Still concerned about the pandemic, European markets are expected to decline 

Eurostoxx 50 3,527.79 points +0.48% 
CAC 40 5,598.18 points +0.56% 
DAX 30 13,335.68 points +0.37% 
FTSE 100 6,367.58 points +0.07% 
SMI 10,501.18 points +0.03% 
AEX 611.67 points +0.70% 
BEL 20 3,719.36 points +0.76% 
IBEX 35 8,190.70 points +1.06% 
 
DJIA 29,910.37 points +0.13% 
Nasdaq 12,205.85 points +0.92% 
S&P 500 3,638.35 points +0.24% 
 
Nikkei 225 26,433.62 points -0.79% 
 
Exchange rate at 06:50 
Change from closing in New York 
 
EUR/USD 1.1973 +0.08% 
EUR/JPY 124.35 -0.13% 
USD/JPY 103.87 -0.21% 
 

TO FOLLOW IN FRANCE

Investors will be attentive on Monday to the words of political leaders on the health and economic situation, after the reopening on Saturday of many shops following the easing of the confinement in France.

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European equity markets are expected to open lower on Monday, hurt by lingering concerns about the Covid-19 pandemic, despite Wall Street's record highs last week and a better-than-expected manufacturing activity indicator in China.

At 7:40 a.m., the CAC 40 futures contract lost 49 points, or 0.9%, according to data from broker IG Markets. The DAX 30 contract was down 121 points, or 0.9%, and the FTSE 100 contract was down 47 points, or 0.7%.

Analysts and investors are warning that stocks are trading at high levels as the coronavirus pandemic worsens in the United States.

"There are still many cases and restrictions in the United States: a large part of the activity will still stall," says Samy Chaar, chief economist of Lombard Odier. "This situation could affect the next report on payroll employment" in the United States, which will be published on December 4, he adds.

Dr. Anthony Fauci, the Trump administration's top infectious disease expert, warned Sunday that the United States could see "an outbreak adding to the current surge" of new Covid-19 cases in the coming weeks, and believes restrictions on travel and large gatherings will be maintained during the Christmas period.

Meanwhile, U.S. President-elect Joe Biden plans to appoint a team of liberal and centrist economic advisers to serve alongside future Treasury Secretary Janet Yellen, people familiar with the matter said Sunday.

Joe Biden chose Neera Tanden, head of the Center for American Progress, a center-left think tank, to lead the Office of Management and Budget. Barack Obama's former vice president has chosen Cecilia Rouse, a labor economist at Princeton University, to serve as president of the Council of Economic Advisers (CEA), the sources said.

On Friday night, Wall Street closed in the green on Friday, propelling the S&P 500 and Nasdaq to new all-time highs. The Dow Jones index gained 0.1% to 29,910.37 points after a shortened session the day after the Thanksgiving holiday. The S&P 500 index hit a new high point, gaining 0.2% to 3,638.35 points. The Nasdaq Composite ended up 0.9% at 12,205.85 points.

Closed on Thursday, the New York Stock Exchange set records last week, with the Dow Jones rising above the 30,000-point mark for the first time in its history. The market benefited from well-oriented economic indicators and the hope of the arrival of vaccines that could make it possible to reopen the economy more widely. For the week as a whole, the DJIA and S&P 500 gained 2.2% and the Nasdaq gained 2.8%.

In Asia, equity markets are trading in the red on Monday. The flagship index of major Chinese stocks, the Shanghai Composite, lost 0.2% at the end of the session, despite encouraging economic indicators in China. The Hang Seng of the Hong Kong Stock Exchange gave up 1.5%. The Nikkei index of the Tokyo Stock Exchange closed down 0.8%.

Manufacturing activity in China reached its highest level in three years in November, a sign that the recovery of the world's second-largest economy continues from the coronavirus crisis.

China's official manufacturing PMI rose to 52.1 in November from 51.4 in October, according to data released Monday by the National Bureau of Statistics. Economists polled by the Wall Street Journal were forecasting a more moderate rise to 51.5.

Investors will be watching Germany's November consumer price index, the Eurogroup meeting and the Organization of the Petroleum Exporting Countries (OPEC) meeting on  Monday.

Obligations

The yield on the ten-year U.S. Treasury bond fell slightly on Monday from Friday's level of 0.841%.

The U.S. bond market rose on Friday, due to new business restrictions for U.S. businesses and consumers in the face of Covid-19. In Europe, debt markets also gained ground and the yield on the German 10-year Bund ended at -0.59%, its lowest level in three weeks.

Bonds were also able to benefit on Friday from investors' purchase of long-term bonds, in order to preserve the maturity of their portfolio before the end of the month. In addition, investors are considering the possibility of the Fed easing policy in December. Analysts say a weakening of economic indicators could force the central bank to shift its bond purchases to long-maturing securities.

FOREIGN EXCHANGE

The euro is rising Monday morning against the dollar, but is still struggling to get out of its recent fluctuation range as investors anticipate further support measures from the European Central Bank (ECB), says Unicredit.

"The outcome of the ECB meeting on 10 December prevents a definitive crossing of this year's highs, at 1.2011, before the end of 2020, even taking into account the possibility that the [Federal Reserve] will also opt for an increase in its asset purchases during its review. December 16 meeting," says Roberto Mialich, currency strategist at Unicredit. The "impasse" in which the euro-dollar pair finds itself should continue in the coming days, according to him.

Oil

Oil prices  fell on Monday morning. Investors are awaiting the meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, scheduled for Monday and Tuesday, and fear that the recent rise in prices will annihilate any sense of urgency at this meeting.

"Given the signs of disagreement within the group, it is possible that the OPEC+ meeting will not live up to expectations," warns broker Axi.

At 7:30 a.m., the February contract for North Sea Brent lost $1.14 to $47.11 a barrel, while the January contract for light sweet crude (WTI) listed on the Nymex dropped $1.03 to $44.50 a barrel.