2023-05-15 12:27:40
(Photo: The Canadian Press)
MARKET REVIEWS. World stock markets rose modestly on Monday with hopes of an agreement on raising the US debt.
Stock market indices at 8:15 a.m.
The futures contracts Dow Jones rose by 133.00 points (+0.40%) to 33,488.00 points. The futures contracts S&P 500 advanced by 15.50 points (+0.37%) to 4,153.50 points. The futures contracts Nasdaq posted an increase of 36.75 points (+0.27%) to 13,433.00 points.
In London, the FTSE 100 collected 35.91 points (+0.46%) at 7,790.53 points. In Paris, the CAC 40 advanced by 26.01 points (+0.35%) to 7,440.86 points. In Frankfurt, the DAX rose by 23.23 points (+0.15%) to 15,937.05 points.
In Asia, the Nikkei of Tokyo collected 238.04 points (+0.81%) to 29,626.34 points. For his part, the Hang Seng Hong Kong rose 343.89 points (+1.75%) to 19,971.13 points.
On the oil side, the price per barrel of American WTI fetched US$0.70 (+1.00%) to US$70.74. The barrel of North Sea Brent earned US$0.70 (+0.94%) to US$74.87.
The context
“The suspense over the (US) debt ceiling is likely to continue until the last minute, prompting investors to be cautious and seek safety in long-term US sovereign bonds and gold,” commented Ipek Ozkardeskaya, analyst at Swissquote Bank.
The US government and financial institutions have been warning for several weeks about the risk of default of payment that the United States runs from June, if no agreement is reached in Congress to vote for an increase in this ceiling. The Republicans do not want, for the moment, not to raise it without massive cuts in the budget, which the Democratic President Joe Biden refuses.
A new meeting is scheduled for this week between Republican Speaker of the House of Representatives Kevin McCarthy and Joe Biden, who said he was “optimistic” on Sunday.
“If Congress fails to raise the debt ceiling before the default, we will enter a recession and it will be catastrophic,” warned Wally Adeyemo, assistant secretary of the Treasury, on CNN on Sunday.
Monetary issues also remain one of the main concerns of investors.
A governor of the American central bank Philip Jefferson estimated Friday evening that the Fed is “on the right track” to bring inflation under control. These comments contrast with those of other officials of the institution.
On the bond market, interest rates on sovereign debt in the United States and European countries rose slightly.
Currencies and politics
The turkish lira lost 0.37% to 19.66 pounds to the dollar.
Sunday’s election did not bring out a new leader in Turkey and a second round between outgoing President Recep Tayyip Erdogan and his opponent, Kemal Kiliçdaroglu now seems certain.
“Political uncertainty is never a good thing for investor sentiment and the next two weeks will be marked by uncertainty, little visibility and high volatility in Turkish assets,” warns Ipek Ozkardeskaya.
The main index of the Istanbul Stock Exchange fell by 6.62%.
As to thai baht, it rises against many other currencies. Compared to the dollar, it takes 0.77% to 33.73 baht per dollar.
In Thailand, the two pro-democracy opposition parties won far more votes in the legislative elections than the outgoing government party supported by the army, according to provisional results.
The currency of South Africa, the rand, jumped 1.36% against the dollar to 19.08 rand to the dollar. According to Bloomberg, comments from the South African finance minister have allayed fears of sanctions against the country, accused by the American ambassador in Pretoria of having provided military support to Russia. The rand hit a historic low last week.
Rakuten tumbles
L’action Rakuten tumbled 9.05% in Tokyo after Archyde.com reported that the e-commerce and online services company, which has been in the red since 2019 due to its heavy investments in mobile telephony in Japan, provided for a capital increase of the equivalent of approximately US$2.2 billion through the issuance of new shares.
On the side of oil and bitcoin
Oil prices fell slightly. The barrel of American WTImaturing in June, yielded 0.36% to 69.79 dollars and that of North Sea Brent for July delivery 0.09% to $74.09.
The bitcoin rose 1.88% to US$27,460 after hitting a two-month low on Friday.
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