2023-11-29 14:13:27
The interest rate on the ten-year United States bond stood at 4.29%, compared to 4.32% at the close of the previous day. (Photo: Getty Images)
MARKET REVIEWS. The European stock markets are mostly in the green on Wednesday and Wall Street should take the same direction at the opening, with investors hoping to see inflation fall again in the euro zone and the United States.
Stock market indices at 7:45 a.m.
Futures contracts Dow Jones rose by +118.00 points (+0.33%) to 35,563.00 points. Futures contracts S&P 500 posted an increase of +19.50 points (+0.43%) to 4,582.50 points. Futures contracts Nasdaq rose by +89.25 points (+0.56%) to 16,137.25 points.
In London, the FTSE 100 fell by -2.52 points (-0.03%) to 7,452.72 points. In Paris, the CAC 40 rose by +32.10 points (+0.44%) to 7,282.23 points. In Frankfurt, the DAX rose by +152.31 points (+0.95%) to 16,144.98 points.
In Asia, the Nikkei of Tokyo finished down -87.17 points (-0.26%) at 33,321.22 points. For his part, the Hang Seng Hong Kong lost -360.70 points (-2.08%) to 16,993.44 points.
On the oil side, the price of a barrel of American WTI rose by +US$1.36 (+1.78%) to US$77.77. The barrel of North Sea Brent advanced +US$1.25 (+1.53%) to US$82.93.
The context
Finalto analyst Neil Wilson notes that Frankfurt’s Dax index is trading at its highest since early August, thanks to “early signs of disinflation” in November, while national consumer price index figures consumption are expected.
“Inflation in North Rhine-Westphalia (northwest Germany, editor’s note) decreased from 3.1% to 3.0%,” he reports.
In Spain, inflation also slowed slightly in November to 3.2% year-on-year, and core inflation, adjusted for volatile energy prices and seasonal variations, fell by 0.7 points to 4.5%.
These are “good signs” which fuel the hypothesis that the monetary tightening cycle of the European Central Bank (ECB) is “finished”, comments Neil Wilson.
In response, the interest rate on Germany’s debt, which is a benchmark on the European bond market, stood at 2.44% compared to 2.49% at Tuesday’s close.
Eurozone inflation data for November will be released on Thursday, just ahead of the US central bank’s (Fed) preferred inflation indicator, the October PCE index.
This data will be scrutinized by investors in order to confirm or not their idea that the cycle of raising interest rates by the Fed is over.
After statements on Tuesday by members of the Fed considered accommodating by investors, American bond yields fell significantly.
The interest rate on the ten-year United States bond stood at 4.29%, compared to 4.32% at the close of the previous day. Since the start of the month, it has fallen by more than 60 basis points.
“Market operators seem to have switched without nuance towards a scenario of rapid decline in rates and equally rapid convergence of inflation towards 2%,” analyzes Sebastian Paris Horvitz, research director of La Banque Postale AM.
The Hong Kong Stock Exchange fell 2.08%, led by a sharp decline in the technology sector. Delivery platform Meituan tumbled 12.18% after presenting a lower outlook than investors expected, according to Bloomberg. The Chinese e-commerce giant Alibaba (-2.22%) suffered from better than expected results from its competitor PDD. Baidu (-4.08%) and JD.com (-1.57%) were also dragged down.
Philips suffocated
The title of the Dutch medical equipment manufacturer Philips fell 5.25% in Amsterdam, weighed down by a new notice from American health authorities who warned that one of its devices helping patients suffering from sleep apnea risked overheating.
Halfords derailed
The British group specializing in the sale of parts and accessories for cars and bicycles Halfords fell by almost 20% in London after having downgraded its annual result forecasts due to “volatile” sales and a “certain slowdown in the market”.
On the side of currencies and raw materials
Oil prices are increasing. The barrel of North Sea Brent for delivery in January took 1.21% to US$82.67 and a barrel of West Texas Intermediate (WTI)for delivery the same month, gained 1.32% to $77.42.
L’or reached a new high since last May yesterday, at US$2,052.03 per ounce. It was worth US$2,038.94 per ounce this morning, down 0.09% from the day before.
On the foreign exchange market, the euro lost 0.17% against the dollar at US$1.0974 per euro.
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