2023-06-05 12:38:15
(Paris) World stock markets are moving without a clear direction on Monday, pending the next decisions of the American Federal Reserve (Fed), investors hoping for a break in its monetary tightening policy.
Wall Street is heading for a contrasting open. Around 7:35 am (Eastern time), the Dow Jones futures contract took 0.06%, that of the S&P 500 0.05% while that of the NASDAQ fell 0.15%.
In Europe, around 7:35 am (Eastern time) London was up 0.49%, Frankfurt 0.09% while Paris dropped 0.13% and Milan 0.21%.
On the other hand in Asia, the Tokyo Stock Exchange broke a 33-year-old closing record, supported by the latest US employment figures published on Friday. The flagship Nikkei index jumped 2.20%, its highest level since July 1990, and the broader Topix index jumped 1.7%.
“We are again facing a good deal of uncertainty about the outlook for the US Federal Reserve (Fed) in the short term,” said analysts at Deutsche Bank.
Investors were convinced at the end of the last meeting in May that the Fed would pause on the hike in its key rates, and even lower them significantly by the end of the year, but the figures showing an activity still strong economy are changing their outlook a little.
“Much of the economic data suggests that the rate hikes so far have had little effect,” notes Michael Hewson of CMC Markets.
Thus, “339,000 new jobs were created in May, well above the 180,000 forecast by analysts,” recalls Ipek Ozkardeskaya, analyst at Swissquote Bank.
However, at the same time, wage growth has slowed, a positive sign in central banks’ fight against inflation, and the unemployment rate has risen.
In anticipation of the Fed’s meeting scheduled for June 13 and 14, macroeconomic publications should continue to capture the markets’ attention. On Monday’s agenda, shortly after the opening of the American markets, will be the publication of the ISM services activity index for May in the United States.
On the bond market, European government rates rose for the second session in a row. The US 10-year rate stands at 3.75%, compared to 3.59% on Thursday at the close and 3.69% on Friday.
Asos flies away
The British online clothing sales group Asos gained more than 8% after a press report evoking a possible takeover offer of one billion pounds (1.16 billion euros) by a Turkish subsidiary of Chinese Alibaba, Trendyol .
Commodities and Currencies
Saudi Arabia pledged on Sunday to cut oil production by one million barrels a day starting in July, following a meeting of OPEC nations and their allies. “This would bring the country’s production level down to around nine million barrels a day next month, the lowest level in years,” said John Plassard, investment specialist at Mirabaud.
After these announcements, oil rebounded. Around 7:30 a.m. (Eastern time), a barrel of Brent from the North Sea, for delivery in August, took 1.86% to 77.55 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in July, gained 2.02% to 73.19 dollars.
The dollar is losing ground: it was down 0.18% against the euro, at 1.0688 dollars for one euro, and dropped 0.57% against the pound sterling, at 1.2381 dollars for one pound .
Bitcoin fell 1.73% to $26,775.
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