2023-10-03 20:52:46
In Asia, the Nikkei 225 fell 1.6% in Tokyo. The Hang Seng plunged 2.7% in Hong Kong. (Photo: The Canadian Press)
MARKET REVIEWS. Global markets were mixed Tuesday morning, the day following a disorderly session on Wall Street.
Stock market indices at 8:00 a.m.
Paris slipped by 0.2% and Frankfurt by 0.3% at the start of the session in Europe. London added 0.4%.
HAS New Yorkbefore the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 were on the rise.
In Asia, the Nikkei 225 the bottom of 1.6% to Tokyo. The Hang Seng plunged 2.7% to Hong Kong. Sydney lost 1.3%. Chinese and South Korean stock markets remain closed for a holiday.
On the New York Commodity Exchange, the price of oil added 11 US cents to US$88.93 per barrel.
The context
Markets are “still trying to determine the impacts of rising sovereign yields on stocks,” said John Plassard, investment specialist at Mirabaud.
Investors have had their eyes on the bond market since Monday, where the yield on ten-year US government bonds has continued to rise, reaching its highest level in almost 16 years.
Around 7:30 a.m., it was at 4.74%, compared to 4.68% at the close the day before. The yield on two-year US government bonds stood at 5.13%, compared to 5.11%, also at its highest levels in 2007.
“The gap between US 2- and 10-year yields is now narrowing,” observes Ipek Ozkardeskaya, analyst at Swissquote Bank.
“The 10-year yield is accelerating faster than the 2-year yield” and this “trend suggests rising inflation expectations, with investors preferring to buy short-term securities and wait for rate hikes to end before returning to long-term securities,” explains the analyst.
In terms of monetary policies, the vice president responsible for banking supervision at the American Federal Reserve (Fed), Michael Barr, declared Monday evening that the Fed should maintain its rates at a high level for a certain time in order to ensure that inflation has returned to the 2% objective.
“The most important question now is not whether or not we need to raise rates further, but rather how long we need to keep them at a sufficiently restrictive level to achieve our goal,” Mr. Barr at a conference in New York.
“I think it will take some time,” he added, considering that the decision will depend “on a certain amount of data to come”.
Evergrande leaps
The Chinese developer with astronomical debt Evergrande ended Tuesday up 28% on the Hong Kong Stock Exchange, where trading in the stock had been suspended since Thursday.
Boohoo booed in London
The British online clothing sales site Boohoo fell on the London Stock Exchange (-8.26%), following announcing a sharp drop in turnover and a widening loss for its staggered first half.
Deutsche Bank sous surveillance
Germany’s leading bank Deutsche Bank has been placed under supervision by a special representative of the financial supervisory authority Bafin, the time to resolve the chaos linked to the integration of the bank accounts of its subsidiary Postbank, Bafin announced on Monday.
The German bank’s shares fell 2.69% in Frankfurt.
On the side of oil and currencies
Oil prices fell slightly, weighed down by profit-taking and the context of risk aversion unfavorable to crude before an OPEC+ technical meeting.
Around 7:30 a.m., the barrel of North Sea Brent, for delivery in December, lost 0.68% to 90.09 US dollars ($US), shortly following having slipped below US$90 per barrel for the first time since the beginning of September. Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery in November, fell 0.52% to US$88.36.
On the foreign exchange market, theeuro was stable (-0.05%) once morest the dollar at US$1.0472.
The Bitcoin fell 1.17% to US$27,520.
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