European equities rose on Monday, while US technology stock futures fell, with bond yields close to one-year highs, with the world’s largest economy on the verge of adding a $ 1.9 trillion stimulus.
The U.S. Senate adopted its $ 1.9 trillion stimulus package over the weekend, sending it back to the U.S. House for approval before President Joe Biden could sign the law. Increasing bond yields – with the 10-year Treasury TMUBMUSD10Y,
the increase by 64 basis points in 2021, until Friday – led investors to move from assets perceived as having broad valuations, such as companies in the technology sector, and in disadvantaged sectors with less demanding valuations.
Stoxx Europe 600 SXXP,
increased by 0.6%, the companies that fought during the COVID-19 pandemic in the lead. Cruise operator Carnival CCL,
oil services company TechnipFMC FTI,
TUI TUI tourist conglomerate,
and mall operator Klepierre LI,
at the head of the leadership.
Manufacturer of prepared food HelloFresh HFG,
and the hydrogen fuel company Nel NEL,
both have risen by more than 100% in the last 52 weeks, falling sharply.
Futures on Nasdaq-100 NQ00 technology,
decreased by 1.6%.
Florent Pochon, a strategist at French bank Natixis, said there are plenty of reasons for markets to be nervous, but expects any share of the stock to be limited as long as the Federal Reserve remains in evidence.
“In terms of valuation, the US for 10 years seems to be approaching fair value, given all the uncertainties that really determine what it is,” he said. “As massive as the US fiscal stimulus plan is, it is not expected to generate high structural inflation, but rather to deepen the country’s trade deficit.”
Actions at educational publisher Pearson PSON,
decreased by up to 5% before returning and increased by 5%. The company’s results and prospects were largely in line with expectations, as it set out plans to sell its international publishing companies of international courses and occupy fewer properties.