2023-07-31 16:34:50
(Photo: The Canadian Press)
MARKET REVIEWS. Asian stock markets are up sharply on Monday, while European markets are down slightly following the publication of a further decline in manufacturing activity in China, at the dawn of a busy week in economic indicators in Europe and in the United States.
Stock market indices at 7:30 a.m.
The futures contracts Dow Jones gained +44.00 points (+0.12%) to 35,636.00 points. The futures contracts S&P 500 rose by +6.25 points (+0.14%) to 4,612.75 points. The futures contracts Nasdaq gained +17.00 points (+0.11%) to 15,864.50 points.
In London, the FTSE 100 posted an increase of +0.13 points (+0.00%) to 7,694.40 points. In Paris, the CAC 40 rose by +35.08 points (+0.47%) to 7,511.55 points. In Frankfurt, the DAX increased by +17.54 points (+0.11%) to 16,487.29 points.
In Asia, the Nikkei Tokyo closed up +412.99 points (+1.26%) at 33,172.22 points. For his part, the Hang Seng Hong Kong gained +162.38 points (+0.82%) to 20,078.94 points.
On the oil side, the price per barrel of WTI American advanced +US$0.80 (+0.99%) to US$81.38. The barrel of North Sea Brent advanced +US$0.59 (+0.69%) to US$85.58.
The context
In Japan, the flagship Nikkei index gained 1.81% at the close and Chinese stock markets were up sharply in recent trade, with Hong Kong gaining 1.61% and Shanghai 0.34%.
Investors seemed to appreciate the publication of a better than expected indicator for the Chinese economy, also satisfied with the decision of the Japanese central bank.
The latter indeed surprised the markets by launching an operation to buy Japanese public bonds (JGB) with a maturity of five to ten years, in an attempt to calm the rise in Japanese borrowing rates.
In China, manufacturing activity fell back in July, posting a decline for the fourth consecutive month, said the Chinese National Bureau of Statistics (NBS). The Purchasing Managers’ Index (PMI), however, came out better than expected by analysts polled by Bloomberg.
In this context, the Chinese government on Monday released a 20-point plan to boost consumption, including further supporting housing demand, the culture and tourism sector, as well as the “green consumption” sector, including electric vehicles
“While the authorities have expressed support for the economy, this has so far not translated into the kind of significant fiscal stimulus that many market participants have grown accustomed to,” said economist Robert Carnell. from ING.
European markets reacted differently to the Chinese indicator, opening slightly lower. Around 5:50 a.m., Paris was stable (+0.03%) as was Frankfurt (-0.09%), London dropped 0.23%.
The session will be mainly guided in Europe by the publication “today of the consumer price index (CPI) for July and the gross domestic product (GDP) for the second quarter for the euro zone”, note analysts of the Deutsche Bank.
“When it comes to earnings, with regarding half of the S&P 500 companies having already released their results, all eyes will be on Apple and Amazon, which will release theirs on Thursday,” they add.
Among the other appointments of the week on the side of the results of companies, those of AMD and Qualcomm will be “closely watched with regard to the chips”, they continued.
On the bond market, rates rose slightly around 5:50 a.m. The German 10 rate stood at 2.51% once morest 2.49% at the close on Friday.
Heineken sells less beer
The Dutch brewer Heineken fell nearly 6% in Amsterdam around 3:50 a.m., following announcing a 5.6% drop in beer sales and an 8.6% drop in first-half net profit on Monday.
Toyota accelerates
The title Toyota climbed 3.29% on the Japanese Stock Exchange. The automotive giant announced on Friday that it would sell a small slice of its shares in Japanese telecom operator KDDI (-0.91%) for 250 billion yen, as part of a share buyback program conducted by the latter.
Mitsubishi gained 2.81%, Honda 2,57% et Nissan 0,73%.
On the side of oil and currencies
The courses of oil stabilize Monday around 3:50 a.m., following having signed their sixth session on Friday in seven trading days.
The price of barrel of Brent of the North Sea for delivery in September dropped 0.10%, moving to 84.90 dollars around 3:50 a.m. On Friday, it had exceeded the threshold of 85 US dollars (US$) for the first time since mid-April.
As for the barrel of West Texas Intermediate (WTI) US at the same maturity, it was stable (-0.04%), at US$80.54.
L’euro was also flat (+0.01%) at US$1.1018.
The bitcoin took 0.39% to US$29,436.
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