2023-10-05 12:30:20
World markets were mixed Thursday morning, the day after a positive session on Wall Street fueled in particular by the decline in oil prices. (Photo: The Canadian Press)
MARKET REVIEWS. World stock markets are moving without trend on Thursday, with investors navigating without taking any risk in an environment still marked by high bond rates, while awaiting the publication of unemployment figures in the United States on Friday.
Stock market indices at 7:30 a.m.
Paris slipped by 0.3% and Frankfurt by 0.2% at the start of the session in Europe. London was stable.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 fell by 0.3%.
In Asia, the Nikkei 225 jumped 1.8% in Tokyo. THE Hang Seng rose 0.1% in Hong Kong. Sydney added 0.5% and Seoul was stable.
On the New York Commodity Exchange, the oil price dropped 90 US cents to US$83.32 per barrel.
The context
However, the New York Stock Exchange started to rise again on Wednesday after the publication of the ADP report showing a number of job creations much lower than expected, giving hope for the end of monetary tightening by the American Central Bank (Fed).
“The good news is the bad news, and vice versa, as markets navigate the Fed’s trajectory,” commented Stephen Innes in a note from SPI Asset Management.
“Weakness” in further U.S. jobs data due Friday “could dampen the recovery in yields and give the stock market a little breathing room.” Investors want to see a slowdown in the labor market and inflation, but are, at the same time, reluctant to see economic growth weaken too much,” commented Jochen Stanzl, analyst at CMC Markets.
On the bond market, the 10-year American rate flirted with the levels of the day before. It reached 4.718% against 4.734% on Wednesday. In Europe, the German rate at the same maturity rose again to 2.927% against 2.917%, and that of France to 3.501% against 3.480%.
“The markets are on a roller coaster ride this week” and “the slightest indicator” can change the situation, notes Ipek Ozkardeskaya of Swissquote Bank.
Tobacco: Imperial Brands confident
The British tobacco giant Imperial Brands (+3.83%) says it is well on its way to achieving its results targets for the 2022/23 financial year as its action recovers on Thursday, after having suffered the day before from announcements of new restrictions coming to the United Kingdom in the sale of tobacco products.
Alstom derailed
In Paris, the railway manufacturer Alstom dropped more than 35%. It announced Wednesday evening that it had recorded a free cash flow of -1.15 billion euros in the first half of its staggered 2023-2024 financial year, ending September 30, and expects it to remain negative over the entire period. exercise, contrary to previous announcements.
The group has published “preliminary” financial information to warn that free cash flow, previously announced as “significantly positive” for the financial year, would in fact be negative, between -500 and -750 million euros.
Rail green light for Hitachi
The Japanese Hitachi (+2.34%) received the green light from the British competition authority (CMA) on Wednesday for the purchase for an amount of 1.7 billion euros of the railway signaling activities of the French Thales , after the Japanese group agreed to make certain sales to remedy London’s concerns.
Imperial Brands will release its annual results on November 14.
Accord Toyota-LG
The world’s leading automobile manufacturer Toyota (+4.54%) and the South Korean LG Energy Solution announced on Wednesday the signing of an agreement for the supply by LG to Toyota of battery modules which will be used from 2025 in Toyota electric vehicles assembled in North America.
Oil continues to decline
Oil prices continued their decline on Thursday, after their fall the day before due to fears related to demand and the considerable increase in gasoline stocks in the United States.
The barrel of North Sea Brentfor delivery in December, lost 1.53% to 84.50 American dollars ($US).
Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in November, fell 1.67% to US$82.79.
On Wednesday, Brent fell by almost 6% and WTI by 5% during the session.
The American dollar fell again slightly on Thursday against the euro after the publication of weak American economic indicators: it dropped 0.16% against the euro, to US$1.0520.
The bitcoin was trading at US$27,729 (+0.25%).
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