2023-11-03 18:57:07
Global markets were up Friday morning, the day following a difficult session on Wall Street. (Photo: Getty Images)
MARKET REVIEWS. Global markets were higher Friday morning, the day following a strong session on Wall Street fueled by hopes that rising interest rates may be winding down.
Stock market indices at 7:40 a.m.
London, Frankfurt et Paris added 0.2% to 0.3% at the start of the session in Europe.
HAS New Yorkbefore the markets opened, the average Dow Jones industrial stocks progressed and the expanded index S&P 500 were stable.
In Asia, the stock market Tokyo was closed for a holiday. The scholarship of Shanghai advanced by 0.7% and the Hang Seng jumped 2.6% to Hong Kong. Sydney et Seoul rose 1.1%.
On the New York Commodity Exchange, the price of oil took 54 US cents to US$83.00 per barrel.
The context
Over the week, the Paris and Milan indices are heading towards their best progressions since March 2023.
Wall Street indices are heading towards a slightly lower opening.
The main event of the session will be the publication at 8:30 a.m. of the monthly report on American employment in October.
“Highly anticipated,” these figures “become the key to the stock market rebound: if they are weak, the rise might continue,” comments Jochen Stanzl, chief market analyst at CMC Markets.
But if they are higher, it might suggest to investors that there is a risk of new inflationary pressures emerging, which would push the US central bank to consider raising rates further.
Analysts will particularly monitor the pace of wage growth.
On Wednesday, the American Federal Reserve (Fed) announced a status quo on its key rates and investors deduced from the speech of the president of the monetary institution, Jerome Powell, that the Fed is finished with rate increases.
A sharp decline in sovereign interest rates might be observed on the bond market.
Around 7:25 a.m., the yield on the 10-year United States debt stabilized at 4.65%. The European equivalents are also stable.
However, “the fall in bond rates is not a good thing for the Fed,” warns Ipek Ozkardeskaya, analyst at Swissquote Bank. The monetary institution explained that the high level of interest rates on the markets contributes to tightening monetary conditions. If they fall, “the Fed might be forced to raise its rates once more in December, or in January, in order to maintain sufficiently strict financial conditions,” explains the expert.
On the side of the European Central Bank, Isabel Schnabel, member of the executive board, estimated that the institution must not “close the door to a further increase” in interest rates on a potentially unstable path to bring inflation to 2 % by 2025.
On the corporate side, the publication of corporate results continues. On Thursday, technology giant Apple disappointed investors by announcing a slight drop in revenue in the fourth quarter of its staggered fiscal year. The iPhone manufacturer’s shares lost around 3%.
Maersk in the swell
The Danish shipping giant Maersk saw its net profit divided by 17 in the third quarter, to 521 million US dollars, and its turnover fall by 47%, to 12.13 billion US dollars, following a prosperous year in 2022.
Faced with these sluggish results linked to the drop in freight prices and volumes, Maersk will cut an additional 3,500 positions following having reduced its workforce by 6,500 positions during the first nine months of the year.
Its shares fell 15.25% in Copenhagen.
Everything works for the car
BMW (BMWYY) took 2.98% in Frankfurt following presenting a turnover in the third quarter which climbed 3.4% over one year, to 38.5 billion euros, thanks to an increase in car deliveries, notably 100% electric models, deliveries of which increased by 80% over this period.
In the automotive sector, Porsche (POAHY) also took 2.88%, Volkswagen (VWAGY) 1,83%, Mercedes-Benz (MBGAF) 0.89%. In Paris, Renault (RNO.PA) gained 2.11% and Stellantis 1.30%. In Stockholm, Volvo Cars rose 2.83%.
On the side of oil and the euro
The prices of oil hesitated around 7:25 a.m., and showed a negative variation over the week.
The price of a barrel of Brent de more du Nord gained 0.33% to 87.14 US dollars ($US) and that of American WTI gained 0.42% to 82.81 US$.
On the foreign exchange market, theeuro rose 0.26% to US$1.0650 per euro.
The bitcoin lost 2.11% to US$34,180.
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