(Paris) Global stock markets cautiously continued their ascent on Monday after another successful week, as investors still seek to assess the medium-term trajectory of inflation.
In Europe, the indices remained in the green after a new weekly increase last week: Paris advanced 0.40%, exceeding 7100 points. Frankfurt took 0.13% and Milan 0.26% while London crumbled 0.16% at 6:45 am.
For its part, Wall Street should also extend its rise moderately at the opening, the futures contracts of the main indices advancing in a range of 0.20% to 0.33%.
“The current resilience of the stock markets, which remain close to record levels, can be seen as a strong sign of investor confidence in riskier assets,” said Pierre Veyret, analyst at ActivTrades.
Among the supporting factors, the expert lists some signs of improvement in the supply chain, the good quarterly results of companies and a monetary tightening which “still seems far” on the side of the European Central Bank (ECB).
The market was responding positively to better than expected industrial production and retail sales figures in China.
He relied heavily on the virtual meeting to be held in the evening between US President Joe Biden and his Chinese counterpart Xi Jinping, at a time when Beijing and Washington clash on a series of subjects, from trade to human rights through China’s regional ambitions.
“Western equity markets continue to play off the two main economic threats of the moment, namely US inflation and the slowdown in the Chinese real estate sector,” writes Tangi Le Liboux, analyst at brokerage Aurel BGC.
The acceleration of the rise in consumer prices in the United States (to 6.2% in October over one year) and the fall in American consumer confidence, to its lowest level in ten years, could however constrain the bank Central American (Fed) to strengthen its communication concerning the withdrawal of its accommodative monetary policy measures.
But for now, the institution continues to assert that inflation is temporary and will subside as supply chain bottlenecks dissipate.
In Europe, the intervention of the President of the ECB, Christine Lagarde, before the Committee on Economic and Monetary Affairs of the European Parliament, should be followed closely.
“The attention of investors will also be retained by the evolution of the situation vis-à-vis COVID-19 after the implementation of new restrictions in Austria and the Netherlands”, also notes Vincent Boy, market analyst at IG France.
Shell simplifies its structure
The Anglo-Dutch hydrocarbon giant Royal Dutch Shell announced on Monday that it wanted to transfer its headquarters and tax residence from the Netherlands to the United Kingdom, a decision criticized by the Dutch government. The stock took 1.29% to 1,678.40 pence in London.
Cineworld takes action, powered by James Bond
The share of cinema group Cineworld jumped 11.5% to 70.08 pence around 11:25 a.m. GMT in London after the publication of results showing that the latest James Bond boosted turnover beyond the level of ‘before COVID-19.
Airbus takes advantage of order announcements
The Aitrbus share gained 2.37% to 114.80 euros in Paris the day after the announcement of a grouped order for 255 A321 single-aisle aircraft by four companies at the opening of the Dubai air show. In its wake, the equipment manufacturer Safran rose 0.66% to 121.90 euros. In Frankfurt, Lufthansa (+ 2.37% to 6.71 euros, at MDax) was sought after a favorable rating from UBS.
On the oil, euro and bitcoin side
Oil prices retreated on Monday as investors feared the United States would use up its strategic crude reserves or demand would be affected by further health restrictions.
By 6:20 a.m., the price of a barrel of North Sea Brent for January delivery fell 1.61% to $ 80.85.
In New York, a barrel of West Texas Intermediate (WTI) for the month of December lost 1.37% to 79.69 dollars.
The euro was stable (+ 0.02%) at 1.1445 dollars.
Bitcoin rose 2.29% to $ 65,802.