European equities rose on Monday, while U.S. technology stock futures fell, with bond yields close to one-year highs as the world’s largest economy was about to add a stimulus. of $ 1.9 trillion.
The U.S. Senate approved its version of the $ 1.9 trillion stimulus package over the weekend and sent it back to the U.S. House for approval before President Joe Biden could sign it in law. Increasing bond yields – with the 10-year Treasury TMUBMUSD10Y,
an increase of 64 basis points in 2021, until Friday, has led investors to change from assets perceived as valued valuations, such as companies in the technology sector, to disadvantaged sectors with less demanding valuations.
The Stoxx Europe 600 SXXP,
increased 0.6%, with companies that have had problems during the COVID-19 pandemic at the forefront. Cruise operator Carnival CCL,
oil services company TechnipFMC FTI,
tourist conglomerate TUI TUI,
and mall operator Klepierre LI,
he headed the leadership table.
HelloFresh HFG Ready Food Kit Manufacturer
and the Nel NEL hydrogen fuel company,
both rose above 100% in the last 52 weeks, fell sharply.
Futures on the Nasdaq-100 NQ00, very technological,
fell 1.6%.
Florent Pochon, strategist at French bank Natixis, said there are many reasons for markets to be nervous, but hopes the stock rage can be limited as long as the Federal Reserve remains delinquent.
“In terms of valuation, the ten years of the United States seem to be approaching fair value, given all the uncertainty that determines exactly what it is,” he said. “No matter how much the U.S. fiscal stimulus plan is, it is not expected to generate high structural inflation, but to deepen the country’s trade deficit.”
Actions to educational publisher Pearson PSON,
fell to 5% before spinning and rose 5%. The company’s results and prospects largely matched expectations as it established plans to sell its local publishing companies international courses and occupy fewer properties.