(Reuters) – European stock markets ended in the red on Monday, punished by profit-taking after a U.S. ISM index came in below expectations.
In Paris, the CAC 40 ended down 0.96% to 7,200.91 points. The UK Footsie lost 0.1% and the German Dax 0.54%.
The EuroStoxx 50 index fell 0.7%, the FTSEurofirst 300 0.44% and the Stoxx 600 0.48%.
Risk appetite eased on Monday after dominating Friday’s session following the US debt deal and data showing a slowdown in US wage inflation in May.
Investors chose to take profits, especially after the publication of the Institute for Supply Management’s (ISM) monthly survey on service sector growth, which showed a slowdown in May.
The ISM index fell to 50.3 in May from 51.9 the previous month, while economists polled by Reuters had on average expected a figure of 52.2.
Market operators also noted statements from Christine Lagarde, the president of the European Central Bank, who said during a hearing in the European Parliament that she saw no clear sign of a peak in core inflation in the euro area, comments that should confirm market expectations of further rate hikes this month and in July.
Bundesbank President Joachim Nagel, for his part, said it was not certain that interest rates would peak this summer.
VALUES
In terms of value, Asos rose 7% following news reports that the online fashion site received an offer in December from Turkish competitor Trendyol – backed by Alibaba – for 1 billion. GBP.
UBS, which said on Monday it hoped to complete the takeover of Credit Suisse “from June 12”, rose 0.28% on the Zurich exchange.
BY WALL STREET
At the close in Europe, the Dow Jones fell 0.27%, while the Standard & Poor’s 500 rose 0.19% and the Nasdaq 0.44%.
Apple is trading at record highs ahead of its annual Software Developers Conference later today, where the iPhone maker is expected to announce a new mixed reality headset.
TODAY’S INDICATORS
In the euro zone, private business activity slowed but continued to grow in May, supported by the dominant services industry, which offset the prolonged slowdown in the manufacturing sector, the S&P Global survey showed on Monday. .
In France, growth in services slowed in May, while it remained solid in Germany, suggesting a return to growth in Europe’s largest economy, which entered a technical recession in the first quarter.
CHANGES
The dollar is practically unchanged (-0.07%) against a basket of international currencies after the publication of the ISM index in the United States.
The euro, meanwhile, rose 0.1% to $1.0714.
RATE
Eurozone benchmark interest rates rose on Monday. That of the 10-year German, which had fallen 28.5 basis points last week, ended up more than 6 basis points at 2.3%. The yield on French 10-year bonds rose 6 basis points to 2.9% after S&P left France’s ‘AA’ rating unchanged on Friday.
In the US, the yield on ten-year government bonds, on the other hand, lost 1.6 basis points to 3.67%.
OIL
Oil prices are rising after Saudi Arabia in July announced a production cut of another million barrels per day.
Brent rose 1.5% to $77.27 a barrel. barrel and US crude (West Texas Intermediate, WTI) 1.41% to $72.75.
(Written by Diana Mandiá, edited by Blandine Hénault)
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