2023-06-16 12:19:02
(Photo: Getty Images)
MARKET REVIEWS. The world stock markets were moving in the green on Friday, the markets still digesting a week rich in decisions from several central banks, in particular the Fed which decided not to raise its main key rate in June.
Stock indices
Global markets were higher on Friday morning, the day following a robust session on Wall Street.
London et Frankfurt added 0.2% at the start of the session in Europe, while Paris accelerated by 0.6%.
In New York, before the markets open, the average Dow Jones of industrial stocks rose by 0.1% and the broader index S&P 500 of 0.2%.
In Asia, the Nikkei 225 closed up 0.7% in Tokyo to hit a 33-year high. The scholarship of Shanghai added 0.6% and the Hang Seng jumped 1.3% in Hong Kong. Sydney took 1.1% and Seoul 0,7%.
On the New York Commodity Exchange, the price of oil dropped 34 cents US to US$70.28 a barrel.
The context
The week was marked by numerous monetary policy decisions by central banks.
China’s central bank surprised analysts by cutting its short-term policy rate, following adjusting several other rates already.
Then the powerful American central bank, the Fed, marked a pause in rate hikes, following ten hikes in a row since March 2022. Two hikes in its main key rate might possibly be decided in 2023, she said. warned.
As for the European Central Bank (ECB), it decided on Thursday to raise its main interest rate by a quarter of a percentage point, an eighth increase in less than a year.
“The ECB has once more surprised with a rhetoric that is still very harsh, even following the monetary tightening already carried out and the first signs of a slowdown in the economy and inflation seen in the May data”, underlines Xavier Chapard, member of the research and strategy team at La Banque Postale AM.
Inflation forecasts worry
In Europe, “what is causing a significant reaction is the upward revision of inflation forecasts, which signaled that additional measures were needed to bring inflation back to the ECB’s 2% target” , note analysts at Deutsche Bank.
In detail, according to the ECB, inflation should reach 5.4% in 2023, once morest 5.3% forecast in March, then 3.0% in 2024 and 2.2% in 2025, not far from the objective. of 2% eventually targeted.
On the bond market, “long rates have remained fairly stable, which reflects the markets’ fear that monetary policies will go too far and lead to recessions,” explains Xavier Chapard.
In the United States, yields on ten-year Treasury bills stood at 3.73% once morest 3.71% at the close the previous day. In Europe, the interest on the French 10-year loan was at 2.98% once morest 3.01%, the German 10-year at 2.47% once morest 2.50%.
Tesco wants to reassure
The British supermarket giant Tesco (-1.17% in London) said on Friday that he saw the “first signs” that inflation was starting to slow, in a country which saw price increases drop below 10% in April but where the prices of food continue to flare up.
On the side of currencies and commodities
Oil ended the week on Friday slightly lower, caught between hopes of support for demand with the pause in the cycle of Fed rate hikes, the jump in commercial crude reserves in the United States and concerns over to China’s economic health.
The barrel of North Sea Brentfor August delivery, fell 0.14% to US$75.56.
Its American equivalent, the barrel of West Texas Intermediate (WTI) for July delivery, was down 0.22% to US$70.46.
The European currency advanced slightly once morest the American dollar (+0,11%) à 1,0958 $US.
Bitcoin fell 0.28% to $25,474.
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