© Reuters. THE EUROPEAN STOCK MARKETS STEADY AT MID-SESSION
by Laetitia Volga
PARIS (Reuters) – The european markets are evolving on a note on the stable or slightly bearish on Monday at mid-session and Wall Street is expected on a prudent opening, the equity markets are under pressure to respond to the rise in bond yields, while the quarterly business still drive the trend.
In Paris, the CAC 40 ceded 0.1% to 5.407,32 to 11: 20 am GMT. In Frankfurt, the Dax lost 0.09% and in London, the FTSE gives up to 0.05%.
Index pan-european FTSEurofirst 300 declined 0.11% and the Stoxx 600 of 0.07%, while the EuroStoxx 50 euro-zone is virtually unchanged (+0.02 percent).
The index futures new york indicate an opening of Wall Street ‘ close to balance.
The yield on Treasuries, 10-year-old was hit Monday with a peak at 2,9980%, approaching dangerously close to the symbolic threshold of 3% that it has not reached since January 2014.
The trend is the same in Europe where the ten year old German crossed the bar of 0.64%, the highest level since six weeks.
The new movement of selling in the sovereign bonds of long maturity is explained by the increase in the price of oil, which fuels inflation expectations.
“With the pressures on the oil, but also on the price of steel and aluminum, the subject of inflation seems to be making his return after being ousted by the theme of the commercial war”, pointe Rene Albrecht, an analyst at DZ Bank.
Oil prices eased slightly on Monday, evolve not far from their highest since the end of 2014 hit last week.
The dollar, itself, rises to a peak a month and a half in front of a basket of reference currencies, boosted by the rise in Treasury yields.
The euro at the same time gives up only 0.46%, weakened by PMI indicators, mixed in the euro zone.
Traders are waiting for Thursday, the monetary policy meeting of the european central Bank (ECB) at the end of which a status quo is widely expected.
UBS DISAPPOINTS AFTER ITS RESULTS
To the securities, UBS lost 2.7 percent. The swiss bank has shown prudent for the second quarter and traders also evoke a ratio of capital common equity tier 1 that is slightly below expectations.
Fresinius Medical Care recorded a stronger decline in the Stoxx 600 back and forth at 3.77%, the German specialist of dialysis has lowered its target of annual sales.
In Paris, the title Iliad (PA:ILD) yield of 2.98%, penalized by the lowering of the board of analysts of Morgan Stanley (NYSE:MS) who are very cautious about the prospects of the group telecom business.
The increase, the Dutch group Philips wins 4,63% driven by quarterly results better than expected, supported by increasing demand in China and the United States for its medical equipment high-end.
In the news of mergers and acquisitions, Temenos (SIX:TEMN) takes up 4.2% after it announced that it did not want to raise its offers on the specialist software professionals, Fidessa (LON:FDSA) (-1,48%).
(Edited by Blandine Hénault)