2023-09-28 12:44:58
Shanghai was falling. London, Tokyo and Paris were making progress. Oil prices were rising. (Photo: The Canadian Press)
MARKET REVIEWS. World stock markets are struggling to rebound on Thursday, in an economic context marked by bond rates perched at high levels, just like those on barrels of oil.
Stock market indices at 8:10 a.m.
Paris slipped 0.3% at the start of the session in Europe, Frankfurt by 0.4% and London of 0.6%.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 were stable.
In Asia, the Nikkei 225 plunged 1.5% in Tokyo. The scholarship of Shanghai increased by 0.1% and the Hang Seng fell 1.4% in Hong Kong. Sydney lost nearly 0.1% and the stock market Seoul was closed for a holiday.
On the New York Commodity Exchange, the price of oil dropped 3 US cents to US$93.65 per barrel.
The context
The Fed’s message is “making its head”, namely “high rates for longer”, comments Neil Wilson, analyst at Finalto.
As a result, “the 10-year U.S. Treasury yield hit a new 16-year high” at 4.65%. The German at the same maturity was at 2.93%, the highest since 2011.
On the oil side, the day following new price records for the year, the prices of the two main references stabilized a little.
The barrel of North Sea Brentfor delivery in November, lost 0.40% to US$96.16.
Its American equivalent, the barrel of West Texas Intermediate (WTI)for delivery the same month, dropped 0.31% to US$93.39, shortly following crossing the US$95 mark.
Evergrande listing suspended
Investors are also keeping an eye on China, where the action of the Chinese real estate developer Evergrandeof its real estate services and electric vehicle construction subsidiaries, was suspended Thursday morning from the Hong Kong Stock Exchange, the day following press information according to which its boss is under house arrest following being arrested at the start of month.
“The current crisis has had far-reaching consequences, including a reduction in consumer spending and investment in the real estate sector, which has had knock-on effects across the Chinese economy,” comments Finalto analyst Neil Wilson.
Mitsubishi Motors: its presence in China uncertain
According to the Nikkei business daily, Mitsubishi Motors (+3.97%), the third member of the Renault-Nissan automobile alliance, would be on the verge of giving up its production in China with its local partner GAC, an activity that has become a financial pit for the Japanese manufacturer.
Faced with a fall in its sales in China once morest a backdrop of the accelerated electrification of this market and the meteoric breakthrough of Chinese manufacturers, Mitsubishi Motors had already suspended its local production since March.
In Paris, Renault dropped some 0.13%.
Computer breakdown at Volkswagen
Production was able to resume at Volkswagen (-0.75%) following a major IT failure shut down the brand’s German factories, including the car manufacturer’s headquarters in Wolfsburg, a spokesperson said on Thursday. The network outage began at midday on Wednesday. Production was halted at all German factories of Volkswagen, the main brand of the eponymous manufacturer.
The dollar falls a little
On the currency side, “since mid-July, the dollar has made a strong rebound once morest all currencies, supported by much better American economic growth than initially expected, a still restrictive rhetoric from the American central bank calling for key rates remain unchanged for a long time and by an unattractive economic situation in the rest of the world in China, Japan, the United Kingdom and the euro zone,” summarize the economists at Natixis Research.
On Wednesday, the single currency fell to US$1.0488, close to its lowest of the year of US$1.0484, reached in early January. The dollar fell 0.38% once morest the single European currency, to US$1.0543 per euro.
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