2024-01-04 20:42:39
(Photo: 123RF)
MARKET REVIEWS. World markets stabilize on Thursday and take a break while awaiting the publication on Friday of inflation in the euro zone and the monthly report on American employment, which will allow them to better anticipate the trajectory of interest rates.
Stock market indices at 8:00 a.m.
After sharp declines on Wednesday, European stock markets opened slightly higher. Paris took 0.24%, London 0,25%, Frankfurt 0,12% et Milan 0,41%.
In Asia, Hong Kong finished stable and Shanghai lost 0.43%. The Stock Exchange Tokyo fell 0.53% during its first session of 2024, investor morale being affected by the deadly New Year earthquake in Japan and the decline in Wall Street indices on Wednesday.
The context
On Thursday, the three indexes across the Atlantic should open around equilibrium, according to their futures contracts.
Investors’ minds are focused on the publication of December inflation figures for the euro zone. In France and Germany, price increases started to rise again, to 3.7% year-on-year in December on both sides of the Rhine.
The full figures for the euro zone will fuel investors’ expectations regarding the next steps in European monetary policy, as will the December monthly report on US employment which will help gauge the possibility of a reduction in the Reserve’s key rates. US federal government (Fed) in the coming months.
On Wednesday, the publication of the minutes of the last December meeting of the American central bank revealed that the majority of the members of the Fed had considered it “appropriate” to keep its rates at a high level as long as inflation was not returned to a level sufficiently close to the Federal Reserve’s objective of 2% per year.
These minutes of the Monetary Policy Committee’s debates “provided no sign of imminent easing from the Fed, with little evidence of discussions on the rate cuts to which [le président de la Fed] Jerome Powell had alluded to this during the press conference,” commented Deutsche Bank analysts.
Stable at the start of the session, sovereign bond interest rates are rising again, both in Europe and in the United States. The yield on the ten-year United States bond, the benchmark maturity, stood at 3.95% against 3.92% on Wednesday, and the German equivalent rose to 2.10% against 2.02%. the day before.
No gifts under the JD Sports Fashion tree
The British sports clothing and accessories group JD Sports Fashion unraveled on the London Stock Exchange on Thursday, after having lowered its annual result forecast, in particular due to “more cautious consumer” spending.
The stock plunged 23.16%. The group now expects a profit before tax and adjusted items of between 915 and 935 million pounds compared to 1.04 billion previously for the annual financial year which ends on February 3.
On the other hand, the British clothing giant Next announced that it had achieved significantly better sales than expected for the end-of-year holiday period, raising its profit forecast for the year, and climbed 4.18% in London.
In the same sector, Adidas lost 4.34% and Puma 3.99% in Frankfurt.
Oil, euro and bitcoin on the rise
After climbing more than 3% on Wednesday, oil prices continued to rise on Thursday with the closure of a major oil field in Libya due to protests, tightening supplies from the country, amid fears of an escalation of the conflict in the Middle East.
The price of a barrel North Sea Brentfor delivery in March, gained 0.83%, to $78.90.
Its American equivalent, the barrel of West Texas Intermediate (WTI), for delivery in February, rose 1.13% to $73.52.
L’euro increased by 0.28% compared to dollar at 1.0953 dollars for one euro.
The yen remained weak against the dollar, losing 0.63% to 144.20 yen per dollar.
The bitcoin gained 1.06% to 43,392 dollars, after experiencing strong variations during the last sessions.
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