2023-08-28 12:23:29
(Photo: The Canadian Press)
MARKET REVIEWS. World stock markets are up on Monday, especially in China following a support measure from the authorities aimed at encouraging financial transactions, in order to bring them back up following several months of turbulence.
Stock indices at 8:00 a.m.
The composite index of the financial center of Shanghai, the SSE, was up 1.20% in latest trade following jumping more than 5% in early trade. The index of the Shenzhen Stock Exchange rose by 0.80%, while Hong Kong advanced 1.25% around 3:10 a.m.
The Stock Exchange Tokyo has gained 1.73%.
European stock markets also started the week up, digesting the meeting of central bankers in Jackson Hole, the main interventions of which took place on Friday followingnoon. Paris gained 0.96%, Milan 0,78% et Frankfurt 0.76% while London was closed due to a public holiday.
The courses of oil rose slightly: the baril de Brent de more you Nord gained 0.24% to 84.68 US dollars (US$) around 03:00, while the barrel of US WTI rose 0.40% to US$80.15.
L’euro rose 0.21% to US$1.0819.
The bitcoin was down 0.55% at US$25,940.
Eventually, Sydney gained 0.6%.
The context
“Gains remain precarious,” however nuance Ipek Ozkardeskaya, analyst at Swissquote, mentioning the weak economic data in the country. “The profits of Chinese companies fell 6.7% last month compared to the previous year”, she mentions for example.
Since January 1, the Hong Kong Stock Exchange has fallen by 8%, that of Shenzhen by 4%, while the SSE has only risen by 0.3%. These figures contrast with the performance of the main stock market indices in Japan (+23%), Europe (Stoxx 50 +12.7%) or the United States (S&P 500 +14.75%).
US Federal Reserve (Fed) Chairman Jerome Powell has “made it clear that the central bank does not yet believe that inflation has been fully brought under control and that it is ready to raise interest rates further if necessary”, develops John Plassard, investment specialist at Mirabaud.
His counterpart from the European Central Bank (ECB), Christine Lagarde also held a cautious speech. “She did not comment on whether the ECB would raise rates at its next meeting,” September 14, although many analysts expect she will not due to the weakness of the economy,” underlines Mr. Plassard.
On the bond market, government interest rates remained unchanged.
Monday’s session is poor in indicators, but the agenda will fill up during the week, with the monthly report on employment in the United States finishing on Friday.
Evergrande collapses for its return to the Stock Exchange
The listing of the ultra-indebted Chinese promoter Evergrande resumed Monday on the Hong Kong Stock Exchange, with a plunge as soon as the opening of the exchanges, following 17 months of suspension for non-publication of its financial results. The title plunged 80% in the last exchanges. Its market capitalization fell to around 600 million US dollars (US$M) at mid-session, compared to 50 billion (US$B) in 2017.
Between January and June, the company lost 33 billion yuan (US$4.53 billion), a loss reduced by half compared to the previous year. It has also seen its cash melt, a situation that should complicate its repayments in the coming months as the group is crumbling under nearly US$330 billion in debt.
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