2023-08-14 14:41:11
(Photo: The Canadian Press)
MARKET REVIEWS. Asian stock markets closed in the red on Monday, swept away by the financial setbacks of Chinese real estate giant Country Garden, while European stock markets are moving in scattered order and are experiencing a session with low trading volumes.
Stock indices at 8:00 a.m.
And Europe, London dropped 0.40% around 07:20, while Paris gained 0.14% and Frankfurt 0.36%.
The futures contracts of the three main indices of Wall Street presaged a rising opening: the Dow Jones gained 0.23%, the S&P 500 0.18% and the Nasdaq 0,30%.
HAS Hong Kongthe index Hang Seng closed down 1.58% and the composite index of the Stock Exchange Shanghai lost 0.34%, while the place of Shenzhen lost 1.27%.
The Kospi in South Korea was down 0.8% at 2,570.87 and the S&P−ASX 200 in Sydney was down 0.9% at 7,277.00.
The Sensex Indian fell less than 0.1% to 65,283.59. The New Zealand and Southeast Asian markets also fell.
The context
“The week is off to a bad start as Chinese real estate concerns escalate with Country Garden suspending around 10 bonds as of Monday,” said Swissquote Bank analyst Ipek Ozkardeskaya.
Shares in developer Country Garden, one of China’s largest real estate groups, slumped more than 18% in Hong Kong to less than one Hong Kong dollar at the close.
The group, which is due to publish its half-year results later this month, says it expects a net loss of around 45 to 55 billion yuan, at a time when the real estate sector in the country is going through a serious crisis.
And like Evergrande, its competitor in debt to the tune of more than 300 billion euros, any collapse of Country Garden would have catastrophic repercussions on the Chinese financial system and economy.
“Investors are also concerned that the economic data to be released this week in China will further cloud market sentiment,” continues Ipek Ozkardeskaya. China’s retail sales and industrial production figures for July are due on Tuesday and house prices for the same period will be released on Wednesday.
This week, investors will also turn to the United States, for “retail sales and profits of major US distributors, including Walmart, Target and Home Depot,” further comments the analyst.
“Higher-than-expected retail sales might fuel the idea that the US economy will avoid recession, once morest the backdrop of aggressive monetary tightening by the Federal Reserve (Fed)”, the US central bank, details Ipek Ozkardeskaya.
In Europe, UK investors will also be on the lookout for jobs and payrolls data on Tuesday, followed by much scrutinized UK inflation data, and finally retail sales on Friday.
Exor buys 15% stake in Philips
Philips (PHG, +5.61% in Amsterdam, around 7:15 a.m.) announced on Monday that the holding company of the Italian Agnelli family, Exor (EXO.VI, -0.15%)took a 15% stake in the group.
Exor thus becomes a “long-term” minority investor, the Dutch medical equipment manufacturer said in a statement.
On the side of oil and currencies
The courses of oil are down slightly, investors showing concern regarding the economic health of China, and therefore its demand, one of the largest real estate groups in the country finding itself in difficulty.
Around 7:15 a.m., the baril de Brent de la mer du Nord, for October delivery, lost 0.21% to 86.63 US dollars (US$). Its American equivalent, the baril de West Texas Intermediate (WTI)for September delivery, was down 0.28% at US$82.96.
On the currency side, the Russian currency continued to fall on Monday and reached over 101.40 rubles to the US dollar, a level not seen since March 2022 when the currency crashed in the first weeks of the Russian invasion. from Ukraine. Around 7:20 a.m., it was down 1.94% once morest the greenback, at 100.92 rubles to the dollar.
The US dollar was in equilibrium (+0.06%) once morest the euro, at 1.0940 dollar for one euro.
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