Europe starts in the green, Asia mixed

European markets were heading into the green on Monday despite short-term economic risks, motivated by a rebound in sight on Wall Street which did not, however, completely reassure Asian markets.

In Europe, Paris rose by 0.16%, London took 0.68% and Frankfurt 0.75% around 08:20 GMT. Asian indices moved in mixed fashion after Wall Street’s mixed close on Friday, held back by slowing growth amid the ongoing inflation and supply chain shortages.

In Tokyo, where US President Joe Biden announced the launch of a new economic partnership in Asia-Pacific and multiplied warnings to China, the Nikkei index ended up sharply by 0.98%. In Hong Kong, on the other hand, the Hang Seng index was down sharply (-1.26% around 0650 GMT), while the health crisis in China continued to weigh on investor morale. Shanghai was in equilibrium, as was the Sydney Stock Exchange, which ended stable on Monday after the Labor Party’s legislative victory in Australia and the arrival of Anthony Albanese as the new Prime Minister.

In the United States, a recession that can be avoided, according to Joe Biden

For the main American indices, which ended without a marked trend on Friday, the day was set to be auspicious before the opening of Wall Street, delighted by statements from Joe Biden on the move to Japan. The American president estimated that a recession could be avoided in the United States, despite the high inflation that the country is currently experiencing and which is pushing the American Federal Reserve (Fed) to tighten its monetary policy more aggressively.

«Futures on major US indices are positive on Monday as investors see an opportunity to buy prices that have fallen but gains may remain fleeting», nuance Ipek Ozkardeskaya, analyst of Swissquote Bank. “The big question for investors is whether the bottom of the markets has been reached in the short term», observes Xavier Chapard at LBPAM for whom «recession risk increases with rising commodity prices and prolonged lockdowns in China and deteriorating financial conditions».

This week, investors will thus dwell on the minutes of the last meeting of the monetary policy committee of the American central bank to determine whether or not to expect a strengthening of the tightening of monetary conditions.

«At this stage, the US Federal Reserve’s tougher stance has already been priced in by the market, including a small chance of a 75 basis point rate hike at the next mid-June, underlines Ipek Ozkardeskaya. “We should not see any further significant erosion in the markets after the publication of these +minutes+“, according to her, but “this does not mean that the mood is good enough for a sustainable recovery in the markets“. The central bank (Fed) began in March to raise its key rates in order to slow down inflation, which is at its highest in 40 years in the United States.

Astrazeneca’s Covid vaccine approved in EU in 3rd dose

The British pharmaceutical company Astrazeneca (+0.57%) announced on Monday that its anti-Covid-19 vaccine Vaxzevria had been approved as a 3rd dose for adults in the European Union (EU).

Complete takeover of Siemens Gamesa

The action of the specialist in wind turbines Siemens Gamesa jumped 6.54% after the announcement by its parent company, Siemens Energy (+ 2.04%) of a takeover bid for all the missing shares, with a view to to withdraw its subsidiary from the Stock Exchange.

Oil continues to rise

The prices of black gold, which ended the past week on a small rise, continued their path on Monday morning. The price of a barrel of Brent from the North Sea for delivery in July rose by 1.11% to 113.81 dollars around 08:00 GMT. As for the American West Texas Intermediate (WTI), it took 0.66% to 111.01 dollars. The euro regained 0.35% to 1.06 dollars. Bitcoin rose 1.74% to $30,433.