2023-07-07 13:42:14
(Photo: Getty Images)
MARKET REVIEWS. In the aftermath of a very marked session in the red, the world stock markets are moving in dispersed order on Friday, hesitant and cautious before a new indicator on American employment that investors consider important for the orientation of central bank policy.
After spending a good part of the morning in negative territory, the European stock market indices went up the slope and ended up rebounding at the start of the afternoon, after a very difficult session the day before.
Stock indices
London, Frankfurt and Paris took between 0.2% and 0.3% 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 0.1%.
In Asia, the Nikkei 225 tumbled 1.2% in Tokyo. The scholarship of Shanghai fell 0.3% and the Hang Seng plunged 0.9% in Hong Kong. Sydney tumbled 1.7%. THE Sensex Indian lost 0.6%.
On the New York Commodity Exchange, the price of oil added 22 US cents to US$72.02 a barrel.
The context
On Thursday, the publication of job creations in the United States – which turned out to be twice as numerous as expected – had already “convinced the financial markets that central banks would again raise their rates to fight against inflation”, explain the Kiplink analysts, so that the rates on the bond market had exploded and the investors had abandoned the equity markets, the European stock markets even recording their worst session since March 15.
“The global stock indices continued to fall on Friday”, before rising slightly in Europe, investors being cautious and “seeking security in a context of growing uncertainty”, notes Pierre Veyret, analyst at ActivTrades.
“The decline in trading volumes due to the summer period, combined with the risks that the continued aggressive positions of central banks pose to growth and corporate earnings, make the general environment very discouraging for equity investors,” said he.
For the rest of the session, all eyes will be on the US monthly jobs report released on Friday afternoon, with investors hunting down any clues that could influence US central bank (Fed) policy and those other world economic powers.
“Higher than expected figures should allow the Fed to continue its tightening campaign” decrypts Pierre Veyret, “while mediocre figures should raise hopes in a more accommodating tone and somewhat ease the pressure exerted on equities” .
Pending this key report, interest rates continued to tighten slightly on the bond market, in the wake of their surge the day before, the British 10-year rate reached 4.68%, up slightly from Thursday (4.65%), where it had already reached a high since 2008.
The American 10-year rate (4.06% against 4.03% the day before) and the German rate (2.63% against 2.62%) continued to tighten, while the French remained stable, at 3.18% .
Thyssenkrupp bets on hydrogen
The German industrial conglomerate Thyssenkrupp saw its share price climb by 3.40%, after having introduced its subsidiary producing hydrogen installations, Thyssenkrupp Nucera, on the Frankfurt Stock Exchange on Friday.
The start of Thyssenkrupp Nucera’s stock market journey seems promising: posting 20.20 euros on its first listing, already above the IPO price set at 20.0 euros, the Dortmund group’s share price moved mid-morning to €21.22.
On the side of oil and the euro
Oil prices advanced on Friday, further boosted by good news from US demand for refined products.
The barrel of North Sea Brentfor August delivery, was up 0.37% to $76.81.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for same month delivery, gained 0.46% to US$72.13.
The foreign exchange market was also quiet ahead of the US employment figures. The euro was stable (0.01%) against the dollar, at US$1.0890.
The bitcoin was giving up ground, losing 0.52% to US$30,157.15.
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