2023-07-17 13:59:15
(Photo: The Canadian Press)
MARKET REVIEWS.
Global markets were down on Monday after weaker-than-expected growth was reported in China, underscoring the difficulties of the world’s second-largest economy.
Stock market indices at 9 a.m.
The futures contracts Dow Jones fell -82.00 points (-0.24%) to 34,596.00 points. The futures contracts S&P 500 retreated -5.25 points (-0.12%) to 4,531.50 points. The futures contracts Nasdaq rose by +6.25 points (+0.04%) to 15,700.50 points.
In London, the FTSE 100 posted a decline of -16.03 points (-0.22%) to 7,418.54 points. In Paris, the CAC 40 posted a decline of -91.11 points (-1.24%) to 7,283.43 points. In Frankfurt, the DAX yielded -96.94 points (-0.60%) to 16,008.13 points.
In Asia, the Nikkei of Tokyo and the Hang Seng of Hong Kong are closed.
On the oil side, the price per barrel of American WTI was down -0.85$ (-1.13%) to 74.57$. The barrel of North Sea Brent was down -0.89$ (-1.11%) to 78.98$.
The context
Investors were once again put off by economic news from China.
“The rebound effect due to the reopening of the country at the end of last year does not seem to have lasted very long. After the declines in the manufacturing industry and foreign trade, the Gross Domestic Product data show less growth than expected,” said Vincent Boy, analyst at IG.
If the Chinese authorities have announced measures in recent weeks to revive the economy, “the evolution of the Yuan and the situation on the level of indebtedness could reduce the room for maneuver”, he explains.
Investors will focus on corporate results, in the United States where financials opened the ball on Friday, and in Europe.
On the macroeconomic side, few leading indicators are expected, even if the week will be driven by retail sales on Tuesday in the United States, the final estimate of inflation in the euro zone on Wednesday, or inflation in Japan on Friday.
On the bond market, the interest rates of European States and the United States fell, in line with the trend of last week.
Richemont tumbles, luxury without shine
The Swiss luxury giant Richemont (-9.22% in Zurich), owner of the Cartier jewelry house, on Monday unveiled quarterly sales up 14% to 5.3 billion euros, driven by the recovery in China which offset a decline in the Americas zone. This is a little worse than expected by analysts.
“In a slow macro-economic context, it is more difficult to sell jewelry to the middle classes” rather than bags or clothes, said Luca Solca, luxury sector analyst for Bernstein.
The entire luxury sector, gaining last week, suffered significant losses on Monday: in Paris, LVMH lost 4.40%, Hermès 3.93%. Moncler was down 3.73% in Milan.
Gresham House embellit
The action of the British asset management company Gresham House jumped 55.15% after the announcement of a takeover offer by the American investment company Searchlight accepted and recommended by the board of directors, and which values the company at 469.8 million pounds.
On the side of oil and currencies
Oil prices fell on Monday, weighed down by Chinese growth figures in the second quarter, revealing a post-Covid recovery which has tended to run out of steam in recent months.
The barrel of Brent for delivery in September yielded 1.28% to US$78.85 and a barrel of American WTI for August delivery 1.34% to US$74.41.
The euro rose slightly (+0.06%) against the dollar, to US$1.1235.
The yuanwhose exchanges are strictly regulated by Beijing, yielded 0.31% to 7.1655 yuan for one dollar
The bitcoin was down 0.26% US$30,210.
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