2023-05-26 15:20:17
(Photo: Getty Images)
MARKET REVIEWS. Global stocks are trending slightly higher on Friday, cautious before the release of an inflation indicator in the United States, although the latest comments on the discussions on the US debt ceiling bring some optimism.
Stock indices
London, Frankfurt and Paris were flat in early trading in Europe.
In New York, before the opening of the markets, the Dow Jones average of industrial stocks and the broader S&P 500 index yielded less than 0.1%.
In Asia, the Nikkei 225 added 0.7% in Tokyo. The Shanghai Stock Exchange rose 0.4%. Sydney and Seoul took 0.2%.
On the New York Commodities Exchange, the price of oil rose 16 cents US to US$71.99 a barrel.
The context
The New York Stock Exchange indexes are heading for an opening up slightly higher by about 0.3% according to their futures.
The publication of the PCE index, the inflation indicator in the United States favored by the American Central Bank, could change the trend.
In recent weeks, several officials of the institution have postponed the scenario of an end to the cycle of hikes in the Federal Reserve’s key rates by the end of the year.
“The Fed seems divided on what to do, so statistics are crucial,” warns Neil Wilson, analyst at Finalto.
Investors have therefore adjusted their expectations, with the market now increasingly expecting a further rate hike from the Fed in June.
In the United States, despite days and nights of discussions, the teams of Democratic leader Joe Biden and the negotiators of the Republican camp have not yet found a budget compromise to raise the American debt ceiling.
But these negotiations are “productive”, assured Thursday the spokesperson for the executive, Karine Jean-Pierre, seeing in it proof that there is “a way forward” towards an agreement. President Biden was also optimistic, assuring that there would be “no default”.
Without an agreement, the United States could however well find itself as of June 1 in default of payment. But according to Stephen Innes, an analyst at SPI Asset Management, it is possible that the effective date of exhaustion of the available funds will be later and “some legislators could start to consider the deadline a little more flexible”.
The analyst therefore fears that “discussions could drag on, despite a probability of agreement greater than 70%”.
On the bond market, sovereign interest rates fell slightly after a rise over the past two weeks which pushed them close to their peak in mid-March.
EnBW renews itself
German energy company EnBW concluded on Friday the sale to a consortium for 1 billion euros of 24.95% of TransnetBW, its subsidiary manager of electricity networks, in order to free up funds to invest in the energy transition. Its action took 1.60% in Frankfurt.
Lufthansa flies to Italy
The German airline giant Lufthansa (-0.25% in Frankfurt) announced Thursday that it had reached an agreement with the Italian Ministry of Economy and Finance to acquire a 41% stake in ITA Airways, heiress of Alitalia, for 325 million euros.
Commodities and Currencies
Oil prices were recovering after a volatile week, betting on a positive outcome of discussions around the US debt ceiling. The barrel of Brent de Mer du Nord rose 0.79% to 76.86 dollars and a barrel of American WTI took 1.09% to 72.61 dollars.
Following a sharp decline, the price of gaz lost another 3.27%, to 24.62 euros per megawatt hour for the benchmark European contract, the lowest since May 2021.
The shares of mining groups are moving up sharply: in London, Anglo Americain took 2.43%, Rio Tinto 3,84%, BHP 2,95%, antofagasta 2,81%, Glencore 2.44% and in Paris ArcelorMittal rose by 2.18%.
The euro rose 0.20% against the greenback at US$1.0746 per euro.
The turkish lira nose dives before the second round of the presidential election on Sunday, at 20 pounds for one US dollar, down 0.33%.
The bitcoin fell 0.16% to US$26,445.
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