2023-09-22 15:21:30
In New York, before the markets opened, the Dow Jones industrial average and the broader S&P 500 index rose 0.1%. (Photo: The Canadian Press)
MARKET REVIEWS. The world stock markets are trading mixed on Friday, in a still gloomy atmosphere given the scenario of key rates remaining high for a long time which is confirmed.
Stock market indices at 8:30 a.m.
London added 0.3% at the start of the session in Europe. Frankfurt yielded the same percentage and Paris slipped 0.7%.
In New York, before the markets opened, the average Dow Jones industrial stocks was stable and the index expanded S&P 500 advanced by 0.1%.
In Asia, the Nikkei 225 fell 0.5% in Tokyo. The scholarship of Shanghai climbed 1.6% and the Hang Seng jumped 2.3% in Hong Kong. Sydney lost 0.2% and Seoul 0,3%.
On the New York Commodity Exchange, the price of oil took 58 US cents to US$90.21 per barrel.
The context
After opening in a sharp decline, the European stock markets reduced their losses, after the publication of the PMI activity indicators: in the euro zone, private sector activity continued to decline in September, at a still high rate, but a slightly less than the previous month.
“France was at the origin of the surprise decline (both for services and for industry), while Germany experienced a slight improvement” underlines Christophe Boucher, investment director of ABN Amro IS, who adds that “inflationary pressures have further eased” in services for these two countries.
After declines of more than 1% at the close on Thursday, the three main Wall Street indices are expected to rebound slightly, between 0.1% and 0.4%, according to their futures contracts.
Equity markets are under pressure after “the Federal Reserve’s (Fed) tough tone and a series of central bank announcements that reinforce the idea that (in most cases) rates will stay higher for longer », Comments Neil Wilson, analyst at Finalto.
The Fed in fact cast a chill on the markets on Wednesday evening by leaving the door open to an additional increase in its key rates by the end of the year and by reviewing its forecasts for rate developments for 2024.
A majority of the members of the monetary policy committee of the American monetary institution only expect two rate cuts in 2024, two fewer than anticipated in June.
The surprise of investors was felt on the bond market where sovereign yields reached their highest levels in several years, that of the United States at 10 years touched the 4.5% mark on Thursday, a peak since 2007 .
The rates were rather stable compared to the previous day’s close, that of the ten-year German debt stood at 2.74% against 2.73% on Thursday.
In Asia, the Chinese stock markets rebounded after several gloomy sessions: Shanghai gained 1.55% and Hong Kong gained 2.28%.
The Tokyo Stock Exchange ended down 0.52%, after reducing its losses following the announcement, unsurprisingly, of a continuation of the ultra-accommodating monetary policy of the Bank of Japan ( BoJ).
This status quo immediately pulled the yen down against the dollar and the euro: the yen lost 0.26% to 148.26 yen per US dollar ($US).
“We do not think that the BoJ will abandon its negative rate by the end of the year” or even by mid-2025, estimated Tom Kenny in a recent note from ANZ Research.
Adevinta on the market
A consortium led by American funds Blackstone and British Permira has submitted a non-binding offer for the takeover of the Norwegian online specialist arrived, owner in particular of the Leboncoin site. Its shares climbed 22.92% in Oslo.
On the side of oil, the euro and bitcoin
Oil prices rose, driven by the announcement of restrictions on Russian exports of gasoline and diesel, despite the prospect of future increases in American interest rates.
The barrel of North Sea Brent, for delivery in November, took 0.87% to US$94.11. Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery the same month, advanced 1.08% to US$90.60.
The euro fell 0.21% against the dollar to US$1.0639 per euro.
The bitcoin was stable at US$26,630.
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