After the victory of the far right in Italy, European stock exchanges are expected to open lower. The Eurostoxx 50 opens at 3,348.60 points (-2.29%), the CAC 40 at 5,783.41 points (-2.28%), the DAX 40 at 12,284.19 points (-1.97%), the FTSE 100 at 7,018.60 points (-1.97%), the SMI at 10,137.78 points (-1.55%), the AEX at 639.28 points (-2.76%)), the BEL 20 at 3,420.99 points (-2.23%), the IBEX 35 at 7,583.50 points (-2.46%), the DJIA at 29,590.41 points (-1.62%), the Nasdaq at 10,867.93 points (-1.80%), the S&P 500 at 3,693.23 points (-1.72%) and the Nikkei 225 at 26,437.43 points (-2) 6.4%).

As for exchange rates, the change from the close mentions that in New York, EUR/USD is at 0.9631 (-0.61%), EUR/JPY at 138.74 (-0.14%) and USD/JPY at 144.07 (+0.50%).

On Monday, September 26, the 2023 finance bill, which will be presented to the Council of Ministers later in the day, will take center stage in France. Thus, the Minister of Economy and Finance, Bruno Le Maire, and the Minister Delegate in charge of Public Accounts, Gabriel Attal, will be heard, starting at 15:00, by the Finance Committees of the National Assembly and the Senate.

Quadient reports its second-quarter results for the company. Over the weekend, TotalEnergies announced that it had been selected as the “first international partner” for the North Field South (NFS) liquefied natural gas (LNG) project in Qatar, in which it will hold a 9.375% stake.

After the victory of the far right in the Italian parliamentary elections, European stock exchanges are expected to continue their decline on Monday, September 26.

According to data from the IG Markets broker, the CAC 40 futures contract fell by 41 points, or 0.7% around 7:40am. The contract on FTSE Mib, the flagship index of the Milan Stock Exchange, dropped 161 points, or 0.8%, and the contract on DAX 40 dropped 102 points, or 0.8%. In contrast, the FTSE 100 contract gained 14 points, or 0.2%.

The Italian public debt represents some 150% of its gross domestic product (GDP). This situation, combined with the country's weak growth, makes Italy vulnerable to bond market sell-offs if investors lose confidence in Rome's fiscal policy.

Wall Street closed down sharply on Friday the 23rd in the United States. Market operators continue to digest the Federal Reserve's (Fed) restrictive announcements. A new week was marked in red by the major American indices. The S&P 500 dropped 4.6%, the DJIA fell 4% last week, and the Nasdaq dropped 5.1%. In Asia, on Monday 26, the markets gave way. The Nikkei index on the Tokyo Stock Exchange fell by 2.5%, while the Hang Seng index lost 0.2% in Hong Kong at the end of the session. At the same time, Shanghai Composite gave in.

On Friday the 23rd, US Treasury bond yields ended higher. Supported by the prospect of further Federal Reserve (Fed) rate hikes, the two-year bond rate, which is very sensitive to changes in monetary policy, has reached its highest level in nearly 15 years.

Last week, the comments of the Fed Chairman and the planned increase by the Fed prompted investors to raise their expectations of monetary tightening, which supported US Treasury securities for two, ten, and 30 years.

However, markets continue to fear that the United States will enter a recession if the central bank goes too far in its monetary crunch.

After the victory of the far right in the parliamentary elections, the evolution of Italian government bonds and the interest rate gap between these and German sovereign debt will be closely monitored in Europe. The yield on the 10-year Italian bond (BTP) ended at 4.354% and that of the German Bund with the same maturity closed at 2.025% last Friday.

On Monday 26, the euro and the pound sterling continued to fall against the dollar while more and more observers feared a global recession. After the British government announced on Friday the 23rd the biggest tax cut since the early 1970s, the pound fell to a historic low while the single currency was at its lowest levels since 2002. London hopes to revive growth, but investors are worried about the impact of the measure on inflation and the long-term sustainability of British finances.

On Monday the 26th, oil prices fell amid concerns about the global economic outlook. The November contract on light sweet crude (WTI) traded on Nymex fell 47 cents to $78.27 per barrel while the North Sea Brent contract of the same maturity lost 55 cents to $85.60 per barrel.