanged pending the economic and monetary meetings to come in the week. That of the ten-year German Bund is at -0.537% and its French equivalent rises slightly to -0.3027%.
In Italy, the ten-year construction yield has gained nearly two basis points while the President of the Council Giuseppe Conte will try to convince this Monday and Tuesday the elected members of the Parliament to give him their confidence after the defection of the ministers of Italy Viva, the party led by Matteo Renzi.
In the forex market, the dollar edged up against a basket of international currencies, at about a month high. The euro fluctuates little, around $ 1.2073.
Oil prices are wavering between fears related to the increase in COVID-19 cases around the world and the better-than-expected rebound of the Chinese economy at the end of the year.
Brent takes 0.07% to $ 55.14 and US crude 0.23% to $ 52.48.
(edited by Patrick Vignal)