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OF Morning Newsletter

04/10/2023
Source : ORISHAS FINANCE
Categories: General Information

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After another rate hike and McCarthy's impeachment, stocks are expected to continue to fall. The Eurostoxx 50 opens at 4,095.59 points (-1.02%), the CAC 40 at 6,997.05 points (-1.01%), the DAX 40 at 15,085.21 points (-1.06%), the FTSE 100 at 7,470.16 points (-0.54%), the SMI at 10,763.37 points (-0.92%), the AEX at 719.67 points (-0.62%), the BEL 20 at 3,461.77 points (-1.36%), the IBEX 35 at 9,165.50 points (-1.65%), the DJIA at 33.002.38 points (-1.29%), the Nasdaq at 13,059.47 points (-1.87%), the S&P 500 at 4,229.45 points (-1.37%), and the Nikkei 225 at 30.37% 685.73 points (-1.77%)

.

With respect to exchange rates, the change compared to the close indicates that in New York, EUR/USD opened at 1.0469 (+0.03%), EUR/JPY at 156.21 (+0.14%), and USD/JPY at 149.25 (+0.15%).

Investors will be following the final figures for the September PMI indexes today. Yesterday evening, the Scandinavian company SAS announced that it had selected a consortium of investors composed of Air France-KLM and the Castlelake and Lind Invest funds as part of its financial restructuring plan. This consortium would invest $1.18 billion in the ailing company alongside the Danish state, including $475 million in new shares and $700 million in guaranteed convertible bonds. Seán McGirr is appointed creative director of the fashion house Alexander McQueen by the luxury group Kering.

While bond market rates have risen again and the Republican Speaker of the House of Representatives, Kevin McCarthy, was impeached overnight following the tabling of a motion of no confidence by an elected official from his own camp, the March& Eacute; s of European stocks are expected to continue falling on Wednesday in early trading. Data from the broker IG, the CAC 40 futures contract lost 19 points, or 0.3%, at 7:40am. The DAX 40 contract gave up 49 points, or 0.3%, and the FTSE 100 contract lost 15 points, or

0.2%.

Patrick McHenry, a North Carolina elected official who has been named the institution's interim president, said Republican candidates would run next Tuesday, with the goal of voting on Wednesday. In a House vote on Tuesday, 216 representatives, including eight Republicans, voted in favor of impeaching Kevin McCarthy, while 210 elected officials opposed it. The official had negotiated with the Democrats the last agreement reached last weekend in Congress to avoid a new budget paralysis, or “shutdown” in the United States. Investors fear that this situation could threaten the chances of a soft landing for the US economy as the Federal Reserve (Fed) has raised short-term rates by 525 basis points over the past year and a half to contain inflation by holding the economy back.

Wall Street closed sharply lower on Tuesday. The Dow Jones Index (DJIA) fell 1.3%, the expanded S&P 500 gave up 1.4%, and the Nasdaq Composite fell 1.9%. Investors are now waiting for the ADP survey on private sector employment in the US in September. Economists expect 160,000 jobs to be created last month, after 177,000 in August, and the ISM and PMI indices of activity in the service sector in the United States will also be monitored.

Asian markets are trading in the red today. The Shanghai Stock Exchange is still closed for the Golden Week in China. The Nikkei index lost 1.9% at the end of the session in Tokyo and the Hang Seng index on the Hong Kong Stock Exchange fell by

1%.

Yesterday, long-term U.S. Treasury bond yields hit new highs in many years. In particular, due to the resilience of the US economy, investors continue to sell these securities.


This morning, the euro rose slightly against the dollar. It deviates a bit from its 2023 lows. The single currency gained 0.1% to 1.0471 dollars at around 7:40am. For DBS, market sentiment is weakened by rising long-term bond yields

.

This morning, while investors are waiting for the Opep+ meeting, oil futures are showing little movement. According to ANZ, although the prospect of a further tightening of monetary policy by the Fed raises concerns about oil demand, the production cuts implemented by Opep+ remain the main factor influencing crude prices. ANZ believes that the recent fall in gold prices could lead the group to announce on Wednesday that it is leaving production unchanged. The November contract for sweet light crude (WTI) listed on Nymex fell 4 cents to $89.19 per barrel at around 7:30am, while the December contract for North Sea Brent lost 1 cent to

$90.91.
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