2024-01-25 14:43:15
(Photo: 123RF)
MARKET REVIEWS. The European stock markets fell on Thursday, nervous before the announcements from the European Central Bank, while on Wall Street, Tesla could weigh down the trend after its results below expectations.
Stock market indices at 7:00 a.m.
Futures contracts Dow Jones dropped -3.00 points (-0.01%) to 37,976.00 points. Futures contracts S&P 500 posted an increase of +2.25 points (+0.05%) to 4,900.25 points. Futures contracts Nasdaq increased by +22.75 points (+0.13%) to 17,643.75 points.
In London, the FTSE 100 dropped -14.19 points (-0.19%) to 7,513.48 points. In Paris, the CAC 40 decreased by -41.72 points (-0.56%) to 7,413.92 points. In Frankfurt, the DAX fell by -82.72 points (-0.49%) to 16,807.20 points.
In Asia, the Nikkei of Tokyo increased by +9.99 points (+0.03%) to 36,236.47 points. For his part, the Hang Seng of Hong Kong advanced +312.09 points (+1.96%) to 16,211.96 points.
On the oil side, the price of a barrel of American WTI rose by +US$0.74 (+0.99%) to US$75.83. The barrel of North Sea Brent increased by +US$0.74 (+0.92%) to US$80.78.
The context
Shares of American electric vehicle manufacturer Tesla fell 8% in pre-opening electronic trading. Its net profit, excluding exceptional tax benefits, stood at 2.48 billion US dollars (-39% over one year), well below the forecast of 2.69 billion from analysts surveyed by FactSet.
The manufacturer also warned that the rate of growth in volumes could be “significantly lower” during the current financial year compared to that recorded in 2023.
The session will be animated by the meeting of the European Central Bank (ECB), the publication of the first estimate of American growth in the fourth quarter of 2023 and company results.
For the third time in a row since October, the Frankfurt monetary institution is expected to keep its rates unchanged, but what will mainly interest investors is whether ECB members begin to discuss a timetable for lowering interest rates. rate.
Several ECB central bankers have said the chances are low that the Frankfurt institution will ease its monetary policy before the summer.
The President of the ECB, Christine Lagarde, considered a rate cut “likely” during this period, while emphasizing the importance of “data” still to come, in particular on the evolution of prices or wages.
“The increase in inflation in December provides a good reason for the ECB not to give in and to signal that it is not rushing to cut its interest rate at the next meeting,” underlines Neil Wilson, analyst by Finalto.
As for the gross domestic product (GDP) of the United States, it should increase slightly.
“The idea that the Federal Reserve would cut its rates before the ECB when Europe is probably in recession and the American economy is growing at a reasonable pace (…) seems rather counterintuitive when you think about it,” notes Michael Hewson, CMC Markets analyst. The markets hope to see the American central bank make a first rate reduction in March.
In the bond market, interest rates on sovereign debt have been very volatile since December in the face of changing expectations regarding the evolution of interest rates.
The yield on the ten-year German government bond stood at 2.35%, compared to 2.34% at Wednesday’s close.
On the Asian markets side, the Hong Kong (+1.96%) and Shanghai (+3.03%) stock markets continued to benefit from the announcements of new measures announced the day before by Beijing to support the economic recovery in China.
“The good news,” according to Swissquote Bank analyst Ipek Ozkardeskaya, is that China seems “ready to do whatever is necessary to reverse the trend of economic slowdown.”
Wizz Air unscrews
The low-cost airline Wizz Air lost 3.57% in London, after publishing an increased operational loss for the last three months of 2023, in particular because of the impact of the suspension of journeys to Israel after the start of the conflict with Hamas.
Oil on the rise
Oil prices continue to rise Thursday following a larger-than-expected reduction in U.S. crude inventories last week.
The barrel of Brent for delivery in March was worth US$81.08, up 1.31% and the American WTI US$76.23, up 1.50%.
The euro was stable (+0.04%) against the dollar at US$1.0889.
The bitcoin took 1.07% to US$40,190.
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