2024-01-02 13:47:56

(Photo: Getty Images)

MARKET REVIEWS. Bad economic data in China as well as the rise in interest rates weigh on the markets on Tuesday for the first session of the year following their sharp rise in 2023.

Stock market indices at 7:45 a.m.

Futures contracts Dow Jones fell by -218.00 points (-0.57%) to 37,794.00 points. Futures contracts S&P 500 lost -35.50 points (-0.74%) to 4,784.50 points. Futures contracts Nasdaq fell -177.50 points (-1.04%) to 16,846.00 points.

In London, the FTSE 100 lost -32.99 points (-0.43%) to 7,700.25 points. In Paris, the CAC 40 dropped -53.07 points (-0.70%) to 7,490.11 points. In Frankfurt, the DAX fell by -75.61 points (-0.45%) to 16,676.03 points.

In Asia, the Nikkei from Tokyo fell -75.43 points (-0.22%) to 33,464.17 points. For his part, the Hang Seng Hong Kong closed down -258.84 points (-1.52%) at 16,788.55 points.

On the oil side, the price of a barrel of American WTI posted an increase of +US$1.36 (+1.90%) to US$73.01. The barrel of North Sea Brent rose +US$1.39 (+1.80%) to US$78.43.

The context

Markets rose sharply in 2023, particularly in the last two months of the year, with expectations of more accommodating policy from central banks.

“In many markets, the gains were almost entirely due to the last two months,” recall analysts at Deutsche Bank.

Investor sentiment changed on Tuesday following the release of S&P Global’s final Eurozone industrial PMI estimate, which came out a little better than expected.

Several times in recent weeks, the deterioration of economic conditions was welcomed by investors, who believed that this would put more pressure on central banks to start easing their monetary policy.

After hitting lows of several months, or even a year, in the euro zone last week, government interest rates rebounded significantly during the last two weeks of 2023 and the momentum continued on Tuesday.

The French 10-year French government bond rate reached 2.61%, compared to 2.56% on Friday and 2.40% at last week’s lowest. The American 10-year yield touched 3.95%, compared to 3.88% on Friday.

In Asia, the Hong Kong Stock Exchange lost 1.52% and Shanghai 0.43%.

Investors were particularly put off by the weakness of official data for Chinese industry in December, which was published on Saturday in a sharper contraction than expected. Investors have been hoping for months for large-scale measures to counter weak consumption and the lack of confidence with the real estate crisis, but they have been disappointed so far.

ASML excluded from China

State-of-the-art chipmaking machines from the Dutch semiconductor giant ASML were banned from export to China, the company reported, amid American pressure in this strategic sector.

ASML said in a statement on Monday that the Dutch government had recently revoked a license to ship some of its machines, “which would impact a small number of customers in China” of ASML, a key player in construction. world of microprocessors. The stock fell 1.45%.

Spirits and luxury in trouble

Companies linked to China were clearly declining in Europe. This is the case for the luxury sector: LVMH fell by 1.95, Hermes of 1.72% and in cosmetics L’Oreal yielded 2.21%.

Spirits manufacturers also lost a lot of ground, notably following analyst downgrades. Rémy Cointreau dropped 4.04%, Pernod Ricard 3,07%, Campari 2,10%, Diageo 1,49%.

Bitcoin at its highest since April 2022

The bitcoin soared on Tuesday, surpassing the US$45,000 mark, driven by hopes of imminent approval in the United States of a new consumer financial product.

The bitcoin advanced 4.41% to US$45,550.

Oil prices rose on Tuesday, driven by increased geopolitical risk and fears of potential supply problems following an Iranian ship entered the Red Sea, the scene of attacks on boats.

The price of a barrel of North Sea Brentfor delivery in March, took 2.27%, to US$78.79.

Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in February, gained 2.33%, to US$73.32.

The euro fell 0.77% to US$1.0959.

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