In a tense geopolitical context, European equity markets are expected to be close to balance. The Eurostoxx 50 opens at 4,197.94 points (-1.23%), the CAC 40 at 7,129.73 points (-0.82%), the DAX 40 at 15,307.98 points (-1.39%), the FTSE 100 at 7,882.45 points (-0.36%), the SMI at 11,130.46 points (-0.78%), the AEX at 752.22 points (-0.36%), the SMI at 11,130.46 points (-0.78%), the AEX at 752.22 points (-0.36%), the SMI at 11,130.46 points (-0.78%), and the AEX at 752.22 points (-0.36%) 64%), the BEL 20 at 3,887.49 points (-0.88%), the IBEX 35 at 9,117.40 points (-1.36%), the DJIA at 33,869.27 points (+0.50%), the Nasdaq at 11,718.12 points (-0.61%), the S&P 500 at 4,090.40 points (+0.22%) and the Nikkei 225 at 27,427.32 points (-0.88%).

In terms of exchange rates, the change from the close mentions that in New York, EUR/USD is at 1.0668 (-0.10%), EUR/JPY at 140.96 (+0.49%), and USD/JPY at 132.14 (+0.56%).

At the opening of Monday, European equity markets are expected to change little. Investors, for their part, are assessing the prospects for interest rate developments before the publication of the consumer price index in the United States and monitoring tensions between Washington and Beijing.

The CAC 40 futures contract gained 1.6 points, or 0.02% at 7:35am according to IG broker data. The FTSE 100 contract gained 12 points, or 0.2%, and the DAX 40 contract fell by 3 points, or 0.02%.

An American fighter jet shot down a new flying object near the Canadian border on Sunday. It is the third object of this type shot down by the United States since radar surveillance was improved in the wake of the detection of a Chinese “spy balloon” about ten days ago. The United States blacklisted six Chinese companies on Friday that they believe were involved in Beijing's balloon surveillance program.

Major Asian indices moved in a mixed order on Monday. The Hang Seng on the Hong Kong Stock Exchange lost 0.5% at the end of the session, while the Nikkei index ended down 0.9% in Tokyo. In contrast, the Shanghai Composite Index gained 0.7%.

On Friday, Wall Street finished in a mixed order. The expanded S&P 500 index rose 0.2%, the Dow Jones Index (DJIA) closed up 0.5%. In contrast, the Nasdaq, rich in technology stocks, lost 0.6%.

Last week, US Treasury bond yields registered their biggest weekly increase in more than a month. This increase took place after the release of data showing an improvement in household morale in the United States and the comments of the President of the Federal Reserve (Fed) in Philadelphia, Patrick Harker. For his part, he believes that the chances of a soft landing for the American economy were increasing.

This morning, the euro fell against the dollar. Ahead of the publication of inflation figures on Tuesday, investor mood deteriorated slightly in the face of increased expectations of interest rate hikes in the United States. MUFG Bank believes that the consumer price index could support the dollar over the coming sessions, especially if the numbers surprise upwards. For its part, CapeCon believes that the inflation data reinforces the evidence of disinflationary pressures in the United States. He doubts that the greenback will be supported by expectations of rate hikes.

Furthermore, according to CapeCon, a reduction in risk appetite, as investors integrate a possible recession across the Atlantic and in other advanced economies, would be a catalyst for the greenback and should lead to an approach quotation of the dollar in the coming months.

Oil prices are falling this morning. They are probably undergoing a technical correction after gaining more than 8% in the past week. According to ING, it is also possible that the low prices reflect the fact that the market realizes that the latest projects to reduce Russian oil production are already largely integrated into prices. Similarly, according to ING, Russia is struggling to find players for its oil, especially since the European Union embargo on Russian refined products came into effect at the beginning of the month.

For its part, Goldman Sachs believes that the expected increase of 1.1 million barrels per day in Chinese demand this year “should bring oil markets back into deficit in June, reveal structural underinvestments, cause a rise prices and lead the Organization of Petroleum Exporting Countries (OPEC) to reverse the production cuts decided in November 2022” in the second half of 2023.

The March contract for light sweet crude (WTI) listed on Nymex sold 89 cents at $78.82 per barrel and the April North Sea Brent contract lost 86 cents at $85.52 per barrel.