2023-06-08 23:26:17
(Photo: Getty Images)
MARKET REVIEWS. European stock markets are trying to recover on Thursday following the euro zone entered a technical recession, while Wall Street is expected to open around equilibrium, amid concerns regarding upcoming central bank meetings.
Stock indices at 8:00 a.m.
Global markets were mixed on Thursday morning, the day following a tough session for tech stocks in New York.
Frankfurt added 0.2% and Paris 0.3% at the start of the session in Europe. London yielded 0.2%.
In New York, before the markets open, the average Dow Jones of industrial stocks and the broader index S&P 500 were stable.
In Asia, the Nikkei 225 lost 0.9% in Tokyo. The scholarship of Shanghai took 0.5% and the Hang Seng 0.3% in Hong Kong. Sydney lost 0.3% and Seoul 0,2%.
On the New York Commodity Exchange, the price of oil dropped 16 cents US to US$72.37 a barrel.
The context
The euro zone entered a technical recession at the start of the year with a decline in GDP for two consecutive quarters, of 0.1% between January and March, following a decline of the same magnitude from October to December, according to figures revised by Eurostat.
The European statistics institute had so far expected stagnation (0%) in the last quarter of 2022 compared to the previous quarter and growth of 0.1% in the first quarter of 2023.
The recent decline in Germany’s figures explains in particular the sharp downward revision. Europe’s largest economy, it itself announced at the end of May that it had entered recession, penalized by the difficulties of its industry.
On the other side of the Atlantic, Wall Street is expected to experience a quiet open, with futures for all three major indices hovering around balance.
“With the session in New York, we will see if investors believe that the Fed will go to a rate hike in June,” said Stephen Innes of SPI AM.
Investors’ attention is focused on the next meeting of the Fed’s Monetary Committee (FOMC), which will take place on June 13 and 14, while that of the ECB will be held on June 15.
Less than a week before this deadline, the markets were surprised by the decision of the Bank of Canada, which “made an unexpected rate hike of 25 basis points”, observe analysts at Deutsche Bank.
“It may just be one central bank, but it follows a similar surprise hike from the Bank of Australia on Tuesday, so investors are starting to see a pattern” of further rate hikes emerging. , they continue.
In the bond market, yields on ten-year Treasury bills stood at 3.80%. In Europe, the interest on the French 10-year loan was at 3.01%, the German 10-year at 2.46%.
The falling tech
The rise in bond yields did a disservice to technology stocks, which were generally on a downward trend, in the wake of sharp declines by American giants in the sector on Wall Street the day before, Amazon having for example lost 4.25%, Alphabet 3,78% et Microsoft 3,09%.
On the Old Continent, Deezer dropped 0.68% following posting losses of nearly 5% in the morning, Get hold of it 1,71% et Dassault Systems 0.75%. In Amsterdam, ASM International yielded 1.18% and Just Eat 4.79%. In Frankfurt, Infineon was down 0.15%.
The bankers are smiling
Banking stocks were at the top of the DAX, in Frankfurt, the title of Commerzbank took 0.65%, the Deutsche Bank 1,07%.
In Paris, Agricultural credit gained 1.53%, BNP Paribas 1.36% and Société Générale, which has announced the sale of four subsidiaries in Africa, took 2.17%.
In Zurich, Swiss credit gained 1.06% and UBSthe number one in the Swiss banking sector, 0.82%.
Commodities and Currencies
Oil prices were up on Thursday. The price per barrel of North Sea Brent for August delivery gained 0.63% to US$77.37. Its American equivalent, the West Texas Intermediate (WTI)with a July expiry, was up 0.63% to US$72.99.
The euro gained 0.31% once morest the dollar, to US$1.0733.
The bitcoin gained 0.34% to US$26,454.
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