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Hesitation in sight in Europe, few investors present
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Markets in Japan, China and the United States are closed on Monday
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2023 should be a continuation of the difficult year 2022
by Blandine Henault
PARIS, Jan 2 (Archyde.com) – The main European stock markets are expected to start 2023 on a hesitant note, little helped by the closure of many other financial centers and a hardly encouraging economic outlook.
According to the first indications available, the Parisian CAC 40 could gain 0.06% at the opening, the Dax Frankfurt would fall by 0.32% while the London Stock Exchange will remain closed on Monday.
The markets are also closed in Japan, China and Hong Kong and will also be in the United States.
In 2022, the CAC 40 lost 9.46%, the German Dax 12.34% and the Stoxx 600 12.9%, its biggest annual drop since 2018. Only the British Footsie managed to gain among the major European stock exchanges. 0.91% over the year.
Galloping inflation, accelerated tightening of central banks, war in Ukraine or even COVID-19 in China, the elements were hardly favorable to the financial markets last year and the outlook for this new year remains gloomy.
Investors anticipate a further rise in the cost of credit in Europe and the United States, at the risk of a profound deterioration in the economy. On Sunday, the managing director of the International Monetary Fund (IMF), Kristalina Georgieva, warned that the new year would be “more difficult than the year we are leaving behind” due to the expected slowdown in the United States, Europe and China.
No clearing is emerging on the Ukrainian front, where the authorities announced Monday drone attacks against major Kyiv infrastructure and around the capital.
In China, the COVID-19 epidemic is on the rise even as the Lunar New Year festivities are expected to encourage major travel, prompting many countries to introduce mandatory testing for Chinese travellers.
VALUES TO FOLLOW:
Airbus and Atos could host the first session of 2023 Paris as Les Echos reported that Airbus was considering a minority stake in Evidian, the digital and cybersecurity business arm of Atos that the IT services group will split.
A WALL STREET
The New York Stock Exchange won’t begin 2023 until Tuesday after posting its first annual decline since 2018 and its steepest one-year decline since the 2008 financial crisis.
On Friday, the Dow Jones index lost 0.22% to 33,147.25 points, after a decline of 8.9% over the whole of 2022.
The broader S&P-500 lost 0.25% to 3,839.50 points. It fell 19.4% last year.
For its part, the Nasdaq Composite fell 0.11% to 10,466.48 points, posting a fall of 33.1% over the year as a whole, while growth stocks, very represented in the technology index, suffered from the monetary tightening.
IN ASIA
Only the Soul Exchange was open on Monday in Asia, the Kospi index having fallen by 0.48% with the decline in values linked to tourism, the South Korean authorities having announced a compulsory test for travelers from China. Manufacturers of electric cars, such as Hyundai Motor and Kia Corp, on the other hand, benefited from more positive prospects in the United States.
In 2022, the Kospi lost more than 25% while Tokyo, the Nikkei index, which will not open until Wednesday, lost more than 9%.
In China, the CSI 300 index lost 21.6% last year, its worst annual performance since 2019, while the Hong Kong Stock Exchange lost 15.4%, its worst year since 2012.
EXCHANGES/RATES
Trading is restricted in the bond and currency markets. The euro fell slightly against the dollar after losing more than 5% against the greenback last year.
Note that Croatia became the 20th member of the euro zone on Sunday, nearly ten years after its entry into the European Union (EU).
NO ECONOMIC INDICATORS THE AGENDA FOR MONDAY JANUARY 2 (Report Blandine Hnault, told by Matthieu Protard)