2023-10-23 11:24:05
Paris (awp/afp) – High bond interest rates put pressure on stock indices on Monday, which fell while monitoring the evolution of the geopolitical situation in the Middle East.
The interest rate on the United States loan maturing in ten years exceeded the 5% threshold around 11:15 a.m., a first since November 2007.
Initially close to balance, European stock market indices fell into the red. Around 1 p.m., Paris lost 0.16%, London 0.58%, Frankfurt 0.76% and Milan 0.09%. The SMI lost 0.66% at 1:22 p.m.
On Wall Street, the three main indices are announced down 0.55% at the opening, according to their futures contracts.
In Asia, the Tokyo (-0.83%) and Shanghai (-1.47%) stock markets failed to find positive momentum. Hong Kong remained closed due to a public holiday.
In Europe, the interest rate on the 10-year German debt stood at 2.96% compared to 2.89% at Friday’s close.
“US government bonds are the essential benchmark once morest which virtually all other global assets are ultimately evaluated,” emphasizes Stephen Innes, partner at SPI Asset Management, recalling that these assets sometimes experience “high volatility and a tendency uncertain.”
The new record reached by American rates has canceled out the slight easing of geopolitical fears of investors, who are monitoring the evolution of the conflict between Israel and Hamas.
Oil prices fell slightly following the announcement of a “continuous flow” of aid to the Gaza Strip and the release of two American hostages by Hamas.
Around 12:55 p.m., a barrel of Brent from the North Sea, for delivery in December, lost 0.52% to $91.68. Its American equivalent, the barrel of West Texas Intermediate (WTI), for delivery on the same deadline, which is the first day of use as a reference contract, fell by 0.65% to 87.52 dollars.
“However, tensions remain extremely high and the risk of a serious escalation persists, given that Israel has intensified its airstrikes on Gaza and Hezbollah might drag Lebanon into war, spreading tensions throughout the region “, believes Ipek Ozkardeskaya.
The Israeli army on Sunday accused Hezbollah of seeking military escalation at the risk of dragging Lebanon into war.
Tens of thousands of soldiers have been massed by the Israeli army on the outskirts of Israel’s northern border with Lebanon, where deadly exchanges of fire have increased between the army and Hezbollah, while residents evacuate the border area on both sides.
In economic news, company results will continue to occupy investors’ minds this week, before the meeting of the European Central Bank (ECB).
The ECB is expected to leave its rates unchanged on Thursday during a remote meeting in Athens, a first following ten increases in a row, with inflation falling sharply in the euro zone leaving it with little other choice.
“It is unlikely that Christine Lagarde (the president of the ECB, editor’s note) will announce the end of the tightening of the ECB’s monetary policy. She will probably remain cautiously optimistic, believing that the ECB is approaching the end of the tunnel”, predicts Ipek Ozkardeskaya .
Philips orders drop
Philips published green results for the third quarter on Monday and raised its forecasts despite a recent negative opinion from the United States Medicines Agency (FDA) on its defective respiratory devices for people suffering from sleep problems.
Comparable order intake is down 9% compared to the same time last year. Its action lost 0.75% in Amsterdam.
On the currency side
Around 12:55 p.m., the Japanese currency fell slightly by 0.07% to 149.97 yen per dollar, it hit a low point at 150 yen per dollar earlier.
The euro gained 0.09% once morest the dollar to 1.0604 dollars per euro.
Bitcoin gained 2.37% to $30,567, its highest since July.
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