2023-09-01 11:41:21
(Photo: 123RF)
MARKET REVIEWS. Global stock markets remain cautious on Friday before the US employment report, crucial for the US central bank, at the end of a busy week in macroeconomic publications.
Stock market indices at 7:45 a.m.
The CAC 40 French rose by almost 0.1% at the start of the session, to 7321.92 points, while the DAX German remained stable,
at 15,948.02 points. THE FTSE 100 British rose 0.5% to 7477.41 points.
US equities were trending higher, the average Dow Jones industrial stocks rose 0.3% to 34,878.00 points. The extended index S&P 500 rose 0.2% to 4525.75 points.
The Japanese benchmark Nikkei 225 took 0.3% to end at 32,710.62 points, while the Australian index S&P/ASX 200 fell 0.4% to 7278.30 points. THE Kospi South Korean gained 0.3% to 2563.71 points and the Shanghai Composite advanced 0.4% to 3133.25 points.
Trading was halted at Hong Kong due to the approach of Typhoon Saola.
The context
The week was driven by economic indicators, including the latest inflation data from both Europe and the United States, which showed that the fight once morest rising prices led by central banks was far from over.
Inflationary pressures remain, be it energy prices, still-strong consumer spending in the United States or a still-tight labor market.
“Disinflation is not a long calm river” note the analysts at Banque Postale AM. “The latest inflation figures do not call into question the trend (…), but they illustrate the fact that the speed and amplitude of the fall in inflation will not always be as sharp and rapid as before the summer”.
But US jobs data for the week showed conditions for finding a job were tightening slightly, bolstering hopes that the Federal Reserve will leave key rates unchanged at its next meeting in September.
Investors are now awaiting the official monthly US jobs report, “the most important economic statistic of the month,” according to John Plassard, investment specialist at Mirabaud.
“A weaker-than-expected job openings number, a slight deterioration in the jobless rate, or weaker-than-expected payroll data might reinforce the idea that the Fed will take a break at the September meeting, and may -be also at the November meeting» writes Ipek Ozkardeskaya, analyst at Swissquote.
In Asia, the Tokyo Stock Exchange took 0.28%, the Nikkei index posting a weekly gain of 3.4%. Shanghai gained 0.43% while the Hong Kong Stock Exchange was closed as Super Typhoon Saola approached.
Investors have welcomed a series of measures from Beijing meant to stimulate the purchase of real estate to revive a key sector of the world’s second largest economy. In addition, manufacturing activity in China recovered in August, at its highest rate for six months.
The automobile slowed down by UBS
A note from UBS analysts has cast a chill over the entire European automotive sector a few days before the start of the Munich show. The bank notably downgraded the builder Renault (-5.02% in Paris), and Volkskwagen (-3.45% in Frankfurt) due to Chinese competition. BMW also fell by 1.72%, Mercedes of 1.27%, Stellar of 0.55%.
Oil nears 2023 highs
Oil prices continued to rise on Friday, pushed by expectations of a further extension of production cuts from Saudi Arabia and Russian exports for the month of October.
The barrel of North Sea Brentfor delivery in November, of which it is the first day of use as a reference contract, took 1.12% to 87.80 $US.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for October delivery, gained 1.11% to US$84.56.
The two world oil benchmarks are on track to make a strong weekly gain, between 4 and 6%, and are trading at levels close to their highest prices for the year.
The euro barely rebounded once morest the dollar (+0.05%), at 1.0848 $US for one euro.
The bitcoin was nearly flat (+0.07%) at US$26,030, following falling sharply on Thursday.
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