2023-11-15 17:19:07
Global markets were lower on Wednesday morning, awaiting a speech from Jerome Powell, the chairman of the United States Federal Reserve. (Photo: The Canadian Press)
MARKET REVIEWS. Stock markets rose on Wednesday, reassured by falling inflation in Europe and the United States, with analysts hoping that these figures will push central banks not to increase their interest rates further.
Stock market indices at 8:15 a.m.
Futures contracts Dow Jones gained +120.00 points (+0.34%) to 35,007.00 points. Futures contracts S&P 500 collected +21.00 points (+0.47%) to 4,532.00 points. Futures contracts Nasdaq rose by +108.75 points (+0.68%) to 15,988.50 points.
In London, the FTSE 100 rose by +81.30 points (+1.09%) to 7,521.77 points. In Paris, the CAC 40 collected +44.90 points (+0.62%) to 7,230.58 points. In Frankfurt, the DAX rose by +117.62 points (+0.75%) to 15,732.05 points.
In Asia, the Nikkei of Tokyo gained +823.77 points (+2.52%) to 33,519.70 points. For his part, the Hang Seng Hong Kong rose +682.14 points (+3.92%) to 18,079.00 points.
On the oil side, the price of a barrel of American WTI fell -US$0.20 (-0.26%) to US$78.06. The barrel of North Sea Brent retreated -US$0.16 (-0.19%) to US$82.31.
The context
European markets were relieved by falling inflation in France, the United Kingdom and Italy.
In France, inflation fell significantly in October, to 4% over one year compared to 4.9% in September. In the United Kingdom, it fell sharply in October, to 4.6% over one year compared to 6.7% the previous month. In Italy, inflation was revised downwards in October, to 1.7% year-on-year.
These data allow the markets to increase their gains taken the day before following the publication of the inflation rate in the United States which slowed to 3.2% year-on-year in October 2023, compared to 3.7% in September and August. , while analysts expected 3.3%.
Wall Street, which closed sharply higher on Tuesday, was heading towards a green opening, with the futures of the main indices gaining between 0.44% and 0.62%.
The publication “reinforced expectations of a rate cut in 2024 for the Federal Reserve (Fed) and the European Central Bank (ECB)”, underline Natixis analysts.
“However, we believe the Fed will wait for confirmation that inflation has slowed below 3% before being confident that it has regained control of inflation, which is not likely to happen before next year,” adds Xavier Chapard, member of the La Banque Postale AM strategy team.
Later in the session, investors will also look at US retail sales in October.
In Asia, the Tokyo Stock Exchange jumped 2.52% and Hong Kong 3.92%.
Luxury carried by China
Luxury, whose activity is partly linked to China, was on the rise, driven by macroeconomic data from the world’s second largest economy published on Tuesday.
Retail sales, a key indicator of household consumption, saw their biggest increase in October since May, according to the National Bureau of Statistics.
Industrial production increased by 4.6%, following +4.5% in September, and the unemployment rate in urban areas remained stable at 5.0%.
In Paris, LVMH gained 2.16%, Kering 1.47%, Hermès 1.31%. In Zurich, Swatch Group took 3.56% and Richemont 1.77%. In Milan, Moncler gained 1.67%.
Siemens Energy weighed down by wind power
The German energy company Siemens Energy reported on Wednesday an annual loss of 4.59 billion euros for its staggered 2022/2023 financial year, weighed down by its wind power sector which continues to suffer from quality problems in particular.
However, the group hopes to generate a profit of 1 billion euros next year. On Tuesday, the German government announced a 15 billion euro rescue plan.
In Frankfurt, its action jumped 5.61%.
Alstom reduces the sail
Alstom, weighed down by commercial and financial difficulties, fell by more than 17% in Paris following announcing a cost reduction plan on Wednesday. The railway group has set itself the objective of reducing its debt by 2 billion euros by March 2025, via an asset sale program and possibly, “depending on market conditions”, a capital increase, according to a statement.
Decline in oil and the pound
Oil prices fell on Wednesday. A barrel of Brent from the North Sea for delivery in January lost 0.34% to US$82.19 and its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in December, lost 0.41% to 77 US$.94.
On the foreign exchange market, the British currency lost 0.32% once morest the greenback at US$1.2459 and 0.10% once morest the single European currency at 87.13 pence per euro. The greenback gained 0.22% once morest the euro, to US$1.0856.
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