2023-08-11 17:07:48
Global markets were up Thursday morning. (Photo: The Canadian Press)
MARKET REVIEW. Stock markets are trending lower on Friday as the release of lower-than-expected US inflation failed to allay all investor fears.
Stock indices at 8:45 a.m.
And Europe, Paris yielded 0.76%, Frankfurt 0,45% et Milan 0,52% vers 07 h 15.
London fell 1.05% after news of a 0.2% rise in UK gross domestic product (GDP) in the second quarter compared to the first, driven by manufacturing activity and a drop in material prices , or by the hotel and catering industry.
This statistic confirms the expectations of a further rise in the rate of British central bank (BoE) in September, which weighs on equities, but increases the livre sterling (+0.25% to 0.864 1 pound for one euro) and the interest rates of the British State loan (4.47% for the 10-year debt, against 4.36% the day before) towards 07:10.
The Stock Exchange Shanghai lost 2.01% and Hong Kong 0,90%.
The Kospi de Seoul fell by almost 0.2%, while the S&P−ASX 200 Sydney fell 0.3%.
The benchmark S&P 500 Wall Street gained less than 0.1% on Thursday after government data showed consumer prices rose 3.2% in July. This was higher than the previous month, but lower than expected.
HAS New Yorkbefore the opening of the markets, the Dow Jones average of industrial values rose by 0.8% and the broader S&P 500 index conceded less than 0.1%.
On the New York Commodities Exchange, the price of oil fell 14 US cents to US$82.68 a barrel.
At 3.2%, inflation in the United States in July was up from 3% the previous month, but below the forecast of 3.3%.
The context
Wall Street is heading towards an open close to equilibrium, according to the futures contracts of the three major indices.
At 8:30 a.m., investors will take notice of U.S. producer prices in July.
Thursday, the consumer price index, the main measure of inflation, came out a little below analysts’ forecasts.
But the markets are not completely relieved of their fears about a possible new rise in the key rates of the American central bank, the Fed.
San Francisco Fed President Mary Daly told Yahoo! Finance that “it is not a single number that declares” the “victory” of the Fed on inflation. “There is still work to be done. And the Fed is fully committed to resolutely bringing inflation back to its 2% target,” she said.
Around 7:10 a.m., the US dollar (US$) was down 0.12% against the euro, at US$1.0994 per euro. Interest rates on European sovereign debt rose on the bond market, that of the 10-year German government bond standing at 2.59%, against 2.53% at the close of the previous day.
In China, investors, who have been worried for several months about the strength of the economy, now fear the consequences of the real estate crisis.
“Chinese local authorities are highly indebted and (…) the real estate crisis is causing their debt-to-income ratio to explode,” explains Ipek Ozkardeskaya, an analyst at Swissquote Bank, which further reports that China’s largest real estate developer, Country Garden (- 5.77% in Hong Kong), could post a huge loss in its half-year results.
Since the start of the year, its stock has fallen 63%.
UBS fends for itself
The Swiss banking giant UBS (UBS, +4.20% in Zurich) renounced the state and central bank support measures intended to facilitate the takeover of Credit Suisse, believing that they are no longer necessary.
KKR and Italy on the same line for TIM
The nationalist government of Giorgia Meloni joined forces with the American investment fund KKR on Thursday for a joint offer to buy the fixed network of the incumbent operator Telecom Italia (TIM).
The Ministry of the Economy intends to take a share of “up to 20%” in the future company of TIM (+0.07% in Milan) combining its fixed network and its subsidiary of submarine cables, announced the government in a press release.
On the oil and gas side
The prices of oil were uncertain about which direction to take on Friday, between the IEA’s upward revision to crude demand growth forecasts and rising US inflation that could pave the way for another rise in crude oil demand. Fed rate.
The baril de Brent de la mer du Nordfor October delivery, rose 0.42% to US$86.76 and that of West Texas Intermediate (WTI) took 0.31% to US$83.07.
The Dutch TTF futures contract, considered the European benchmark for natural gas, stabilized at 36.86 euros per megawatt hour (MWh).
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