2023-05-03 03:30:28
Markets moved higher this week on tech mega caps
American. Rates ease with the return of the banking crisis to
US.
Slow European growth
The eurozone economy stalled in the first quarter,
recording lower than expected growth. GDP increased by
0.1%, which is an improvement compared to the last quarter of
last year during which GDP did not grow. economy
stagnates on the side of Germany. Even if it is lower than what had
been anticipated, this is an improvement over the contraction of
0.5% recorded during the last quarter of last year. The
France does better with 0.2%. Its economy has been supported by the dynamism
of its industrial production and foreign trade.
US growth downgraded
According to the revised data, the US economy has grown
slower than initially expected, at a rate of 1.1% in the first
quarter, once morest an initial estimate of 2.6%. The expenses of
consumption were revised slightly downwards. This
revision is essentially due to the decline in investments by
businesses and falling inventories.
Inflation still high in Europe
Even though inflation continues to decline, it still remains very high.
Indeed, with levels around 7% in most countries, the ECB does not
cannot relax his efforts. French inflation continues to rise
at 6.9%, while it fell in Germany. Spain has the highest level
low with barely 3.9% inflation. According to the European Commission, this
decline is fueling a slight rebound in consumer confidence.
The First Republic Bank on the edge of the abyss
We thought the American banking crisis was behind us. It is not
Nothing. When publishing its results, the First Republic Bank
reports $100 billion in withdrawals. After the bankruptcies of
Silicon Valley Bank and Signature Bank, a consortium of major
banks had placed $30 billion on deposit with First
Republic to try to stem the deposit rush. But that didn’t
enough to put the bank back on its feet since its share price
collapsed, losing 50% on Friday April 28. If a buyer is not found
in the days to come, it will be bankruptcy.
LVMH reaches 500 billion
The market capitalization of the company managed by Bernard Arnault
hit $500 billion this week. It’s the first time
that a listed European company reaches this threshold, making its
leading the richest man in the world, far ahead of Elon Musk and
Jeff Bezos.
French debt rating downgraded by Fitch agency
The agency decided to lower the rating of the French debt to AA-. This
decision follows the deterioration of the political climate which, according to
the agency, might “create pressure in favor of a policy
more expansionary fiscal or a reversal of reforms
previous”. This is not surprising given the chronic deficit and
a debt that reaches 3,000 billion euros, i.e. significantly more than
100% of GDP. How far away are the days of the French AAA!
Crypto: crime doesn’t always pay
Author of a gigantic fraud, the South African Cornelius Johannes
Steynberg, founder of Mirror Trading, was ordered to pay 3.4
billion dollars fine for a scam up to 1.7 billion.
It guaranteed investors potential returns of more than 100%
per year, thanks to an algorithm that made it possible to carry out transactions
on the foreign exchange market. Algorithm which obviously turned out to be
completely imaginary. Remember that such performance promises
guaranteed are always impossible to keep.
Calendar of the week
Key Macroeconomic Figures That Can Move Markets
this week :
- Inflation in the Euro Zone for the month of April expected to rise.
- The unemployment rate in the Euro Zone for the month of March
- The announcement of the Fed’s decision on rates, expected to rise
- The announcement of the ECB’s decision on rates, expected to rise
- The US jobs report for April
1683086193
#Focus #markets #week #April
