2023-05-08 15:50:29
(Photo: The Canadian Press)
MARKET REVIEWS. Global markets appeared encouraged Monday morning after Wall Street’s strong performance following Apple’s announcement of better-than-expected earnings.
Stock market indices at 7:45 a.m.
The futures contracts Dow Jones posted an increase of 79.00 points (+0.23%) to 33,818.00 points.
The futures contracts S&P 500 posted an increase of 8.25 points (+0.20%) to 4,158.50 points.
The futures contracts Nasdaq collected 1.25 points (+0.01%) to 13,319.00 points.
In London, the FTSE 100 collected 75.74 points (+0.98%) at 7,778.38 points.
In Paris, the CAC 40 rose by 22.36 points (+0.30%) to 7,455.29 points.
In Frankfurt, the DAX rose by 30.39 points (+0.19%) to 15,991.41 points.
In Asia, the Nikkei Tokyo dropped 208.07 points (-0.71%) to 28,949.88 points.
For his part, the Hang Seng Hong Kong gained 247.72 points (+1.24%) to 20,297.03 points.
On the oil side, the price per barrel of American WTI rose US$1.97 (+2.76%) to US$73.31.
The barrel of North Sea Brent rose US$1.79 (+2.38%) to US$77.09.
The context
Caution is also announced before the opening of the American markets, where the futures contracts on the main indices show a fall of 0.08% for the Nasdaq and an increase of 0.20% on the Dow Jones.
“Investors continue to welcome the reassuring US jobs report released on Friday, which highlights the resilience of the US labor market in the face of tightening money supply and strong inflation concerns,” said Pierre Veyret. , analyst at ActivTrades.
“However, the volatility may not be over for equities as the main concerns, related to further monetary tightening by the ECB, the issue of the US debt ceiling and the banking crisis, remain,” he continued.
Last week, the US Federal Reserve (Fed) and the European Central Bank (ECB) each raised their key interest rates by 0.25 percentage points in their months-long fight against inflation.
The ECB, which began its monetary tightening cycle in July 2022, four months after the Fed, left the door open for further rate hikes.
The Fed, for its part, abandoned any indication of further increases expected to rely on economic data for the future.
Those published on Friday showed a job market that remained dynamic in April in the United States, which illustrates the resilience of the American economy.
But wage growth does not bode well for bringing inflation down, which could prompt the Fed to keep interest rates high as investors yearn for a potential end to monetary tightening due to of the risk of recession that it poses.
This had a direct effect on short-term bond rates, which went up at the end of last week. The yield on the two-year US bond continued to rise on Monday to 3.94% around 10:45 GMT against 3.91% on Friday. Its German counterpart stood at 2.61% against 2.57% on Friday.
Investors are now waiting for the US consumer price index for April, which will be released on Wednesday, and US producer prices on Thursday, to get an idea of the evolution of inflation and to be able to better anticipate the Fed’s next monetary policy move.
Moreover, the debt ceiling debate in the United States poses a downside risk.
A default by the United States on its debt would lead to “financial and economic chaos”, Treasury Secretary Janet Yellen warned on Sunday, as the Republican opposition still refuses to raise the debt ceiling unconditionally.
On the side of currencies and oil
The euro appreciated by 0.25% against the dollar, at the rate of one euro for 1.104 7 dollar and strengthened by 0.53% against the Japanese currency, trading at 149.15 yen towards 10 h 45 GMT.
Oil prices continued to climb the slope in the wake of their rebound at the end of last week, benefiting the stock market energy sector whose TotalEnergies (TTE, +0,64%), Eni (ENI, +0.77%), Repsol (REP,+1,38%).
The barrel of American WTI gained 2.24% to 72.95 dollars and the barrel of Brent from the North Sea advanced 2.07% to 76.86 dollars.
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