Morning Newsletter

Equity markets remain on the rise ahead of the Fed meeting. On Monday 14 June 2021, the Eurostoxx 50 posted 4,126.70 points, up by 0.75%, while the CAC 40 forecasts 6,600.66 points with an increase of 0.83%. The DAX 30 also increased by 0.78% to 15,693.27 points, the FTSE 100 to 7,134.06 points (+0.65%), the SMI to 11,841.30 points (+0.26%), the AEX to 728.48 points (+0.42%), the BEL 20 to 4,190.07 points (+0.52%), the IBEX 35 to 9,205.00 points (+0.78%), the DJIA at 34,479.60 points (+0.04%), the Nasdaq at 14,069.42 points (+0.35%), the S&P 500 at 4,247.44 points (+0.19%), and the Nikkei 225 at 29,121.72 points (+0.60%).

On the exchange rate side, the change compared to the close in New York indicates a fall of -0.09% for EUR/USD to 1.2100, EUR/JPY shows 132.79 with a fall of 0.02% and USD/JPY expects 109.76 with a rise of 0.07%.

On Monday, the Bank of France published its latest economic survey, accompanied by its forecasts for the French economy. Meanwhile, Safran and General Electric, the French group's joint venture partner in aircraft engines, are organizing a press conference on Monday on their vision for sustainable aviation

European equity markets are expected to continue rising on Monday, allowing the Stoxx Europe 600 index to set new records. At the start of the week, investors are focused on the next Federal Reserve (Fed) monetary policy meeting, scheduled for Tuesday and Wednesday. At 7:40am, the CAC 40 futures contract gained 16 points, or 0.2%, according to data from broker IG Markets. The contract on the DAX 30 took 20 points, or 0.1%, and the one on the FTSE 100 won 16 points, or 0.2%

Over the weekend, G7 leaders called on China to respect human rights without categorically condemning Beijing, and the President of the United States, Joe Biden, sought to create momentum for an international coalition to counter Chinese influence in the world. The 25-page joint statement issued Sunday by the leaders of the G7 countries, which addresses issues ranging from fighting the pandemic to the global economy, taxation, trade and girls' education, calls on China to respect human rights and fundamental freedoms, particularly in Xinjiang and Hong Kong. The same section of the statement indicates that the G7 will continue consultations on how to challenge China's behavior in the global economy. After the G7, Joe Biden continues his European tour on Monday with a North Atlantic Treaty Organization (NATO) summit in Brussels. Investors will also follow industrial production figures in April in the euro zone

In Asia, trade was relatively quiet on Monday, with markets closed in China and Hong Kong. In Tokyo, the Nikkei index gained 0.6%

U.S. Treasury bond yields rose Monday morning, as investor attention remains focused on inflation in the United States. At 7:40 a.m., the yield on the ten-year Treasury note, the market benchmark, stood at 1.463%, compared to 1.453% on Friday evening. Bank of America is concerned that the recent acceleration in inflation, which is considered temporary, may last long enough to have long-term effects.

On the foreign exchange market, the dollar gained ground on Monday against other major currencies, including the euro, but in trade volumes limited by the closure of financial markets in China and Hong Kong. According to DailyFX.com, investors are expected to focus this week on retail sales in the United States and on the Fed Monetary Policy Committee (FOMC) meeting

Michael Feroli, an economist at JPMorgan, indicates in a note to clients that the Fed may raise rates sooner than expected, due to lower risks associated with the Covid-19 pandemic and higher inflation expectations. Michael Feroli also anticipates “summary” discussions this week on a gradual reduction in asset purchases

Oil futures prices continued to rise on Monday morning, after gaining ground for the third consecutive week last week and reaching their highest level in two years. The market “cannot ignore the clearly bullish signal” of the International Energy Agency report, which on Friday called on the Organization of Petroleum Exporting Countries (OPEC) and its allies to increase production in order to “meet the resumption of oil demand in 2022,” said Louise Dickson, oil market analyst at Rystad Energy. At 7:30 a.m., the August North Sea Brent contract was 37 cents, at $73.06 a barrel, and the July contract on Nymex-traded soft light crude (WTI) earned 33 cents, at $71.24