2023-08-30 12:08:59
(Photo: The Canadian Press)
MARKET REVIEWS. Global stock markets are mixed on Wednesday, the latest inflation figures in Europe pushed up bond rates and the United States is awaiting new figures from the American labor market.
Stock indices at 8:00 a.m.
After opening slightly higher, the European stock market tipped half into the red following the first elements of inflation in Europe in August. Paris lost 0.33%, Frankfurt 0.34%, while Milan gleaned 0.14% and London 0.33% around 6:35 a.m.
In Asia, the Nikkei 225 of Japan climbed 0.3%, compared to a rise of 0.4% for the Kospi from South Korea. THE Hang Seng of Hong Kong remained virtually unchanged, while Shanghai rose less than 0.1%.
L’australian index jumped 1.2%.
The bitcoin stabilized (-0.57%) at 27,420 US dollars (US$), the day after its price soared after a court decision in the United States which could make cryptocurrency more accessible to investors and the general public .
The context
In Spain, inflation accelerated again to 2.6% over one year in August, after falling below the 2% mark in June.
The first estimate of inflation in Germany in August will be published at 08:00. The first figures published by the regional administrations seem to be mixed, with a decline of 0.2 percentage point to 5.9% in Bavaria, compared to July, against an increase of 0.1 point in North Rhine-Palatinate, at 5.9%.
“This has bolstered expectations of another rate hike from the European Central Bank next month,” said Finalto analyst Neil Wilson.
In response, bond interest rates are tending, that of the ten-year German government loan stood at 2.57% against 2.51% at the close on Tuesday.
Two-year maturities, the most sensitive to monetary policy expectations, also rose. The yield on German two-year debt was worth 3.08%, down from 3.03% on Tuesday.
Wall Street indices are heading for an open around equilibrium, according to their futures, the day after sharp gains after the release of a drop in the number of job vacancies in the United States in July.
“Weak data (…) reinforced expectations of a pause (rate hikes, editor’s note) in September, and tipped the odds in favor of no hike in November as well,” comments Ipek Ozkardeskaya, Swissquote Bank analyst.
Still on the US employment front, the ADP/Stanford Lab monthly report on job creation in the private sector for August is expected at 8:15 a.m., before the opening of Wall Street. Shortly thereafter, the second estimate of US GDP for the second quarter will also be released.
“If the data is in line with expectations, yesterday’s optimism will continue throughout the day,” according to Ipek Ozkardeskaya.
“So in the short term, we expect some divergence between central banks, with data pointing to a pause (in rate hikes) from the Federal Reserve and an ECB hike in September,” Neil Wilson said.
Orsted in slow motion in the United States
Shares in Danish renewable energy company Orsted fell more than 20% in Copenhagen after reporting operating difficulties in the United States.
In its wake, RWE (RWE.F) lost 3.88% in Frankfurt, Vestas (VWDRY) 3.05% in Copenhagen, Voltalia (VLA.F) 3.44% in Paris.
Gabon coup pushes oil up
Oil prices rose around 6:30 a.m., driven by the ongoing coup in Gabon, a producer country of the Organization of the Petroleum Exporting Countries (OPEC).
The baril de Brent de Mer du Nord took 0.73% to 86.11 US dollars (US$) and that of American WTI 0.79% to 81.80 $US.
The shares of the groups present in Gabon also fell in reaction, likeEramet (ERMAY, -16.40% in Paris) et TotalEnergies EP Gabon (RZW.BE-14.59% in Paris).
The price of gaz in Europe stabilized (-0.27% to 35.10 euros per megawatt hour), the day after the announcement of a strike at liquefied natural gas production sites in Australia from 7 September.
The euro was stable against the US dollar at US$1.0881 per euro.
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