2023-09-18 13:54:49
(Photo: The Canadian Press)
MARKET REVIEWS. European stock markets are falling on Monday, weighed down by the surge in oil prices while the American Federal Reserve (Fed) will speak on Wednesday on the continuation of its monetary tightening policy intended to curb inflation.
Stock market indices at 8:00 a.m.
The DAX German lost 0.4% and the CAC 40 French 0.7% at the start of the session in Europe, while the FTSE 100 British was stable.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 increased by 0.1%.
In Asia, the stock market Shanghai advanced by 0.3% and the Hang Seng plunged 1.4% in Hong Kong. Sydney lost 0.7% and Seoul 1%.
On the New York Commodity Exchange, the price of oil took 31 US cents to US$91.08 per barrel.
The context
“Market players are currently paying particular attention to the evolution of oil prices,” which have increased sharply, which is likely to fuel inflation, underlines Andreas Lipkow, independent analyst.
This is additional data to take into account for the central banks, several of which are due to meet this week, starting with the American Federal Reserve (Fed).
At the end of its meeting on Wednesday, the powerful monetary institution will announce whether it has decided to keep its rates unchanged in September, as hoped by the markets.
“The Fed is widely expected to keep rates stable,” report economists at Oxford Economics.
However, “the door should remain open to a possible additional increase” for the next meeting “given the resilience that the economy still demonstrates”, nuance Sebastian Paris Horvitz, director of research at Banque Postale AM.
Analysts at the British bank Barclays estimate, for example, that the monetary policy committee “will raise 25 basis points in November and maintain rates until September 2024,” according to a note published Monday.
On the foreign exchange market, the euro advanced timidly (+0.08%) once morest the American dollar ($US), at US$1.06660 per euro.
And on the bond market, the pressure remained significant on government borrowing, the cost of which was getting closer to its highest level of the year, in the United States, at 4.34% around 7:55 a.m., than in France. at 3.24% for the 10-year maturity.
Brent close to US$95
Oil prices remain on the rise on Monday and are approaching the US$95 mark, still driven by fears of a significant deficit in the market with the voluntary reductions of Saudi Arabia and Russia and the resilience of Requirement.
Analysts are now talking regarding the possibility of a barrel reaching US$100.
Around 7:50 a.m., the barrel of North Sea Brentfor delivery in November, gained 0.46% to US$94.36, following peaking at US$94.78.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in October, gained 0.51% to US$91.23, shortly following touching 91.70.
The two crude oil benchmarks reached their highest level since November on Monday. Since the end of June, Brent has soared by around 25% and American WTI by 29%.
Société Générale unscrews in Paris
Societe Generale shares plunged Monday at the start of the session, following the bank unveiled its strategic plan, the first since Slawomir Krupa took over the reins of the establishment.
Around 7:50 a.m., Société Générale shares plunged 11% to 23.57 euros on the Paris Stock Exchange.
Lonza disturbed by a departure
The Swiss group Lonza, one of the major suppliers to pharmaceutical laboratories, surprised Monday by announcing the departure of its general director, Pierre-Alain Ruffieux, for “the end of September” and is embarking on the search for a successor.
This surprise departure is not the first unexpected departure. Already in 2019, the former boss was dismissed less than nine months following taking charge. The stock lost more than 10% around 7:50 a.m.
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