OF Morning Newsletter : Orishas-finance

Version Française

OF Morning Newsletter

21/08/2023

Source : ORISHAS FINANCE

Categories: General Information

imprimer

Enjoy a simplified experience

Find all the economic and financial information on our Orishas Direct application to download on Play Store

At the opening, European equity markets should hesitate. The Eurostoxx 50 opens at 4,212.95 points (-0.35%), the CAC 40 at 7,164.11 points (-0.38%), the DAX 40 at 15,574.26 points (-0.65%), the FTSE 100 at 7,262.43 points (-0.65%), the SMI at 10,839.06 points (-0.42%), the AEX at 735.04 points (-0.42%), the AEX at 735.04 points (-0.65%) 35%), the BEL 20 at 3,579.03 points (-1.01%), the IBEX 35 at 9,267.70 points (-0.11%), the DJIA at 34,500.66 points (+0.07%), the Nasdaq at 13,290.78 points (-0.20%), the S&P 500 at 4,369.71 points (-0.01%), and the Nikkei 225 at 31.573.01% 78 points (+0.39%)

With respect to foreign exchange rates, the change from the close indicates that in New York, EUR/USD at 1.0881 (+0.07%), EUR/JPY at 158.19 (+0.05%), and USD/JPY at 145.39 (-0.02%).

The macroeconomic agenda is empty, while there are no events on the business agenda on Monday.

At the opening on Monday, European equity markets are expected to change little. The focus this week will be on the central bankers meeting in Jackson Hole. According to data from the broker IG, the CAC 40 futures contract took 8.1 points, or 0.1%, at around 7:20am. The FTSE 100 contract rose by 4.2 points, or 0.1%, and the DAX 40 contract increased by 6 points, or 0.04%

After a difficult week marked by interest rates rising to their highest level since 2007 and renewed concerns about the situation in the Chinese real estate sector, the New York Stock Exchange had a mixed session on Friday. The Nasdaq fell 2.6% for the week as a whole. The DJIA lost 2.2%, the S&P 500 fell 2.1%. Recently, American equity markets have suffered from uncertainties surrounding the future trajectory of the Federal Reserve's (Fed) interest rates and the strong rise in bond yields

The main stock markets moved sparsely on Monday. At the end of the session, the Nikkei index of the Tokyo Stock Exchange gained 0.4%, while the Hang Seng lost 1.4% and the Shanghai Composite 0.4%. After the central bank cut policy rates last week to support the economy, the benchmark rate for credit was lowered less than expected on Monday in China. The People's Bank of China (PBOC) reduced the one-year Loan Prime Rate (LPR) by 10 basis points, to 3.45%, and kept the five-year Loan Prime Rate at 4.2%.

Due to their shrinking profit margins, the less pronounced lowering of the LPR could be explained by the reluctance of Chinese banks to reduce credit rates.

On Monday, US Treasury bond yields were generally on the rise. According to Spartan's Peter Cardillo, Fed Chairman Jerome Powell could tell Jackson Hole that if inflation continues to slow. For its part, the US central bank may not raise interest rates in September, which would trigger lower yields

Will Compernolle, macroeconomic strategist at FHN Financial in New York, “what really stands out in the evolution of returns since July 21 is not the magnitude of their increase, but the fact that it concerns almost exclusively the long part of the curve”. The 2-year U.S. Treasury bond rate rose 1 basis point to 4.962%, and the 10-year bond rate rose about 3 basis points to 4.277%.

While the greenback is stable against the Japanese currency, the euro appreciated slightly against the dollar and the yen this morning. However, Bank of America forecasts that “a softer landing in the United States than in the eurozone” will continue to support the dollar. For the bank, markets were counting on “too many rate cuts, too soon,” while the Federal Reserve insists that it will keep rates high for a long time

As the market shows signs of tension and Beijing announced new measures to jump-start Chinese economic growth, crude oil futures are gaining ground on Monday. Matt Smith, Americas analyst at Kepler, says they continue to observe “a battle between supply and demand, with Opep+ reducing production at the instigation of Saudi Arabia and China's economic difficulties acting as

a counterweight.”

While “China's economic problems continue to hamper the growth of crude demand”, “Saudi Arabia continues to reduce its supply for global markets to ward off investors who are betting on the downside and to support prices.” The September contract for sweet light crude (WTI) listed on Nymex rose 63 cents, at $81.88 per barrel, and the October contract for North Sea Brent rose by 55 cents, to $85.35

Provided by AWS Translate