2023-04-28 15:16:02
(Photo: Getty Images)
MARKET REVIEWS. European stocks fell on Friday, confirming the week’s trend, as investors braced for the release of US inflation figures, the end of a very busy week.
Stock market indices at 7:45 a.m.
Paris slipped 0.4% and London 0.2% at the start of the session in Europe. Frankfurt added 0.1%.
In New York, before the markets open, the average Dow Jones of industrial stocks and the broader index S&P 500 were down 0.3%.
In Asia, the Nikkei 225 jumped 1.4% in Tokyo. The scholarship of Shanghai increased by 1.1% and the Hang Seng 0.5% in Hong Kong. Sydney et Seoul added 0.2%.
On the New York Commodity Exchange, the price of oil took 49 US cents to US$75.25 a barrel.
The context
In the aftermath of a strong recovery, Wall Street is heading for a bearish opening according to the futures contracts of the main indices, around 0.4%.
At the end of a week marked by corporate publications, today’s session this time gives the main role to economic indicators.
The GDPs of European countries have shown that economic activity avoids recession, but only slightly. Overall, eurozone growth is barely 0.1%.
Investors are now waiting for the PCE report, which notably gives the inflation indicator most followed by the American Central Bank.
It is holding its next meeting on May 2 and 3. Investors are certain that it will once again raise its key rate by 0.25 percentage points, but still hope that it will give indications for a more accommodating policy for the coming months.
“The latest data shows strong demand and persistent inflation. The Central Bank is expected to keep a stern tone amid risks of a resumption of inflation and waning fears “about the banking system after the March confidence crisis, Barclays analysts say.
In Asia, the trend was much better. Tokyo gained 1.4%, driven by the decisions of the Japanese Central Bank. It will launch an in-depth review of its currently ultra-loose monetary policy, pointing to further major changes under its new governor Kazuo Ueda, but probably not anytime soon as the analysis will take between 12 and 18 months.
On the government bond market, rates are falling, a sign of investors’ risk aversion.
No extra for Amazon
Amazon (AMZN) has signed, like its major competitors, a first quarter better than expected, which confirms the recovery of the group’s trajectory.
After initially welcoming the release in early post-close electronic trading, Wall Street finally corrected the issue. In pre-market electronic trading, the title yielded 1.27% after gaining more than 10%.
Deposits, a black spot for banks
The British bank Natwest (NWG) announced higher earnings on the back of interest rates but the stock fell 4.85% on deposit disappointment amid the UK’s cost of living crisis.
The trend was affecting all European banks. Banco Sabadell (SAB) unscrewed by 7.36%, Bank BPM (BAMI) of 4.42%, Santander (SAN) of 3.84% and Commerzbank (CBK) of 4.06%.
Conversely, the first German bank Deutsche Bank (DBK) announced Friday the purchase of the British broker Numis for 410 million pounds (463 million euros) and progressed by 0.36%.
Yen at 9-year low against euro
The yen nosedived on Friday against the dollar and reached a nine-year low against the euro, penalized by the continuity of the Bank of Japan’s ultra-accommodating monetary policy.
Around 10:40 a.m. GMT, the Japanese currency fell 1.5% to 136.00 yen per dollar, a lowest in a month and a half.
In front of the eurowhich has been on the rise recently, it lost 1.09% to 149.38 yen after falling to 149.51 yen, a level not seen since December 2014.
Bitcoin fell 1.02% to $29,330.
The price of oil was trying to rebound after falling during the week below the level which had justified cuts in the production of important exporting countries in April.
The barrel of Brent of the North Sea took 0.79% to 78.99 dollars and that of the WTI American 0.36% to 75.03 dollars around 10:30 GMT.
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