2023-04-18 12:47:32
(Photo: 123RF)
MARKET REVIEWS. Western markets were encouraged on Tuesday by the rebound in post-Covid activity in China, but remained awaiting a new series of results from American companies.
Stock market indices at 7:45 a.m.
The futures contracts Dow Jones rose 66.00 points (+0.19%) to 34,195.00 points. The futures contracts S&P 500 rose by 18.25 points (+0.44%) to 4,195.00 points. The futures contracts Nasdaq rose 99.00 points (+0.75%) to 13,285.50 points.
In London, the FTSE 100 posted an increase of 5.54 points (+0.07%) to 7,885.05 points. In Paris, the CAC 40 collected 45.24 points (+0.60%) at 7,543.42 points. In Frankfurt, the DAX posted an increase of 99.07 points (+0.63%) to 15,888.60 points.
In Asia, the Nikkei Tokyo rose 144.05 points (+0.51%) to 28,658.83 points. For his part, the Hang Seng Hong Kong fell 131.94 points (-0.63%) to 20,650.51 points.
On the oil side, the price per barrel of American WTI fell US$0.15 (-0.19%) to US$80.68. The barrel of North Sea Brent fell US$0.09 (-0.11%) to US$84.67.
Context
China announced first quarter growth of 4.5% year on year, driven in particular by retail sales up 10.6% year on year in March, but investment in real estate and industrial production slowed. disappointed.
Faced with these mixed data, the Chinese stock markets failed to continue to advance, after their sharp jump the day before.
Very oriented towards global growth, of which China is the pillar, the European indices rose by 0.54% in Paris, 0.50% in Frankfurt, 0.23% in London and 0.75% in Milan.
Wall Street was preparing to open on this same positive trend.
This rebound in the Chinese economy “is, a priori, welcome in a context of generalized rising concerns about the global outlook”, comments Thomas Bauer, economist at the firm RichesFlores, for whom “nothing says however that the movement will go very far. nor that it will have the ability to pull the rest of the world in its wake.
The dynamism of household consumption was reflected last week in the quarterly results of the flagships of French luxury LVMH (+0.93%) and Hermès (+1.20%) which continued to benefit from it on Tuesday, just like Kering (+1.46%), Burberry (+1.55%) or Swatch (+1.46%).
“It is advisable to remain cautious with in particular the rise of the earnings season”, in an environment of risk of economic slowdown, however, believes Thomas Giudici, head of bond management at Auris Gestion.
The publications of Goldman Sachs, Bank of America or Lockheed Martin before the opening of Wall Street, but also United Airlines and Netflix after the closing will animate the session.
The first quarterly results of banking giants (JP Morgan, Citi and Wells Fargo), published on Friday, showed that the financial sector was still doing well despite the turbulence that shook it in March.
“Growth depends on credit and with banks perhaps under pressure, credit could dry up,” said Bruno Cavalier, chief economist at Oddo BHF.
Markets expect the US central bank (Fed) to remain firm, with central bankers even hinting at another rate hike to counter inflation, now that the banking crisis seems to have passed.
Easyjet optimistic for 2023
The British company Easyje announces that it expects a “significantly reduced” one-year pre-tax loss for its staggered first half and is optimistic for its full year, thanks to a vigorous recovery in demand. The action took 1.80% to 520.20 pence in London. The stock has risen well in recent months but remains very much down compared to its pre-pandemic levels.
Entain teaser
The British online gambling and sports betting group Entain was also up (+4.67% to 1,366 pence), after publishing good quarterly results.
Storm warning at Ericsson
Swedish telecom equipment giant Ericsson has announced that it has stepped up its cost-cutting plan to restore profitability, predicting a “turbulent environment” this year after a first quarter marked by an expected drop in profits. The action fell 6.80% in Stockholm.
On the side of currencies and oil
Oil prices continued their slight decline on Tuesday, with investors focusing on a possible tightening of rates in the United States which could weigh on demand for black gold.
The barrel of Brent from the North Sea for delivery in June slipped 0.31% to 84.50 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in May, dropped 0.33% to 80.56 dollars.
The dollar suffered on Tuesday from its safe haven status after positive data from China, where growth accelerated in the first quarter with the end of zero Covid measures.
The greenback fell 0.42% to US$1.0972 per euro after two sessions of rise.
The pound rose against the dollar (+0.43% to US$1.2430 for one pound).
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