Shares are expected to decline as the conflict in Ukraine continues to capture attention. The Eurostoxx 50 opens at 3,902.44 points (+0.44%), the CAC 40 at 6,620.24 points (+0.12%), the DAX 40 at 14,413.09 points (+0.17% ), the FTSE 100 at 7,404.73 points (+0.26%), the SMI at 12,184.99 points (+1.02%), the AEX at 716.36 points (+1.26%), the BEL 20 at 4,147.45 points (+0.89%), IBEX 35 at 8,417.60 points (+0.07%), DJIA at 34,754.93 points (+0.80%), Nasdaq at 13,893.84 points (+2.05%), the S&P 500 at 4,463.12 points (+1.17%) and the Nikkei 225 at 26,827.43 points (+0.65%).
Regarding exchange rates, the change from the close in New York indicates that EUR/USD at 1.1040 (-0.10%), EUR/JPY at 131.65 (-0 .01%), USD/JPY at 119.26 (+0.09%).
European equity markets are expected to open lower on Monday, weighed down by news about the war in Ukraine. At 7:25 a.m., the CAC 40 futures contract lost 33 points, or 0.5%, according to data from broker IG Markets. The contract on the DAX 40 yielded 48 points, or 0.3%, and that on the FTSE 100 fell by 14 points, or 0.2%. The Ukrainian government refused overnight from Sunday to Monday to capitulate in Mariupol, despite the ultimatum issued by Russia.
On Friday, Wall Street ended higher, posting robust gains for the week despite the impact of the war in Ukraine on commodity prices and the prospect of less accommodative monetary policy from the Federal Reserve ( fed) this year. The Dow Jones index gained 0.8% to 34,754.21 points. The broader S&P 500 index gained 1.2% to 4,463.09 points. The Nasdaq Composite rose more than 2% to 13,983.84 points. Wall Street had its best week since November 2020, with a weekly rise of 5.5% for the Dow Jones index and 8.2% for the Nasdaq. The S&P 500 rose 6.1%.
Yields on U.S. Treasury bonds posted a mixed performance on Friday, but posted their strongest two-week advance in years. Investors are reacting to the war in Ukraine and the monetary tightening cycle initiated by the Federal Reserve (Fed). Meanwhile, the yield spread between two- and ten-year securities narrowed to less than 19 basis points on Friday, one of its lowest levels since March 2020. Some analysts believe the Fed may not be able to to raise rates as much as it expects if the economic slowdown suggested by the yield curve materializes.
Geopolitical concerns bolster the dollar's appeal as a safe haven on Monday. MUFG Bank believes that investors' optimism regarding a limited contagion effect from the conflict in Ukraine and sanctions against Russia is not necessarily justified. The bank stresses that the current situation in Ukraine suggests that the peace talks are not really progressing. At 7:25 a.m., the euro lost 0.1% to 1.1039 dollars.
Oil contracts gained more than 3% on Monday morning, while talks between Ukraine and Russia showed no significant progress. As of 7:15 a.m., the May contract for Brent North Sea crude was up $3.55, or 3.3%, at $111.48 a barrel, while the April contract for light sweet crude (WTI) quoted at Nymex was up $3.57, or 3.4%, to $108.27 a barrel.