2023-07-14 14:09:07
(Photo: Getty Images)
MARKET REVIEWS. European stocks are moving in mixed order on Friday, after a week of gains and signs of slowing inflation in the United States, the market hoping that the American central bank will not go beyond a final increase in its policy rate.
Stock indices
The futures contracts Dow Jones increased by +153.00 points (+0.44%) to 34,743.00 points. The futures contracts S&P 500 advanced by +5.25 points (+0.12%) to 4,548.75 points. The futures contracts Nasdaq fell by -2.75 points (-0.02%) to 15,708.75 points.
In London, the FTSE 100 collected +28.24 points (+0.38%) to 7,468.45 points. In Paris, the CAC 40 increased by +27.46 points (+0.37%) to 7,397.26 points. In Frankfurt, the DAX yielded -5.92 points (-0.04%) to 16,135.11 points.
In Asia, the Nikkei of Tokyo closed down -28.07 points (-0.09%) at 32,391.26 points. For his part, the Hang Seng Hong Kong rose by +63.16 points (+0.33%) to 19,413.78 points.
On the oil side, the price per barrel of American WTI was down -0.06$ (-0.08%) to 76.83$. The barrel of North Sea Brent fell -0.05$ (-0.06%) to 81.31$.
The context
Global equities, measured by the MCSI World index, are experiencing their best week since the end of March.
Investors are delighted with the slowdown in inflation as well as the drop in producer prices in June in the United States, according to indicators published on Wednesday and Thursday.
These data reassure the markets, which are closely following the monetary policy decisions of the American central bank which, since March 2022, has been trying to bring inflation back to around 2% through rate hikes.
While the likelihood of another 25 basis point rate hike from the U.S. central bank (Fed) at the next July meeting “hasn’t changed much, the odds of another hike occurring beyond are now less certain,” continues Ipek Ozkardeskaya.
However, a senior Fed official, Christopher Waller, said Thursday that he was in favor of two further interest rate hikes, one in July and the other before the end of the year.
Nokia and Ericsson pick up
The Swedish telecom equipment giant Ericsson announced losses for its second quarter on Friday, while its Finnish competitor Nokia has revised its 2023 forecasts downwards due to a slowdown in their main market, the construction of 5G networks.
On the Helsinki Stock Exchange, the Nokia title fell by 7.81%. On the Stockholm Stock Exchange, the Ericsson title lost 8.33%.
Oil down
Oil prices hesitated on Friday, the two global benchmarks catching their breath after their rise of the week, between the return of investors’ appetite for risk and questions about demand.
A barrel of Brent from the North Sea for September delivery lost some 0.13% to US$81.25. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in August, fell just 0.11% to 76.80 dollars.
The two world crude benchmarks, however, were moving close to their highest levels in two and a half months.
The euro remains strong
The euro still gained some ground against the dollar on Friday after several signs of slowing inflation in the United States, while in the euro zone, the European Central Bank (ECB) says it wants to continue its monetary tightening.
The euro was stable (-0.07%) at US$1.1218, after rising to US$1.1245, a high since February 2022. Over the week, the single currency gained nearly 2.5% , taking advantage of the slowdown in inflation in the United States.
Bitcoin at a high level
On Friday, bitcoin dropped 0.88% to US$31,110 after hitting its highest level in thirteen months the day before.
On Thursday, the publication of a judgment contrary to the American market regulator, the SEC, in which some see a favorable precedent for cryptocurrencies, pushed bitcoin as high as $31,818 on Thursday, a first since the beginning of June 2022.
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