2023-04-24 14:45:30
(Photo: The Canadian Press)
MARKET REVIEWS. Global markets were down on Monday morning, awaiting the release of new data that could point to a slowing US economy.
Stock market indices at 7:30 a.m.
London, Frankfurt et Paris fell between 0.1% and 0.3% at the start of the session in Europe.
In New York, before the markets open, the average Dow Jones of industrial stocks fell by 0.3% and the broader index S&P 500 of 0.4%.
In Asia, the Nikkei 225 added 0.1% in Tokyo. Seoul et Shanghai slipped 0.8%, and the Hang Seng 0.6% in Hong Kong. Sydney lost less than 0.1%.
On the New York Commodity Exchange, the price of oil fell 13 US cents to US$77.74 a barrel.
The context
Wall Street ended close to equilibrium on Friday, slightly helped by the PMI activity indices for April, published by the agency S&P Global, which came out well above expectations, both in the manufacturing sector and in services.
“A remarkably resilient US labor market, strong data in China and the absence of further crises from regional banks helped to sustain stocks,” said Stephen Innes, analyst at SPI Asset Management.
At the start of the week, investors are waiting for the publication of the results of the American technology giants: Microsoft (MSFT) et Alphabet (GOOGL) are expected on Tuesday, When (WHEN) Wednesday and Amazon (AMZN) THURSDAY.
Their shares have jumped since the start of the year, from 19% for Microsoft to more than 75% for Meta, which has brought the New York market.
The mood is also cautious ahead of the next meeting of the monetary policy committee of the American central bank, on May 2 and 3, whose members no longer have the right to speak publicly before this date.
This obligation lightens the agenda of the week for investors.
“The US Federal Reserve is expected to raise rates by another 25 basis points in May,” said John Plassard, investment specialist at Mirabaud.
The agenda for macroeconomic indicators is also very light this week, with little data expected before Friday with the first figures for inflation and GDP growth in the first quarter for several countries in the euro zone.
The first estimate of US GDP growth in the first quarter will be released on Thursday, ahead of the PCE index on Friday, the Federal Reserve’s preferred inflation indicator.
Macroeconomic data are always scrutinized by investors through the prism of the impact on monetary policy.
They thus try to predict the number of future rate hikes by the American, British and European central banks as well as the time remaining before seeing them carry out rate cuts, notes Michael Hewson, an analyst at CMC Markets.
Credit Suisse loses assets
Credit Suisse (CSGN) recorded capital outflows of 61.2 billion Swiss francs in the first quarter, a trend which continues even after the announcement of the takeover of the bank by the first Swiss bank UBS (UBS).
On an adjusted basis, Credit Suisse suffered a pre-tax loss of 1.3 billion Swiss francs. Its action nevertheless progressed by 1.22% in Zurich.
“Credit Suisse’s situation has deteriorated further,” note analysts at Jefferies, a situation that will be up to UBS to manage. The share price of the latter gleaned 0.94% in Zurich.
Oil, currency and bond markets
Oil prices continue to fall on Monday. Around 7:30 a.m. GMT, a barrel of Brent North Sea crude for June delivery slid 1.05% to $80.80. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month dropped 1.25% to 76.90 dollars.
The foreign exchange market was sluggish. The euro was worth $1.097 (-0.07%).
Bitcoin dropped 0.20% to $27,450.
On the bond market, the interest rates of the sovereign debts of European and American states were very slightly down from their closing level on Friday.
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