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Rise in sight in Europe despite fears of recession

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Rise in sight in Europe despite fears of recession
Written by madishthestylebar

EUROPEAN STOCK EXCHANGES EXPECTED ON THE RISE

by Laetitia Volga

PARIS (Reuters) – The main European stock markets are expected to rise on Monday at the opening of a session whose volumes should be little expanded with the closure of American markets due to the national holiday in the United States.

The first available indications give a gain of 0.61% for the Parisian CAC 40, 0.49% for the Dax in Frankfurt, 0.73% for the FTSE in London and 0.52% for the EuroStoxx 50 .

The Stoxx 600 lost 1.4% and the CAC 40 nearly 2.3% last, marked once again by fears of a recession triggered by monetary tightening by central banks, which are trying to stem the rise. prices.

According to the Atlanta Federal Reserve’s GDP Now forecasting model, the US economy is expected to contract by an annualized 2.1% in the second quarter, implying a technical recession for the world’s leading power after the 1.6% drop in its GDP over January-March.

The Federal Reserve will release the minutes of its latest monetary policy meeting this week, which approved a three-quarter point hike in its main interest rate, its biggest hike since 1994.

Investors are also planning on the publication on Friday of the monthly report on American employment and on the earnings season, which will begin in ten days with American banks.

“Earnings season is often seen as a ‘growth relay’ for equity markets. The second quarter, however, should mark the beginning of the decline in analysts’ estimates, work that has yet to be done. The war in Ukraine and especially inflation should be at the heart of business discussions in the coming weeks,” said John Plassard at Mirabaud.

AT WALL STREET

The New York Stock Exchange ended higher on Friday on the eve of a three-day National Day weekend, as investors entered the second half of the year awaiting the next market catalyst.

The Dow Jones Industrial Average gained 1.05%, or 321.83 points, to 31,097.26 points. The S&P-500 gained 39.95 points, or 1.06%, to 3,825.33 points. The Nasdaq Composite advanced 99.11 points (+0.90%) to 11,127.85 points.

The semiconductor-related index ended down 3.83% after Micron Technology (-2.95%) released a quarterly revenue forecast that fell short of expectations.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei gained 0.52%, supported by the “utilities” while Japan continues to face an unprecedented heat wave.

In China, the progression of the Shanghai SSE Composite (+0.2%) and the CSI 300 (+0.23%) is slowed down by the announcement on Sunday of tighter restrictions in several cities in the east of the country. due to the appearance of new outbreaks of COVID-19 contamination.

CHANGES

The dollar is unchanged against a basket of benchmark currencies and the euro, also stable, is trading at 1.0429.

OIL

Oil prices fell slightly as fears of a global recession weighed on the market.

Brent fell 0.1% to 111.52 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.12% to 108.3 dollars.

(Written by Laetitia Volga, edited by Bertrand Boucey)

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