2023-06-23 14:10:00
(Photo: Getty Images)
MARKET REVIEWS. Global markets were down on Friday morning following several central banks decided to raise their key rates to fight inflation.
This has happened in particular in the United Kingdom, Switzerland, Norway and Turkey.
Stock indices
The stock market lost 0.2% at London and to Paris at the start of the session in Europe, and 0.7% in Frankfurt.
AT New Yorkbefore the opening of the markets, the average Dow Jones industrial stocks slipped 0.5% and the broader index S&P 500 of 0.3%.
In Asia, the Nikkei 225 tumbled 1.5% to Tokyo and the Hang Seng plunged 1.7% in Hong Kong. The scholarship of Shanghai was closed for a holiday. Sydney tumbled 1.3% and Seoul tumbled 0.9%.
On the New York Commodity Exchange, the price of oil was dropping US$1.29 to US$68.22 a barrel.
The context
European markets were down on Friday, following the publication of the PMI index in the euro zone which reflected a “very strong” slowdown in growth in June, at the end of a week marked by several statements from central banks.
Wall Street was heading for a lower open, according to futures for all three major indexes.
The European stock markets chained their fifth session of decline in a row and took the path of their worst week since mid-March. Around 7:35 a.m., Paris yielded 0.20%, London 0,24%, Frankfurt 0,74% et Milan 0,33%.
Investors are now turning to a series of indicators for France, Germany, but especially the euro zone and the United States.
Private sector growth in the euro zone slowed sharply in June, falling to a level close to zero, weighed down by the difficulties of the industry, according to the PMI Flash index published Friday by S&P Global.
The index, calculated on the basis of business surveys, fell to 50.3 in June, following 52.8 in May, the lowest in five months, “signaling a very sharp slowdown in economic growth in region,” S&P said in a statement.
A figure above 50 signals growth in activity, while a figure below indicates decline.
This publication “announces a difficult second half for private companies in the euro zone, characterized by a general decline in order books over the coming months”, commented Cyrus de la Rubia, economist at Hamburg Commercial Bank, a partner institution of S&P to develop the PMI indicator.
In reaction, theeuro fell sharply once morest the dollardestabilized by the sharp slowdown in growth in June, according to the Flash index published by S&P Global.
Vers 5 h 40, l’euro was down 0.93% at 1.085 4 American dollar ($US).
“The dollar is taking advantage of its safe haven status as market conditions have deteriorated,” commented Ricardo Evangelista, analyst at ActivTrades.
On the bond market, sovereign debt interest rates eased.
The yield on 10-year US government bonds stood at 3.73%, once morest 3.79% on Thursday at the close. The interest rate of the German loan at the same maturity was at 2.35% once morest 2.49 and the French at 2.88% once morest 3.02%.
The markets are also digesting a week full of announcements from central banks and their representatives, starting with Jerome Powell, Chairman of the Federal Reserve (Fed), who indicated that the increases in the Fed’s key rates were not over. .
GSK boosted in London by an amicable agreement on Zantac in the United States
The British pharmaceutical giant GSK saw its stock price in London boosted (+5.56%) Friday morning by the announcement of an amicable agreement in California in the context of a dispute related to the drug once morest heartburn Zantac, accused by patients to have contributed to their cancer.
Siemens Energy, downwind
German energy company Siemens Energy revealed on Friday that the scale of wind turbine failures at its subsidiary Siemens Gamesa was far greater and more costly than expected, leading to a record plunge in its stock price.
Around 7:30 a.m., the title Siemens Energy dropped 33.66% on the Frankfurt Stock Exchange, dropping around 6 billion euros in market capitalization.
On the side of oil and bitcoin
The prices of oil continued to fall on Friday, high global interest rates are rekindling concerns regarding global economic activity and weighing on demand prospects.
Around 7:30 a.m., a barrel of Brent from the North Sea, for delivery in August, lost 1.36% to US$73.26.
Its American equivalent, the barrel of West Texas Intermediate (WTI) for same month delivery, was down 1.36% to US$68.56.
The bitcoin was down 0.37% at US$30,045.
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