2023-11-02 15:14:07
Global markets were up Thursday morning, after the United States Federal Reserve indicated the day before that it may no longer have to intervene to prevent the economy from spinning too quickly. (Photo: The Canadian Press)
MARKET REVIEWS. Global markets were up Thursday morning, after the United States Federal Reserve indicated the day before that it may no longer have to intervene to prevent the economy from spinning too quickly.
Stock market indices at 7:30 a.m.
London, Frankfurt et Paris added between 1% and 1.2% at the start of the session in Europe.
HAS New Yorkbefore the markets opened, the average Dow Jones industrial stocks rose by 0.3% and the broader index S&P 500 of 0.5%.
In Asia, the Nikkei 225 added 1.1% to Tokyo. The scholarship of Shanghai lost 0.5% and the Hang Seng took 0.8% to Hong Kong. Sydney advanced by 0.9% and Seoul a bondi of 1.8%.
On the New York Commodity Exchange, the price of oil rose US$1.32 to US$81.76 per barrel.
The context
Equity indices benefited from the biggest fall in American bond yields since March: the 10-year bond fell from 4.93% at Tuesday’s close to 4.70% around 7:05 a.m.
In Europe, the German rate, which is the benchmark, rose from 2.80% at the close on Tuesday to 2.69%.
The signs of slowing down in the American economy and the general feeling of the markets after the intervention of Jerome Powell make investors more optimistic about the absence of a new increase in key rates in the coming months.
The trend was accentuated after the meeting of the American Central Bank, which as expected left its key rates unchanged for the second time in a row.
“The fourth quarter will be decidedly different from the last three months and we are more confident that inflation will meet the Fed’s target. The only question that arises is that of the calendar,” writes Jack McIntyre, portfolio manager at Brandywine Global, in a note.
In the euro zone, the slowdown in economic activity is more pronounced than in the United States, particularly in industry, confirmed the PMI activity indicator for the euro zone for the month of October.
Today’s session will once again be marked by central banks, including the meeting of the Bank of England. Earlier, the Bank of Norway unsurprisingly left its key rate unchanged, but confirmed a “likely” further tightening of monetary policy in December.
Real estate is recovering
The real estate sector, very weakened by the rise in rates for more than a year and a half, took a breath of fresh air on the stock market with the sharp drop in rates this week. In Paris, Unibail-Rodamco-Westfield took 7.62%, Covivio 6,30%, Gecina 5.69%. Elsewhere in Europe, British Land Company gained 7.67% and Vonovia 5.71%.
Other rate-sensitive sectors rose sharply, such as technology or luxury. In Paris, LVMH notably took 3.55%.
Praised results
Several companies which published their results were clearly welcomed by investors: the world number one in temporary employment Adecco jumped 12.34%, the manufacturer of bathroom equipment He will bear by 10.94%, the airline Lufthansa by 7.16%, the chain of stores Sainsbury by 5.73%, the leading airport operator in the world in terms of number of passengers Aena of 5.37% and the engineering and services group Technip Energies of 4.82%.
On the side of the stock market giants, the Danish laboratory Novo Nordisk (+1.37%), the largest European capitalization, presented sharply increasing results, driven by the success of its anti-diabetic and anti-obesity treatments, Ozempic and Wegovy. Its stock rose 1.37%, bringing its gain over the year to over 47%.
Shell rose 1.58% after announcing a profit of 7 billion US dollars in the third quarter.
Oil on the rise
The prices of oil rose again on Thursday, without being able to erase their heavy losses, around 5%, since the start of the week.
The course of baril de Brent de more you Nord gained 1.22% to 85.66 American dollars ($US) and that of American WTI 1.32% to US$81.50 around 6:55 a.m.
The euro strengthened by 0.62% to US$1.0636 per euro, and by 0.27% against the pound, to 0.8722 pounds per euro.
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