2023-11-06 14:07:31
(Photo: Getty Images)
MARKET REVIEWS. World stock markets begin the week in a contrasting manner on Monday, following a week of overall increase, while in Europe the signals of deterioration in economic activity are increasing.
Stock market indices at 7:30 a.m.
Paris fell by 0.43%, London by 0.11% while Frankfurt fell by 0.23%.
HAS Wall Street, futures contracts predicted a slight increase, with changes ranging between 0.07% for the Dow Jones and 0.21% for Nasdaq.
The Asian stock markets also rode on what the markets perceived as positive signals: in Japan, the index Nikkei ended sharply higher, gaining 2.37%, while in Hong Kong the index Hang Seng gained 1.71%.
The context
Signals that the American Federal Reserve might adopt a more flexible approach to its monetary policy are no longer able to lift European stock markets.
The session was marked by the PMI activity indicators, which highlighted the weakness of the economy in Europe. The final publication remained as low as the first for the level of activity in the euro zone.
In France, it even painted an economic picture that was even more deteriorated than the initial version.
Another sign of economic weakness, in Germany, industrial orders fell slightly in September, continuing their volatile series within Europe’s struggling leading economy, according to figures published Monday by the German statistics institute Destatis .
As for the United States, if the increase continues, it is much less strong than last week.
This stabilization tempers a continued rise over the past week, which saw Wall Street have its best week of the year.
Performance enabled by the “excellent combination” between lower-than-forecast employment figures, lower-than-expected wage growth and an unemployment rate at its highest level in two years which has generated a “new wave of “optimism” on the markets, summarizes Ipek Ozkardeskaya, analyst at Swissquote Bank.
“For the moment, these are only bets, and they will have to be confirmed soon to maintain the recovery and further increase stock prices,” recalls Pierre Veyret, analyst for ActivTrades.
Ryanair driven by record traffic
Irish airline Ryanair (RYAAY, +7.04%) announced on Monday a net profit up 72% over one year to 2.2 billion euros for its delayed first half, driven in particular by “record” traffic last summer and rising prices.
Vivendi at war with Telecom Italia
The French media giant Vivendi (VIV, -1.75%) announced on Sunday its intention to “use all legal means at its disposal” to “contest” the decision of the board of directors of Telecom Italia (TIT, -2.89%) to sell its fixed network to the American investment fund KKR.
The dollar continues to decline
The American dollar continued to decline, still weighed down by American indicators which reinforce analysts’ expectations of an end to rate increases by the Federal Reserve.
Around 7:30 a.m., the greenback fell by 0.20% once morest the single European currency, to 1.0753 US dollars for one. euro, following hitting 1.0756 US dollars, a new low since mid-September.
Oil and rates rebound
Oil prices rebound following Saudi Arabia and Russia reaffirmed their cuts in crude production and exports until the end of the year: the barrel of Brent was worth 85.96 US dollars (+1.21%) and the barrel of American WTI 81.64 US dollars (+1.35%) around 7:30 a.m.
Yields on the bond market, which fell very sharply last week, were up sharply in Europe, a little less in the United States: the interest rate on the 10-year loan of the American government increased at 4.59% once morest 4.57% on Friday at the close and the French bond with the same maturity 3.29% once morest 3.23% on Friday.
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