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OF Morning Newsletter

18/09/2023
Source : ORISHAS FINANCE
Categories: General Information

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European stock markets are expected to fall slightly. The Eurostoxx 50 opens at 4,295.05 points (+0.36%), the CAC 40 at 7,378.82 points (+0.96%), the DAX 40 at 15,893.53 points (+0.56%), the FTSE 100 at 7,711.38 points (+0.50%), the SMI at 11,197.72 points (+0.90%), the AEX at 741.51 points (-0.40%)), the BEL 20 at 3,712.38 points (+0.61%), the IBEX 35 at 9,549.70 points (+0.01%), the DJIA at 34.618.24 points (-0.83%), the Nasdaq at 13,708.33 points (-1.56%), the S&P 500 at 4,450.32 points (-1.22%), and the Nikkei 225 at 33.533.09 points (+1.10%

).

With respect to foreign exchange rates, the change compared to the close indicates that in New York, EUR/USD is at 1.0667 (+0.07%), EUR/JPY at 157.54 (-0.04%), and USD/JPY at 147.70 (-0.10%).

For the period 2023-2025, the Banque de France unveiled its macroeconomic projections on Monday. Societe Generale is organizing an investor day for businesses. The car manufacturer Stellantis will also be monitored, as the strike in the automotive sector in the United States continues.

The real estate company Argan, the specialist in flexible material cutting technologies Lectra and the specialized foundry X-Fab join the SBF 120 index this Monday, replacing the real estate developer Altarea, the distributor Casino and the private equity firm Antin Infrastructure Partners.


In a climate of caution in the run-up to the US Federal Reserve (Fed) monetary policy meeting, European equity markets could open slightly lower on Monday. According to data from the broker IG, the CAC 40 futures contract lost 8 points, or 0.1%, around 7:30. The FTSE 100 contract gave up 17 points, or 0.2%, and the DAX 40 contract lost 2.3 points, or

0.01%.

After two days of meetings, the Fed will announce its monetary policy decision on Wednesday evening. Although the outlook for the rest of the year is more uncertain, many operators believe that the central bank will leave its key rates unchanged. According to Marco Pirondini, head of equities for Amundi U.S., “the inflation picture is still complicated.” For the latter, “the market is beginning to understand that the Fed will have to keep interest rates high for a period of time.” extended”.

Some analysts also fear that the strike led by the United Auto Workers (UAW) union against the three major American automakers, Ford, General Motors, and Stellantis, will cause car prices to rise. After renewed interest rate tensions, Wall Street finished lower, penalized by tech stocks last night. The Dow Jones Index (DJIA) fell 0.8%, the expanded S&P 500 lost 1.2%, and the Nasdaq Composite, rich in technology stocks, fell 1.6%.
Major Asian markets fell on Monday. The Hang Seng Index on the Hong Kong Stock Exchange lost 1.1% at the end of the session, while the Shanghai Composite lost 0.1%. The Tokyo Stock Exchange is closed due to a public holiday in Japan

.


As the strike in the U.S. auto sector raises concerns about car prices, U.S. Treasury bond yields finished at their highest level since the beginning of September on Friday. Due to a holiday in Japan, U.S. Treasury bonds are not being traded this Monday in Asia. FHN Financial reported that “markets are virtually certain that the Fed will leave rates unchanged [this] week and the chances of another rate hike this year are uncertain after data released last week

.”

The highest probability of another rate hike is now for the December meeting rather than the November meeting, which is a slight change compared to the last four months, the brokerage firm said, according to federal fund futures.

This week, the euro is gaining ground against the dollar ahead of the Fed's monetary policy committee meeting. The Fed is expected to leave monetary policy unchanged at the end of this meeting, according to RBC Capital Markets. But market participants fear restrictive rate projections (“dot plot”), especially if the median forecast for the federal funds rate continues to indicate a further hike this year and if projections for 2024 suggest fewer rate cuts, adds the

financial intermediary.


Due to supply pressures and improved demand prospects, oil prices are rising this morning. The October contract for sweet light crude (WTI) listed on Nymex took 64 cents, at $91.41 per barrel, around 7:25am, and the November contract for North Sea Brent gained 52 cents, at 94.45 dollars

.
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