2023-09-29 14:00:25
(Photo: The Canadian Press)
MARKET REVIEWS. European stock markets continued their rebound on Friday, driven by the slowdown in inflation in the euro zone, with investors now awaiting inflation data in the United States before Wall Street opens.
Stock market indices at 8:30 a.m.
London, Frankfurt et Paris added between 0.7% and 0.8% at the start of the session in Europe.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 grew by just under 0.5%.
In Asia, the Nikkei 225 lost 0.1% in Tokyo. Sydney took 0.3% and the Sensex if added 0.9%. Shanghai, Seoul, Hong Kong et Taiwan were closed.
On the New York Commodity Exchange, the price of oil was up 23 US cents at US$91.94 a barrel.
The context
Equity markets amplified their gains after the publication of euro zone inflation in September, which fell to its lowest level in two years.
The rise in consumer prices fell to 4.3% year-on-year in the 20 countries sharing the single currency, after 5.2% in August, Eurostat announced on Friday. The figure is better than expected by analysts.
“This reassures us that the ECB has finished raising interest rates,” said Jack Allen-Reynolds, expert at Capital Economics. But, according to him, the Frankfurt institution “will not start reducing its rates before the end of 2024”.
In response, rates eased a little on the bond market after reaching multi-year highs the day before, worried by the position of central banks to maintain their high rates for a longer period than the market expected.
The interest rate on 10-year German government debt stood at 2.86%, compared to 2.93% the day before, and the French equivalent was at 3.42% compared to 3.49% on Thursday. .
All eyes are now on the United States, where the American PCE price index for the month of August is due to be published. This is the Federal Reserve’s (Fed) preferred measure of inflation.
The data will “probably reflect the rise in gasoline prices,” which have recently moved at particularly high levels, underlines Ipek Ozkardeskaya, analyst at Swissquote Bank.
Furthermore, the political situation in the United States is also attracting the attention of investors, while “there has not been much progress in the negotiations aimed at avoiding a shutdown” — paralysis of the federal state budget — continues the analyst.
This “shutdown” could begin on Sunday if the elected representatives of Congress cannot reach an agreement.
On Wall Street, futures contracts for the three main indexes gained between 0.34% and 0.45%.
Aston Martin also la and
British luxury car manufacturer Aston Martin soared nearly 13% on the London Stock Exchange after announcing an increase in the stake of its largest shareholder, the Yew Tree consortium, led by Canadian billionaire Lawrence Stroll .
Investors return to Future
Futurea British platform dedicated to specialized online media whose stock has lost around 35% since the start of the year, soared by more than 20% in London after announcing that its annual result would be “in line with expectations (…) despite macroeconomic volatility.
Sportswomen accelerate
Stocks in the sports sector benefited from the good results generated by Nike for the past quarter ending at the end of August.
In Frankfurt, Adidas gained 5.35% and Puma 5,54%. JD Sports rose by 4.95% in London.
Commerzbank wanted
Commerzbank jumped 11.39% in Frankfurt after its announcement Thursday evening of wanting to better involve its shareholders in its future profits, also expected to increase, whether thanks to better dividends or share buybacks.
On the side of oil and currencies
Oil prices rose on Friday after still approaching the symbolic bar of US$100 per barrel.
The barrel of North Sea Brent for delivery in November took 0.86%, to US$96.20.
As for the barrel of West Texas Intermediate (WTI) American of the same maturity, gained 1.00%, to US$92.63.
The American dollar fell against the euro and the pound, investors taking profits after the rise of the greenback in recent weeks.
The euro climbed 0.27% to US$1.0595. The greenback also fell against the pound, which gained 0.44% to US$1.2257.
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