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OF Morning Newsletter

09/10/2023
Source : ORISHAS FINANCE
Categories: General Information

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After the Hamas attack on Israel, European stock markets are expected to fall and oil is expected to soar. The Eurostoxx 50 opens at 4,144.43 points (+1.09%), the CAC 40 at 7,060.15 points (+0.88%), the DAX 40 at 15,229.77 points (+1.06%), the FTSE 100 at 7,494.58 points (+0.58%), the SMI at 10,837.59 points (+0.50%), the AEX at 726.70 points (+0.69%), the BEL 20 at 3,490.44 points (+0.65%), the IBEX 35 at 9,235.80 points (+0.85%), the DJIA at 33,407.58 points (+0.87%), the Nasdaq at 13,431.34 points (+1.60%), the S&P 500 at 4,308.50 points (+1.18%), and the Nikkei 225 at 30,994.67 points (-0.26%) (closing on 6 October

).

In terms of exchange rates, the change from the close shows that in New York, EUR/USD at 1.055 (-0.37%), EUR/JPY at 157.41 (-0.44%), and USD/JPY at 149.20 (-0.07%).

Airbus is presenting its deliveries and orders in September, and Virbac is organizing an analysts' meeting on Monday.

As investors assess the escalation of tensions in the Middle East after the Hamas attack on Israel over the weekend, European stock markets are expected to open in the red on Monday. According to data from the broker IG, the CAC 40 futures contract lost 32 points, or 0.5%, at 7:25am. The FTSE 100 contract was stable, and the DAX 40 contract fell by 72 points, or 0.5%. Iran would have participated in planning the attack, which, if confirmed, could widen the conflict. Analysts believe that the conflict could also have an impact on negotiations aimed at normalizing relations between Saudi Arabia and Israel, while the evolution of oil prices will help gauge market concern about the

conflict.

Investors await the start of the earnings season this week while following the annual meetings of the International Monetary Fund (IMF) and the World Bank, which are being held in Marrakesh, Morocco. Asian markets fell on Monday. At the end of the session, the Shanghai Composite Index fell by 0.6%, the first in China after the golden week. Due to a typhoon alert, the opening of markets has been postponed to 8:00am (Paris time). The Tokyo Stock Exchange is closed for a public holiday.

Wall Street finished sharply in the green on Friday, despite uncertainty about interest rate trends maintained by the good employment figures published in the United States. The expanded S&P 500 rose 1.2% and the Nasdaq Composite rose 1.6%, while the Dow Jones Index (DJIA) gained 0.9% after

a volatile session.


For a holiday, the American bond market is closed this Monday. The report on non-agricultural employment in the United States in September exceeded expectations and triggered a new sell-off of US Treasury bonds. According to BNP Paribas, “the September employment report was unquestionably robust, with hires well above the upper end of the consensus forecast range [...]. The surprise was such that it was enough to call into question the long and steady deceleration in job creation on which we focused for most of the year

.”

The euro fell against the dollar on Monday, which is benefiting from renewed geopolitical tensions. According to Phillip Securities Research analysts, the Hamas attack on Israel is likely to lead to a flight to safe-haven assets, with investors closely monitoring events in the Middle East to assess the geopolitical risk for the markets, which could encourage investors to buy assets such as gold and the dollar, and possibly boost demand for U.S. Treasury bonds.

This morning, oil prices are soaring after the attack by Hamas on Israel, which in turn declared war on the Palestinian movement. Around 7:15 a.m., the November WTI contract advanced by $2.94, or 3.5%, to $85.65 per barrel, and the December North Sea Brent contract increased $2.66, or 3.1%, to $87.24. Analysts believe that oil prices are likely to rise in the short term due to the possible impact of the Israeli-Palestinian conflict on Iranian oil exports. Stephen Innes, partner at SPI Asset Management, says that “with this new flashpoint in the Middle East, oil prices will rise alongside geopolitical risks

.”
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