Equities are expected to fall slightly ahead of the eurozone manufacturing PMI. The Eurostoxx 50 opens at 3,708.10 points (+1.53%), the CAC 40 at 6,448.50 points (+1.72%), the DAX 40 at 13,484.05 points (+1.52%), the FTSE 100 at 7,423.43 points (+1.06%), the SMI 11,145.91 points (+0.15%), the AEX at 729.44 points (+1.06%), the AEX at 729.44 points (+1.06%), the SMI 11,145.91 points (+0.15%) 0.98%), the BEL 20 at 3,796.84 points (+1.00%), the IBEX 35 at 8,156.20 points (+0.88%), the DJIA at 32,845.13 points (+0.97%), the Nasdaq at 12,390.69 points (+1.88%), the S&P 500 at 4,130.29 points (+1.42%) and the Nikkei 225 at 27,960.82 points (+0.57%).

As for exchange rates, the change compared to the close in New York indicates that EUR/USD at 1.0226 (-0.01%), EUR/JPY at 135.55 (-0.52%) and USD/JPY at 133.56 (-0.51%).
Investors are waiting for the final manufacturing PMI figures for July on Monday. Preliminary data, released by S&P Global on July 22, showed the index falling to 49.6 from 51.4 in June. The market will also react to new car registrations in July, which fell by 7.1% year on year in July. Stellantis saw a slightly more pronounced fall than the market, with a 9.9% fall in registrations in July. The Renault group recorded an increase of 10.8%, thanks in particular to an increase of 14.5% in its eponymous brand. In addition, the diversified conglomerate Bolloré announced strong increases in the first half of the year on Friday evening, supported in particular by the good performance of its transport and logistics activities.

European equity markets are expected to open slightly lower on Monday, as investors expect major signs of manufacturing activity in the eurozone and the United States. Around 7:30am, the CAC 40 futures contract was down 14 points, or 0.2%, according to data from the IG Markets broker. The DAX 40 contract fell 26 points, or 0.2%, and the FTSE 100 contract lost 16 points, or 0.2% as well.
In the eurozone, the market is awaiting confirmation of the preliminary figures for the manufacturing sector PMI for July. S&P Global's first estimate showed the index falling to 49.6, its lowest level in more than two years, from 52.1 in June. Below 50, the index reflects a contraction in activity. In the United States, the ISM and PMI indices for the manufacturing sector will be published in the afternoon. Economists polled by the Wall Street Journal expect growth to slow, with indexes expected to reach 52.1 and 52.2 in July, respectively, compared with 53 and 52.7 in June.
Growth in the Chinese manufacturing sector slowed in July compared with June, hampered by relatively subdued demand. The manufacturing PMI published by Caixin fell to 50.4 in July from 51.7 in June, according to data released by Caixin Media and S&P Global on Monday. Above 50, the index indicates an expansion of activity. The official manufacturing sector PMI, released over the weekend by the National Bureau of Statistics, reached 49 in July, signalling a contraction in activity compared with June. The official index focuses more on large state-owned companies than the Caixin index.
After the publication of this indicator, Asian stock exchanges present a mixed picture. The Shanghai Composite Index was close to balance at the end of trading, the Hang Seng on the Hong Kong Stock Exchange lost 0.3% and the Nikkei 225 in Tokyo increased 0.5%. On Friday night, Wall Street finished higher, supported by technology stocks after strong results from Apple and Amazon. The Dow Jones index rose 1%, the S&P 500 gained 1.4%, and the Nasdaq gained 1.9%. The S&P 500 recorded an increase of 4.5% over the whole week and of more than 8% in July, which had not happened since November 2020, the month when the President of the United States, Joe Biden, was elected. The Dow Jones and Nasdaq indexes rose by 6.7% and 12% respectively in July. Investors hope that the Fed will adopt a less restrictive policy in the future to protect the economy.

U.S. Treasury bond yields ended lower for the final session of July on Friday, in response to the release of inflation figures that could affect the pace of interest rate hikes by the Federal Reserve.

The euro changed little against the dollar on Monday morning, while traders expect less muscular tightening in the future of the US Federal Reserve's (Fed) monetary policy. Expectations of a rapid slowdown in the American economy point to less severe monetary tightening, according to SPI Asset Management. Markets have ruled out the most aggressive scenarios for Fed rate hikes and the recent pullback in Treasury bond yields has led to the unwinding of long positions on the dollar, adds SPI.

Oil contracts fell on Monday morning, due to uncertainty over the outcome of the OPEC+ meeting, which brings together the Organization of Petroleum Exporting Countries (OPEC) and ten allied countries led by Russia, this week. OPEC+ would consider keeping its oil production unchanged for September, despite a call from the United States to increase supply, but a modest increase in production could be considered, according to Phillip Securities Research. At 7:20 a.m., the October North Sea Brent contract lost $1.07 to $102.90 per barrel, while the September contract for soft crude (WTI) traded on Nymex fell by $1.37 to $97.25 per barrel.