2023-06-06 12:07:43
(Photo: The Canadian Press)
MARKET REVIEWS. World stock markets moved without much movement on Tuesday, in the absence of major economic indicators and already focused on the next decisions of central banks.
Stock indices at 8:00 a.m.
Global markets were mixed on Tuesday morning, as investors jumped at the slightest hint of a slowdown in the US economy.
This time, it’s a report showing a slowdown in the growth of the services industry that worries the markets.
London, Frankfurt et Paris added less than 0.1% at the start of the session in Europe.
In New York, before the markets open, the average Dow Jones of industrial stocks and the broader index S&P 500 were stable.
In Asia, the Nikkei 225 added 0.9% in Tokyo. The scholarship of Shanghai plunged 1.2% and the Hang Seng lost 0.2% in Hong Kong. Sydney dropped 1.2%. The scholarship of Seoul was closed for a holiday.
On the New York Commodity Exchange, the price of oil dropped US$1.11 to US$71.04 a barrel.
The context
After a strong session on Friday, which allowed the S&P 500 to return to their highest closing levels since August 2022, the markets are “pausing to breathe,” said Neil Wilson, analyst at Finalto.
Main surprise Tuesday in Asia, the australian central bank decided to raise its key rate to 4.1%, the highest since May 2012, without ruling out further increases, while market players were expecting a break.
“Recent data indicates that the risks of upside inflation have increased,” the governor said in a press release.
Following this decision, the Australian currency surged once morest the US dollar. Conversely, the Sydney Stock Exchange lost 1.2% as rising rates posed a threat to buoyant economic activity.
Several central banks are meeting next week, including the US Federal Reserve. Market participants expect a pause in the cycle of policy rate hikes, but consider that possibility a little less likely than in early May, following mixed economic data and statements from bank officials paving the way for a another bearing.
On the bond market, European government bond rates fell slightly following two sessions of sharp increases: the interest on the German 10-year bond stands at 2.33%, that of France at 2.88 %.
Health supports indices
Health companies, a sector sought following in the markets in times of fear over growth, are at the forefront in Europe: the Dane Novo Nordisk gagne 4,43%, Sartorius Stedim 3,18%, Biomérieux 2,63%.
Commodities and Currencies
After their rebound on Monday following the cut in production quotas decided by Saudi Arabia, oil prices started to fall once more: the barrel of Brent de Mer du Nord was worth US$75.01 (-2.22%), and the American WTI 70,53 $US (-2,25%).
The price of wholesale gas in Europe lost ground (-5.9% to 26.80 euros per megawatt hour) following its jump of more than 20% on Monday.
The euro edged down 0.19% once morest the US$, to US$1.0693.
The bitcoin rebounded only slightly (+0.29% to US$25,717) following its worst session in nearly three months on Monday (-5.90%), triggered by the decision of the US securities regulator to sue Binance, the largest cryptocurrency exchange platform, for circumvention of regulations.
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