European equity markets should start the year 2021 in scattered order 
 
 
 
 
 
 
Eurostoxx 50 3,552.64 points -0.53% (closing December 31) 
CAC 40 5,551.41 points -0.86% (closing December 31) 
DAX 30 13,718.78 points -0.31% (closed December 30) 
FTSE 100 6,460.52 points -1.45% (closing December 31) 
SMI 10,703.51 points +0.20% (closing December 30 
AEX 624.61 points -0.55% (closed December 31) 
BEL 20 3,621.28 points -1.14% (closing December 31) 
IBEX 35 8,073.70 points -0.99% (closing December 31) 
 
DJIA 30,606.48 points +0.65% (closing December 31) 
Nasdaq 12,888.28 points +0.14% (closing December 31) 
S&P 500 3,756.07 points +0.64% (closing December 31) 
 
Nikkei 225 27,258.38 points -0.68% 
   
 Exchange rate at 06:50 
Change from the close in New York 
 
EUR/USD 1.2249 +0.27% 
EUR/JPY 126.21 -0.12% 
USD/JPY 103.04 -0.20% 
 
   

TO FOLLOW IN FRANCE

For the first session of the year 2021, investors will be attentive on Monday to the final figures of the PMI index of the manufacturing sector in December. Preliminary data, released by IHS Markit on December 16, showed an index at 51.1 last month, down from 49.6 in November.

On the business side, the shareholders of PSA and Fiat Chrysler Automobiles are meeting in a general meeting to vote on the proposed merger of the two car manufacturers.

SHARES

European equity markets are expected to hesitate on Monday morning, for the first session of the new year, as the tightening of measures to fight the coronavirus pandemic across the world is offset by optimism over the deployment of vaccines and a possible recovery of the global economy.

At 7:40 a.m., the CAC 40 futures contract was down 2.4 points, or 0.04%, according to data from broker IG Markets. The contract on the DAX gained 13.5 points, or 0.1%, and that on the FTSE 100 rose by 27.8 points, or 0.4%.

The unprecedented measures adopted by governments and central banks to support their economies in the face of the pandemic have investors focused on the outlook for the year ahead, although a tightening of containment measures in many countries seems likely. In addition, fund managers hope that the widespread deployment of vaccines will quickly allow the return of normal social and business activity, which would help accelerate the pace of economic recovery.

Shares in the travel and homebuilding sectors, which fell sharply in 2020, will be watched closely on Monday, as will European producers of alcoholic beverages, after the Trump administration announced it would raise duties. tariffs imposed on French and German wines and spirits at 25% from January 12.

Investors are also awaiting the final figures from the PMI indices for the manufacturing sector of the euro zone and its member states.

In the United States, Wall Street ended the year at new highs, with investors showing confidence in the prospects for recovery after the announcement of a reduction in jobless claims in the United States. At the end of a particularly turbulent year on Wall Street, trading remained limited on Thursday, with many operators absent for the holiday season.

After opening in the red, the Dow Jones and the S&P 500 rallied to set new all-time highs at the close. The Dow Jones Index (DJIA) ended up 0.7%, at 30,606.48 points, and the broader S&P 500 index gained 0.6%, at 3,756.07 points. The Nasdaq Composite rose 0.1% to 12,888.28 points, a few points off its previous record.

Over the year as a whole, the DJIA gained almost 7%, the S&P 500 gained just under 16% and the Nasdaq gained 43%.

In these first days of 2021, the United States is facing an increase in coronavirus cases, new restrictive measures for businesses, household caution for their purchases linked to the end of the year holidays. and a slowdown in economic growth. Analysts said the December jobs report, due out on Friday, should indicate that the labor market ended 2020 on a weak note.

Economists polled by the Wall Street Journal expect the creation of 68,000 jobs in December, against 245,000 the previous month. This would be the lowest number of job creations since May.

In Asia, equity markets gained ground on Monday, with the exception of the Tokyo Stock Exchange where the Nikkei index lost 0.7%. Investors fear that the Japanese Prime Minister will declare a state of emergency in Tokyo.

In Hong Kong, the Hang Seng gained 0.7% at the end of the session. The Shanghai Composite for its part gained 1%, although the growth of manufacturing activity in China slowed in December due to weak demand for the country's exports.

The manufacturing PMI index came in at 53 in December, from 54.9 in November, Caixin said Monday. Above 50, the index signals an expansion of activity for the seventh consecutive month. Manufacturing activity in China reached its highest level in ten years in November.

OBLIGATIONS

Yields on U.S. Treasury bonds are up sharply on Monday, after little change in the final session of 2020. The yield on the ten-year Treasury note, the market benchmark, stood at 0.942% , down from 0.913% on Thursday.

Bond markets are awaiting the second round of senatorial elections in Georgia, which will determine which party will control the upper house of the United States Congress. A surprise victory for Democrats would allow the Biden administration to increase government spending and widen the budget deficit, which could increase selling pressure on long-term Treasury bonds. Some market participants, however, believe that the outcome of the Georgia election could create near-term volatility for risky assets such as equities and support investments in safe havens.

“The possibility of a Democratic Senate was initially seen as a bond-unfriendly one, but some now believe it could hurt risk assets and drive up Treasury bond prices,” comments Steve Feiss, chief product officer at fixed income at Etico Partners.

CHANGES

The dollar continued to slide on Monday against other major currencies, including the euro, as investors hoped for a recovery in the global economy in 2021.

The pound rose for its part against the euro and the dollar after the end of the post-Brexit transition period in the United Kingdom, investors still welcoming the agreement reached just before Christmas with the European Union. However, British Prime Minister Boris Johnson has warned that lockdown measures in place in England are "likely to be tightened" in order to tackle rising coronavirus cases in the country.