2023-10-12 14:09:57
Global markets were higher Thursday morning as investors awaited new inflation data in the United States. (Photo: The Canadian Press)
MARKET REVIEWS. World stock markets are moving higher on Thursday before the publication of data on inflation in the United States, a key indicator closely monitored by the powerful American central bank (Fed) as part of its monetary policy.
Stock market indices at 7:30 a.m.
The CAC 40 French added 0.4%, the DAX German 0.5% and the FTSE 100 British 0.7% at the start of the session in Europe.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 increased by 0.2%.
In Asia, the Nikkei 225 jumped 1.8% in Tokyo. The scholarship of Shanghai advanced by 0.9% and the Hang Seng climbed 1.9% in Hong Kong. Sydney took 0.1% and Seoul added 1.2%.
On the New York Commodity Exchange, the price of oil took 72 US cents to US$84.21 per barrel.
The context
Investors were positioning themselves on the markets the day after the publication of the “Fed minutes” in the evening.
These minutes from the latest meeting of the Fed’s monetary committee revealed “a cautious approach regarding monetary policy changes, amid uncertainty surrounding the economic outlook,” noted analysts at Natixis Research.
“The minutes thus underlined the importance of addressing the risks linked to excessive tightening, even in the presence of inflation exceeding targets,” they continue.
“Overall, these minutes reduce the likelihood of a rate hike in November, as the Fed appears reluctant to make changes without clearer economic signals from upcoming data,” conclude economists at Natixis Research.
The markets’ attention will thus be turned on Thursday to the publication of the consumer price index (CPI) for September in the United States, to the extent that this data plays a crucial role in the evolution of the monetary policy of the American institution.
After starting to rise again this summer, this index should resume its decline and settle at 3.6% over one year, against 3.7% last month, according to the MarketWatch consensus.
On the bond market, interest rates were stable compared to the day before, the ten-year American rate stood at 4.57% against 4.56% on Wednesday, the German rate at the same maturity was at 2.73 % against 2.72%.
Easyjet falls, Airbus slightly up
The British airline Easyjet (-4.44% in London) announced Thursday a proposed agreement for the purchase of 157 Airbus (+0.49% in Paris) and the conversion of 35 others, a transaction which represents nearly $20 billion US in total at list price, according to a press release.
Ericsson announces writedowns
The Swedish telecom equipment giant Ericsson (+3.60% in Stockholm) announced Wednesday depreciation of 32 billion crowns (2.7 billion euros), due to the loss of value of the American Vonage, a cloud specialist, acquired in 2021 .
Oil and currencies
Oil prices recovered on Thursday, after the publication of the IEA’s monthly report, warning of possible diesel shortages in Europe, with the risk of escalation in the Middle East still being monitored by investors.
The barrel of North Sea Brentfor delivery in December, took 1.03% to US$86.70.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in November, rose 0.84% to US$84.19.
In the foreign exchange market, the british book had fallen after the publication of weak growth figures in August in the United Kingdom, a figure which does not argue for future monetary tightening by the Bank of England.
But the British currency returned close to balance (-0.06%) against the dollar, at US$1.2306 per pound, and against the euro (+0.04%), at 86.28 pence. for one euro.
The shekelthe Israeli currency, was stable at 3.96 shekels to the dollar.
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