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The European stock markets are heading for a weak start in the wake of the declines on Wall Street the day before and the weakness of the Asian stock markets. Futures on the Euro Stoxx are down by 0.4% like those on the Paris Cac while contracts on the Ftse Mib are trading around parity. Amsterdam seems ready for recovery with futures on parity, after yesterday’s sharp drop (-2.5%) conditioned by the fall of Asml.
Operators are taking a pause for reflection ahead of tomorrow’s ECB meeting which will probably lower rates by a quarter of a point. But the mood remains weighed down by concerns for the tech sector after the profit warning of the Dutch chip giant Asml, which caused the indices and stocks of the sector to slide, including the American giants Nvidia and AMD. Also weighing on the sector are rumors about possible restrictions on sales in the Gulf countries. On the macroeconomic front, the day was lacking in relevant data with the exception of inflation in the United Kingdom which slowed down in September to +1.7% per year from +2.2% previously. All eyes are also on oil which remains under special surveillance after yesterday’s splash. This morning the price is rising slightly with December Brent above 74 dollars a barrel (+0.2%) and WTI above 70 dollars (+0.3%). On the currency front, the euro fell against the dollar to 1.088 from 1.0904 at the close yesterday.
The Tokyo Stock Exchange concludes trading with a decline, in the wake of the correction of US stock indices, after the less than encouraging signals coming from technology, with the drop in sales of the Dutch chip producer ASML, which is weighing on the restrictions imposed by the United States to export to China. The Nikkei reference index recorded a loss of 1.83%, at 39,180.30, giving up 730 points. On the currency front, the yen is stable against the dollar, at 149.20, and against the euro at 162.40.
Hong Kong also opens the session in negative territory, with a sharp correction: the Hang Seng index initially loses 0.86%, sliding to 20,144.75 points. The mainland Chinese markets, then, start in the red amid expectations relating to new stimuli to relaunch the economy: the Shanghai Composite index marks a decline of 0.41% in the first minutes of trading, to 3,188.24 points , while that of Shenzhen suffered a decline of 0.83%, to 1,835.21.
On a cyclical level, the trend in consumer prices in the United Kingdom slows down in September. According to the national statistics office, inflation stood at +1.7% per year compared to +2.2% in August. On a monthly basis the figure is almost unchanged. The core component of inflation (which excludes energy, food, alcohol and tobacco) increased by 3.2% on an annual basis but still marks a slowdown compared to 3.6% in August. Both the total consumer price data and the core data show lower inflation than analysts’ forecasts.
Market Madness: European Futures and Global Trends
Ah, the stock markets – that mystical land where chaos reigns supreme, and sanity goes to die! Grab your popcorn, folks, because we’re about to dive into the latest gripping episode of “As The Markets Turn!”
So, let’s start with the European stock markets, shall we? They’re gearing up for a lovely weak start, down 0.4%, presumably while Wall Street holds a funeral for its own confidence—and let’s not forget the Asian markets that are faring just as well as a wet tissue at a picnic. Futures on Euro Stoxx are down, Paris Cac is sulking, and the Ftse Mib is playing it cool, just hovering around parity, like that friend who shows up to the party but doesn’t really want to be there. Meanwhile, Amsterdam seems to be grooming itself for a bit of a recovery. It’s a bit like watching a phoenix emerging from the ashes, but the phoenix is wearing a party hat and holding a drink that’s gone flat.
Operators are doing what any reasonable person would do in times of financial uncertainty: they’re taking a breather ahead of tomorrow’s ECB meeting, where the rumor mill suggests a 0.25% rate cut will be discussed. It’s almost as if they need to lower rates just to lower their own blood pressure! But wait, what’s that lurking in the background? Ah yes, the ever-looming specter of the tech sector’s troubles, notably thanks to the Dutch chip giant ASML dropping a profit warning. Talk about a mood killer! Some of the American tech giants like Nvidia and AMD are feeling the sting too. It’s like a bad chain reaction where one tech company has a cold, and suddenly the entire sector is down with flu.
Over in the UK, inflation has dropped to 1.7% per year from 2.2%. Is it just me, or does that sound like the world’s blandest roller coaster? The consumers, joyously spending their hard-earned cash, are finding their wallets getting heavier, while oil prices are like that indefinable cousin that always lingers at family gatherings—currently climbing a tad as Brent nudges above $74. Thanks for the update, oil! Really keeping us on our toes!
The Tokyo Stock Exchange is about as fun as a flat tire right now, down 1.83% because, surprise surprise, US indices decided to take a snooze with some less-than-encouraging signals coming from technology. The Nikkei is down 730 points, plunging into the depths of despair, like someone who just found out there’s no cake at a birthday party.
Hong Kong? Oh dear, it opens in negative territory as well, with the Hang Seng index dropping 0.86%. That’s not exactly the party you want to be at! And over on the mainland, traders start their day with a yawn, watching the Shanghai Composite lose 0.41% while Shenzhen also dips just for good measure. It’s like the markets have synchronized their dramatic falls.
On the consumer price front in the UK, things are slowly stabilizing with inflation showing a bit of restraint. It was all the hype last month, and now the figures show a cooling trend. It’s like when you rave about your spicy recipe and suddenly remember you’re feeding your Aunt Edna who has a low tolerance for anything hotter than lukewarm water!
In conclusion, whether you’re invested in tech or oil – or in the latest fad diet promising to flush out your concerns (it won’t, but good luck!) – it looks like this market is going to keep rocking and rolling, one ridiculous headline at a time. So, buckle up and keep your hands inside the ride at all times. Who knows where this wild journey will take us next!
