2023-08-10 21:23:47
(Photo: The Canadian Press)
MARKET REVIEWS. Global markets were mixed on Thursday, a few hours before the unveiling of the latest inflation figures in the United States.
Stock market indices at 8 a.m.
Later in the day, the US authorities will present their monthly data on inflation which affects consumers.
Economists expect inflation to rise to 3.3% in July, which would be higher than the 3% rate unveiled in June.
In Japan, the Nikkei 225 gained 0.8%, while the Australian index S&P/ASX 200 a pris 0,3%.
Seoul lost 0.3%, Hong Kong slipped 0.2%, while Shanghai added 0.3%.
On Wall Street, the expanded index S&P 500 fell 0.7%, its sixth decline in seven days. The average Dow Jones industrial stocks lost 0.5%.
On the New York Commodity Exchange, the price of oil rose 26 US cents to US$84.66 a barrel.
The context
“All eyes are on the US Consumer Price Index (CPI) report as traders wonder if the Federal Reserve is done with rate hikes,” said Oanda analyst Craig Erlam.
The CPI consumer price index is one of the main measures of inflation and plays a central role in the evolution of monetary policy.
The US central bank remained unclear on its intentions for September, leaving the door open to a further hike in its key rates, a pause before a subsequent rise or the announcement of the end of its monetary tightening cycle.
Analysts expect inflation to come in at 3.3% year on year in July, down from 3% for June, and 4.8% for so-called core inflation which excludes volatile prices energy and food.
“A sharp rise” in inflation, especially the underlying part, “could make investors nervous, but it would have to be really significant to start looking at a rate hike next month,” said Craig Erlam.
Sovereign debt interest rates are rather stable on the bond market around 06:35.
Rain of results in Germany
In Frankfurt, the industrial Siemens (SI.DE) fell 6.98% to US$138.56 after reporting results below analysts’ forecasts, despite net profit of 1.4 billion euros in the third quarter of its staggered fiscal year.
The insurer Allianz (ALV.DE) (+3.22% to US$221.40) reported net profit up 18.2% in the second quarter to 2.3 billion euros, driven by the performance of its property and casualty insurance branches and Life/Health.
The industrial group Thyssenkrupp (TKA.DE) rose 4.59% to US$6.96 after raising its annual forecasts, driven by its automotive business and the IPO of its hydrogen subsidiary.
Reinsurer Munich Re confirmed its annual targets despite net profit down nearly a third year on year, to 1.15 billion euros in the second quarter, and slightly below what analysts polled by Factset expected .
Jefferies analysts are pleased, however, that a solvency ratio came out better than expected.
The telecommunications group Deutsche Telekom (DTE.DE) (-0.89% to US $ 18.60) revised its earnings forecast for 2023 upwards, despite a drop in sales in the second quarter, weighed down by its American subsidiary.
Gas and oil stabilize
The Australian energy giant Woodside will try Thursday to relaunch negotiations with its employees, in order to avoid a strike which worries the markets.
On Wednesday, the price of liquefied natural gas (LNG) soared in Europe by almost 28%, after the announcement of a call for a strike on the offshore platforms of Woodside in Western Australia, which alone supply more 10% of the world’s LNG supply each month.
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