“Global Markets React to American Debt Debate and Economic Indicators Worldwide”

2023-05-23 16:42:08

(Photo: The Canadian Press)

MARKET REVIEWS. Global markets are at half mast on Tuesday, in a session marked by activity indicators around the world and following the debate on the raising of the ceiling of the American debt.

Stock indices at 8:00 a.m.

London and Frankfurt lost less than 0.1% at the start of the session in Europe. Paris slipped by 0.6%.

In New York, before the opening of the markets, the Dow Jones average of industrial values ​​and the broader S&P 500 index yielded 0.1%.

In Asia, the Nikkei 225 fell 0.4% in Tokyo. The Shanghai stock market plunged 1.5% and the Hang Seng 1.3% in Hong Kong. Sydney fell less than 0.1% and Seoul gained 0.4%.

On the New York Commodities Exchange, the price of oil dropped 15 cents US to US$71.90 a barrel.

The context

Economic growth in the private sector in the euro zone slowed in May, reaching its lowest level in three months, weighed down by the drop in industrial production, according to the Flash PMI index published on Tuesday by S&P Global.

“The PMI data suggests an expansion of eurozone GDP in the second quarter, driven by the good performance of the services sector,” commented Cyrus de la Rubia, economist at Hamburg Commercial Bank, a partner institution of S&P to develop the report. PMI indicator.

Those for the United States are published shortly after the opening of Wall Street.

Investors will keep an eye on the soap opera of the moment, the negotiations on raising the US debt ceiling and the risk of default as early as June if no agreement is reached.

Joe Biden and opposition leader Kevin McCarthy wanted to believe on Monday in a way out of the crisis after a meeting between them, but their disagreements have not yet been overcome.

However, “the strength of equities despite the rise in bond market rates”, and the fact that gold does not benefit from its status as a safe haven in crises “indicate that investors are watching the debt ceiling saga American like an American movie, knowing that there will be a happy ending,” said Ipek Ozkardeskaya, an analyst at Swissquote Bank.

Vivendi picks up

Company action Vivendi fell 6.69% after sales of shares by a company linked to Vincent Bolloré, while investors expected the opposite to a capital increase.

This operation goes against market rumors concerning a possible takeover bid by Vincent Bolloré on Vivendi, of which he is the reference shareholder and owns 29% of the capital.

Luxury patina

Luxury companies, which have risen sharply on the stock market this year, are falling sharply in Europe. Hermes lost 4.04%, LVMH 3,05%, Dry 1,90%, Moncler 2,81% et Burberry 1,72%.

On the side of oil and currencies

Oil rises slightly: the barrel of Brent de Mer du Nord for July delivery gained 0.67% to US$76.50 and a barrel of West Texas Intermediate (WTI)for delivery the same month, of which it is the first day of use as a reference contract, progressed by 0.71% to 72.56 $US.

The euro lost some ground against the US dollar (-0.33%), at US$1.0777. Gold fell 0.72% to US$1,957.58 per ounce.

The book fell to its lowest level in a month against the dollar on Tuesday, while British services fared a little worse than expected in May. It was worth US$1.2380, down 0.46%.

The bitcoin rises 1.60% to US$27,330.

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