2023-06-07 13:58:25
(Photo: The Canadian Press)
MARKET REVIEWS. World stock markets are moving at levels close to equilibrium on Wednesday, taking in the latest statistics without flinching, pending the meetings of the European and American central banks next week.
Stock indices
The FTSE 100 was stable at the start of the session in London. THE CAC 40 lost 0.4% in Paris and the DAX 0.3% in Frankfurt.
In New York, before the markets open, the average Dow Jones of industrial stocks fell by 0.2% and the broader index S&P 500 of 0.1%.
In Asia, the Nikkei 225 tumbled 1.8% in Tokyo, its worst drop in three months. The scholarship of Shanghai added 0.1% and the Hang Seng 0.8% in Hong Kong. Sydney gained 0.2% and Seoul was flat.
On the New York Commodity Exchange, the price of oil added 43 cents to US$72.17 a barrel.
The context
The New York Stock Exchange is expected to experience a quiet open as well, with futures for all three major indices flat.
“We see a recovery on the horizon, but there is still a lot of work to free ourselves from the shocks of the past,” said Wednesday Clare Lombardelli, chief economist of the Organization for Economic Co-operation and Development (OECD), which added that “the recovery will be weaker compared to past standards”.
The OECD has revised its growth outlook for the world economy slightly upwards to +2.7% in 2023, against 2.6% forecast in March. The international institution predicts that inflation will drop to 6.6% in 2023 and then to 4.3% in 2024.
This stubborn inflation pushes central banks to raise their interest rates or leave them high.
The meetings of the US Federal Reserve and the European Central Bank (ECB) next week are thus pushing investors to be cautious and wait-and-see.
Another indicator did not please the markets. China saw its exports contract by 7.5% in May over one year according to customs figures, a decline much more pronounced than expected by analysts polled by the Bloomberg agency (-1.8%) and which is accompanied by a fall in imports of 4.5% over one year.
These figures “still demonstrate that demand is weakening as much” in China as abroad, underlines Craig Erlam, analyst of Oanda, surprised by “the speed at which the economic boom linked to the reopening of China has faded “.
Hong Kong nevertheless rose by 0.81% and Shanghai by 0.08%, supported by the hope that these disappointing data push the Chinese government to take measures to support economic activity.
The Turkish lira is collapsing
The turkish lira fell 6.68% against the dollar to 23.16 pounds per US dollar, also collapsing against most other currencies. It reached a new record low at US$0.0431 for one pound.
Turkish President Recep Tayyip Erdogan, who leads a heterodox monetary policy, appointed a new economy minister on Saturday, Mehmet Simsek, whose mission will be to stem inflation (39.6% over one year in May) and to get the Turkish economy back on track.
When taking office on Sunday, Mehmet Simsek, a supporter of an orthodox economic policy, warned that it would be necessary to return to “rational measures” to restore the economy.
“We see the impact of Simsek pushing the Turkish Central Bank towards rational policy – which means a weaker and more competitive currency,” said Timothy Ash, an emerging markets analyst at BlueBay.
Inditex glasses
The Spanish clothing giant Inditex, owner of the Zara brand, saw its net profit jump 54% in the first quarter thanks to the dynamism of its sales, which offset the impact of inflation on its production costs. Its action climbed 6.85% in Madrid.
Oil up, euro too, bitcoin down
Oil prices rose slightly on Wednesday as further production cuts announced by Saudi Arabia were already almost offset by disappointing economic data from China, although prices remained under pressure.
The barrel of North Sea Brent took 0.94% to US$77.02 and the American WTI 1,07% à 72,51 $US.
The euro was up 0.22% against the dollar, at US$1.0717.
The bitcoin fell 0.51% to US$26,810.
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