2023-07-05 16:19:33
(Photo: The Canadian Press)
MARKET REVIEWS. European stock markets are in the red on Wednesday, in a waiting position before the minutes of the Fed expected in the evening and before the return of American investors to the market following a holiday the day before.
Stock market indices at 7:30 a.m.
London, Frankfurt et Paris lost between 0.4% and 0.5% 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 yielded 0.3%.
In Asia, the Nikkei 225 lost 0.2% in Tokyo. The scholarship of Shanghai fell 0.7% and the Hang Seng plunged 1.6% in Hong Kong. Sydney lost 0.4% and Seoul 0,6%.
On the New York Commodity Exchange, the price of oil dropped 13 cents US to US$70.75 a barrel.
The context
Investors were disappointed with services activity in China, which grew in June, but at one of the slowest paces of the year.
The Purchasing Managers’ Index (PMI), released by media group Caixin and S&P Global, came in at 53.9 points last month, down from 57.1 in May.
“Chinese PMIs for June confirm the marked slowdown in the recovery during the second quarter, which requires new concrete support measures from the authorities which are still pending”, regrets Xavier Chapard, member of the research and strategy team at Banque Postale AM.
The markets are awaiting the publication of several macroeconomic indicators, particularly in the United States.
“The ISM services releases on Thursday and job creations on Friday will be watched closely. It would take a sharp deterioration in these indicators to prevent the American central bank (Fed) from raising its rates once more in July following its break in June,” explains Xavier Chapard.
The monetary institution must also publish at 1:00 p.m. the report of its monetary policy meeting held on June 13 and 14, at the end of which the Fed had marked a break in the successive rate hikes decided since March 2022.
Markets are hoping to know “whether the decision to suspend rate hikes in June was made in a pocket handkerchief, and how quickly Fed members plan to resume the cycle” of rate hikes, analyst Neil Wilson said. at Finalto.
The next Fed meeting will be July 25-26. Almost all of the institution’s officials spoke out in mid-June in favor of a further increase.
Fight of billionaires around Casino
Distributor’s share price Casinoin great financial difficulty, plunged by nearly 30% to 3.22 euros on the Paris Stock Exchange, evolving to its historic lows since the resumption of its quotation on Wednesday, the day following two offers of contributions of funds emanating from two camps of billionaires, also candidates for the takeover of the distributor.
The action even fell to 2.64 euros earlier in the morning, its historic low.
One of the two offers comes from billionaire duo Daniel Kretinsky and Marc Ladreit de Lacharrière. The other offer is made by the trio Xavier Niel, Matthieu Pigasse and Moez-Alexandre Zouari.
Adidas perd sa DRH
The sports equipment supplier Adidas (-0.78%) announced on Wednesday the premature departure of its director of human resources Amanda Rajkumar, member of the management board, whose mandate will end following July 15. Adidas has been going through a difficult time since the abrupt end of its collaboration with bubbling rapper Ye.
On the side of oil and the euro
Oil prices were heading in opposite directions on Wednesday following a massive drawdown in US crude inventories reflected buoyant exports and buoyant gasoline demand.
The barrel of North Sea Brentfor August delivery, dropped 0.21% to $76.09.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for same-month delivery, climbed 2.01% to $71.16.
The greenback stabilized (-0.01%) at US$1.0877 for one euro.
The bitcoin was down 1.20% at US$30,437.
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