2023-12-20 14:45:27
(Photo: Getty Images)
MARKET REVIEWS. The stock markets are losing their dynamism on Wednesday and are generally trending downward, except for the London Stock Exchange which is relying on the slowdown in inflation to jump.
Stock market indices at 8:00 a.m.
Futures contracts Dow Jones lost -83.00 points (-0.22%) to 37,848.00 points. Futures contracts S&P 500 fell -10.75 points (-0.22%) to 4,809.50 points. Futures contracts Nasdaq lost -47.00 points (-0.28%) to 16,976.00 points.
In London, the FTSE 100 collected +46.01 points (+0.60%) to 7,684.04 points. In Paris, the CAC 40 advanced +6.67 points (+0.09%) to 7,581.34 points. In Frankfurt, the DAX fell -8.16 points (-0.05%) to 16,736.25 points.
In Asia, the Nikkei of Tokyo increased by +456.55 points (+1.37%) to 33,675.94 points. For his part, the Hang Seng Hong Kong rose +108.81 points (+0.66%) to 16,613.81 points.
On the oil side, the price of a barrel of American WTI rose by +US$1.05 (+1.42%) to US$74.99. The barrel of North Sea Brent collected +US$0.99 (+1.25%) to US$80.22.
The context
The interest rate on the United Kingdom’s two-year bond fell sharply by 0.15 percentage points to 4.08%, as investors waited for rate cuts from the Bank of England. The ten-year equivalent also fell, to 3.53% once morest 3.65% at Tuesday’s close.
“This data has given credence to bets that the Bank of England will start cutting rates next year,” said Finalto analyst Neil Wilson.
The interest rate on Germany’s ten-year bond fell below 2% for the first time since March. It fell to 1.96% once morest 2.01% on Tuesday, following the publication of the wholesale price index which slowed more than expected by analysts in Germany in November.
The rise in stock markets in recent sessions is supported by the fall in bond interest rates following the president of the American central bank indicated that its members had discussed a timetable for cuts in key interest rates.
“Investors dream of aggressive rate cuts in a context of strong economic growth, which is not the right recipe for dampening inflation and keeping it at a sufficiently low level,” warns Ipek Ozkardeskaya, analyst at Swissquote Bank.
Several officials from the American central bank have also tried to dampen market optimism.
Latest, Atlanta Fed President Raphael Bostic said Tuesday that he believes “inflation will decline relatively slowly over the next six months, which means there will be no urgency to end our restrictive policy.”
In this context, investors will particularly scrutinize Friday’s publication of the PCE inflation index in the United States for November, the Fed’s preferred barometer for price rises.
Telefonica and the Spanish State on the same line
The Spanish State will acquire 10% of the capital of Telefónica, the Spanish telecoms giant, in order to become a “reference public shareholder”, the Spanish left-wing government of Pedro Sánchez announced on Tuesday. Telefonica shares rose 3.76% in Madrid.
Fedex alerts
The American letter and parcel delivery group Fedex suffered a decline in its turnover in the last quarter, notably due to lower volumes. Its action fell by more than 10% in electronic trading preceding the opening of Wall Street.
Oil under surveillance
Oil prices continue to gain ground on Wednesday, supported by tensions in the Red Sea likely to disrupt supplies and increase the costs of transporting hydrocarbons.
The price of a barrel of North Sea Brent, for delivery in February, rose 1.12%, to US$80.12. Its American equivalent, the West Texas Intermediate (WTI), expiring in January, gained 1.41%, to US$75.
This context also advances the actions of maritime carriers Maersk (+1.83% in Copenhagen) and Lloyd’s table (+2.78% in Frankfurt).
On the bond market, the yield on the ten-year United States bond stood at 3.87%, compared to 3.93% the day before.
The euro fell 0.38% to US$1.0939 per euro.
The bitcoin gained 1.06% to US$42,952.
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