While waiting for the publication of economic indicators in the United States, European equity markets are expected to move in a contrasting manner on Monday at the opening.

The Minister of the Economy, Eric Lombard said in an interview that he will invite all the parties represented in Parliament to Bercy to “dialogue” about the 2025 budget. For the latter, any tax increases in the finance bill “will have to be very limited” and the text will provide for a public deficit “a little above 5%” of the gross domestic product. According to data from the broker IG, the CAC 40 futures contract gave up 0.1%

On the eve of the last session of the year, European equity markets are expected to open hesitantly on Monday. The markets continue to seek guidance, in low trade volumes due to the end of the year holidays. According to data from broker IG, around 7:40am, the DAX 40 futures contract gained 4.8 points and the FTSE 100 futures contract lost 0.2%. The New York Stock Exchange ended sharply lower on Friday, as rising bond rates weighed on growth stocks. The Dow Jones index lost 0.8% to 42,992.21 points, and the expanded S&P 500 index fell 1.1% to 5,970.84 points. The Nasdaq Composite, rich in technological stocks, fell by 1.5% to 19,722.03

The indexes have shown mixed trends since the beginning of December, but all increased over the week. The Dow Jones was in the red in December but rose by 0.4% last week. The S&P 500 also pocketed a weekly gain of 0.7% and the Nasdaq gained 0.8%. The United States would reach its debt limit in mid-January, which means resorting to “extraordinary measures” to prevent the federal state from defaulting on its payment obligations, says the American Secretary of the Treasury, Janet Yellen. Congress would then have several months to pass legislation to raise the debt ceiling before the extraordinary measures expire

A debt ceiling agreement reached in 2023 suspended the debt ceiling until January 1, 2025, and a new ceiling of several trillion dollars will come into force on January 2. Janet Yellen believes that “the Treasury is currently planning to reach the new limit between January 14 and 23, when it will have to start taking extraordinary measures.”
In Asia, the Nikkei 225 index lost 1% on Monday. The Hang Seng lost 0.1% at the end of the session on the Hong Kong Stock Exchange, while the Shanghai Composite gained 0.1%.


This morning, US Treasury yields fell slightly. As concerns about continued inflation and uncertainties surrounding Donald Trump's policy agenda continue to plague the market, U.S. Treasury bond yields rose on Friday. Raffi Boyadjian, market analyst at XM believes that “expectations of very little room for manoeuvre for the Federal Reserve in 2025, given the good health of the economy, persistent inflation and the inflationary measures that the next American administration will no doubt take, thwart the hope of a fall in borrowing costs, which are currently at their highest levels in decades.” ;. Around 7:20 a.m., the 10-year US Treasury bond yield fell 1.6 basis points to 4.614%. The stock price at two years lost 1.2 basis points to 4.322%.

Due to the holiday season, the dollar was stable on Monday morning, with a low trading volume. According to Brad Bechtel, at Jefferies, the evolution of currencies, especially the euro and the pound sterling, indicates that investors tend to sell the greenback at the end of the year. The single currency and the pound could therefore gain further ground in the run-up to 2025, but the fluctuations remain fairly moderate. At around 7:30am, the euro was unchanged at 1.0432 dollars, while the greenback gained 0.1%

Oil prices changed little this morning. Tom Essaye of Sevens Report Research says that Israeli strikes against Houthi rebels in Yemen have triggered a series of purchase orders underpinned by fears of instability. For TD Bank, investors especially fear a disruption in crude deliveries through the Red Sea. The bank believes that “it is a market that is oriented according to geopolitical events

Around 7:20 a.m., the March contract for North Sea Brent quoted in London gained 1 cent, at 73.80 dollars per barrel. The February contract for soft light crude (WTI) listed on Nymex rose 5 cents to $70.65