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OF Morning Report

12/09/2024
Source : ORISHAS-FINANCE
Categories: General Information

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European equity markets expected to rise before the ECB. The Eurostoxx 50 opened at 4,763.58 points (+0.35%), the CAC 40 at 7,396.83 points (-0.14%), the DAX 40 at 18,330.27 points (+0.35%), the FTSE 100 at 8,193.94 points (+0.35%), the FTSE 100 at 8,193.94 points (-0.35%), the SMI at 11,922.91 points (-0.35%), the AEX at 884.50 points (+0.35%), the FTSE 100 at 8,193.94 points (-0.35%), the SMI at 11,922.91 points (-0.35%), the AEX at 884.50 points (+0.35%), the FTSE 100 at 8,193.94 points (-0.35%), the FTSE 100 at 8,193.94 points (-0.35%), the SMI at 11,922.91 points), the BEL 20 at 4,195.75 points (-0.04%), the IBEX 35 at 11,278.90 points (+0.67%), the DJIA at 40,861.71 points (+0.31%), the Nasdaq at 17,395.53 points (-0.04%), the IBEX 35 at 11,278.90 points (+0.67%), the DJIA at 40,861.71 points (+0.31%), the Nasdaq at 17,395.53 points (+0.04%), the Nasdaq at 17,395.53 points (+2.17%), the S&P 500 at 5,554.13 points (+1.07%), and the Nikkei 225 & Aggrave; 36,747.06

points (+3.16%).

As for exchange rates, the change from the close indicates that in New York, the EUR/USD at 1.1018 (+0.04%), the EUR/JPY at 157.32 (+0.04%), the EUR/JPY at 157.32 (+0.33%), and the USD/JPY at 142.81 (+0.31%).

In a statement, the manufacturer explained that an action plan developed with dealerships had already made it possible to increase vehicle sales in the country by 21% in August in August, compared to the previous month.

This morning, before the monetary policy decision of the European Central Bank (ECB) and the publication of the producer price index in the United States, futures contracts on European equity indices are increasing. At 7:40am, the CAC 40 futures contract gained 75.5 points, or 1%, according to data from broker IG. The one on the DAX 40 was up 184.2 points, or 1% as well, while the one on the FTSE 100 was up 97.7 points

, or 1.2%.

The ECB should reduce its deposit rate by 25 basis points to 3.50%, which is unlikely to cause major fluctuations in financial markets. Investors will focus on any indications the ECB may give about future rate cuts, but analysts believe these could be limited. According to the portfolio manager at J.P. Morgan Asset Management, Joseph McConnell, “it is not certain that the ECB will cut rates this year as sharply and quickly as the market currently fits.” U.S. equity markets rose on Wednesday, supported by the tech sector.

In Asia, the Nikkei 225 rose by 3.2% at the end of trading on Thursday in Tokyo, while the Hang Seng Index rose 1.1% in Hong Kong and the Shanghai Composite jumped 0.1% in Hong Kong and the Shanghai Composite jumped 0.1%.

For producer prices to be published on Thursday across the Atlantic, economists expect an increase of 1.8% over one year in August, after an increase of 2.2% in July. Investors will also be looking at weekly unemployment claims statistics.

This morning, US government bond yields rose slightly. At around 7:30am, the 10-year US Treasury bond rate rose by 1 basis point, to 3.668%. That of the two-year stock gained around 2 basis points, to 3.666%. According to Sphia Salim, head of European interest rate strategy at BofA Global Research, any accommodative inflection in the ECB's communication on Thursday would encourage bond yields to fall across the curve, but the margin for revaluation is greater for securities with a maturity of three to five years if the ECB were to highlight more uncertainty about growth or its assessment of a neutral rate.

Like the greenback, the euro was stable against the dollar this morning, but appreciated against the yen. According to Nomura, the ECB may cut interest rates on Thursday, but this is unlikely to lead to a clear underperformance of the euro, given that a reduction of 25 basis points seems to be a given. According to Nomura analysts, ECB President Christine Lagarde will likely recall the institution's dependence on economic data and should refuse to commit to future rate cuts

.


This morning, oil futures are rising, amid supply disruptions. Analysts at ANZ Research have indicated that Hurricane Francine is threatening six refineries and ports on the American Gulf Coast, which has prompted oil companies to halt about 25% of Gulf crude production. For these, investors will be scanning the monthly report of the International Energy Agency (IEA), to be published this week, for possible signs of deterioration in demand prospects

.

Around 7:20 a.m., the November Brent contract listed in London gained 46 cents, at $71.07 per barrel, while the October contract on light sweet crude (WTI) listed on Nymex rose by 37 cents to $67.68 per barrel.

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