2023-05-03 22:10:00
(Photo: The Canadian Press)
MARKET REVIEWS. The world markets are awaiting the US central bank’s conclusion on its rates with some assurance, hoping that a pause in its monetary tightening campaign will be announced for the next few months.
Stock market indices at 7:30 a.m.
The futures contracts Dow Jones rose by 43.00 points (+0.13%) to 33,815.00 points. The futures contracts S&P 500 collected 10.25 points (+0.25%) at 4,147.00 points. The futures contracts Nasdaq increased by 39.75 points (+0.30%) to 13,224.25 points.
In London, the FTSE 100 rose by 19.05 points (+0.25%) to 7,792.08 points. In Paris, the CAC 40 increased by 54.26 points (+0.73%) to 7,437.46 points. In Frankfurt, the DAX rose by 136.81 points (+0.87%) to 15,863.75 points.
In Asia, the Nikkei of Tokyo collected 34.77 points (+0.12%) at 29,157.95 points. For his part, the Hang Seng Hong Kong ended down 234.65 points (-1.18%) at 19,699.16 points.
On the oil side, the price per barrel of American WTI fell US$2.19 (-3.06%) to US$69.47. The barrel of North Sea Brent fell US$2.24 (-2.97%) to US$73.08.
The context
Wall Street was oriented slightly higher before the opening the day after a session at half mast, fueled by fears of recession and the return of tensions on certain American regional banks.
Investors are expecting another moderate hike in the US central bank’s main interest rate, by a quarter of a percentage point, as in March, while hoping to hear more dovish messages for the coming months.
The Fed will announce its decision in a press release, followed by a press conference by Fed Chairman Jerome Powell half an hour later.
“Fed Chairman Jerome Powell is likely to signal a pause in June to assess the cumulative effect of monetary policy tightening to date, while leaving the door open for further rate hikes in the future. , as Australia was able to do for example”, estimates François Rimeu, strategist at La Française AM.
According to the financial news agency Bloomberg, several American politicians, including senators Bernie Sanders and Elizabeth Warren, have called on the Fed boss in a letter to halt his rate hikes, saying that the cumulative increases since more than a year made the US economy “more vulnerable to an overreaction from the Fed”.
On Thursday, the European Central Bank is also expected to raise rates for the seventh consecutive time.
It “finds itself faced with a complicated situation. Inflation, which is still too high, is falling only too slowly and would require a continuation of a restrictive monetary policy. But on the other hand, the European economy is showing signs of a slowdown which must be monitored”, underlines Emmanuel Auboyneau, associate manager of Amplegest.
In this uncertain context, yields on US and European bonds fell on the secondary sovereign debt market, a sign that investors are looking to protect themselves with assets deemed less risky.
European banks in the spotlight
The second Italian bank UniCredit (+4.83%) raised its forecast for the full year, after having multiplied its net profit by more than seven in the first quarter, under the effect of the rise in interest rates.
BNP Paribas arrogated 0.75% after recording a record net profit of 4.4 billion euros in the first quarter.
The British bank Lloyds (-3.07%) published a sharp increase in profit in the first quarter thanks to income from interest rates, which rose sharply year on year with the surge in inflation.
Cap of confidence at Lufthansa and Porsche
The European airline giant Lufthansa said on Wednesday it was confident in the continuation of the recovery for the year 2023, foreseeing a “boom” in travel demand this summer, after reducing its net loss in the first quarter. The action, however, yielded 2.90% in Frankfurt.
The title Porsche gained 0.26% after the announcement of a 25.5% increase in its turnover to 10.10 billion euros, better than the consensus of analysts who expected 9.9 billion. The automaker confirmed its guidance for the year.
On the side of oil and currencies
Oil prices fell again on fears of a global recession and the US banking sector, with WTI slipping below US$70 for the first time since late March.
The barrel of West Texas Intermediate (WTI)for June delivery, fell 2.44% to US$69.92.
Its European equivalent, the barrel of North Sea Brent for July delivery, was down 2.03% to US$73.80.
The dollar stabilized against the single currency, at US$1.1038 for a euro. He dropped 0.65% against the yenat 135.65 yen per dollar.
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