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OF Morning Report

20/09/2024
Source : ORISHAS-FINANCE
Categories: General Information

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European equity markets are expected to fall after their rebound on Thursday. The Eurostoxx 50 opened at 4,943.38 points (+2.24%), the CAC 40 at 7,615.41 points (+2.29%), the DAX 40 at 19,002.38 points (+1.55%), the FTSE 100 at 8,328.72 points (+2.24%), the CAC 40 at 8,328.72 points (+0.91%), the SMI at 12,058.30 points (+0.63%), the AEX at 908.42 points (+1.55%), the FTSE 100 at 8,328.72 points (+0.91%), the SMI at 12,058.30 points (+0.63%), the AEX at 908.42 points (+1.55%), the FTSE 100 at 8,328.72 points (+0.91%), the SMI at 12,058.30 points (+0.6+1.77%), the BEL 20 at 4.253.10 points (+0.67%), the IBEX 35 at 11,778.10 points (+0.80%), the DJIA at 42,025.19 points (+1.26%), the Nasdaq at 18,013.98 points (+0.67%), the Nasdaq at 18,013.98 points (+0.67%), the Nasdaq at 18,013.98 points (+2.51%), the S&P 500 at 5,713.64 points (+1.70%), and the Nikkei 225 at 37.70%, and the Nikkei 225 at 37.70% 883,68 points (+1.96%)

.

As for exchange rates, the change from the close indicates that in New York, the EUR/USD is at 1.1165 (+0.04%), the EUR/JPY at 158.71 (-0.30%), and the USD/JPY at 142.15 (-0.34%).


While the slowdown in the European economy is causing project delays, the engineering and technology consultancy group Alten once again lowered its growth forecast for the current year on Thursday evening.

On the macroeconomic side, the industry business climate index for September will be released at 8:45am.

After rebounding on Thursday in response to the sharp cut in interest rates by the American Federal Reserve (Fed) the day before, European equity markets are expected to open lower on Friday. In particular, the technology sector and risky assets have been the subject of sustained demand from investors.
At 7:30am, the CAC 40 futures contract gave up 14.8 points, or 0.2%, according to data from broker IG. The one on the DAX 40 fell by 92 points, or 0.5%, and the one on the FTSE 100 lost

46.8 points, or 0.6%.

Asian equity markets presented a mixed landscape on Friday, following monetary policy decisions by China and Japan. The Nikkei 225 rose 2% at the end of trading in Tokyo and the Hang Seng Index gained 1.5% on the Hong Kong Stock Exchange, while the Shanghai Composite lost 0.2%. As the monetary institution looks at the effect of its recent rate hikes on the economy and markets, the Bank of Japan (BOJ) left its key interest rate unchanged on Friday. The central bank maintained its short-term interest rate at 0.25%, the level to which it raised it in July.
In March, the BOJ put an end to eight years of negative interest rates in the archipelago by raising its key rate to a range of 0% to 0.1%. The market expected the Japanese central bank to maintain the status quo on Friday. For its part, the Chinese central bank left its reference interest rates unchanged on Friday, an unexpected decision after the sharp reduction in its rates announced by the Federal Reserve (Fed) on Wednesday. The People's Bank of China maintained its one-year Loan Prime Rate (LPR) benchmark rate (LPR) at 3.35% and the five-year LPR at 3.85%. The New York Stock Exchange closed sharply higher on Thursday the day after the start of the fall in key rates in the United States, which should particularly benefit the technology sector. According to the Philly Fed Index, investors reacted well to the announcement Thursday of a drop in unemployment claims in the United States and to the unexpected recovery in manufacturing activity in the Philadelphia region.
The Dow Jones Index (DJIA) broke a new historic record by climbing 1.3% to 42,025.19 points, as did the expanded S&P 500 index, which

gained 1.7% to 5,713.64 points.


This morning, US Treasury bond rates are not changing much. Around 7:20 a.m., the 10-year US Treasury bond rate rose 0.1 basis point to 3.716%. That of the two-year stock lost 1.2 basis points, to 3.578%. According to Sanjay Raja, Deutsche Bank's chief economist for the United Kingdom, the Bank of England's decision to keep its bond portfolio down at £100 billion over the next 12 months shows that the central bank is more focused on reducing the size of its gilt portfolio than on the impact of its securities sales on the market. The economist believes that “by maintaining a stable framework of quantitative tightening, the monetary policy committee has implicitly signalled that the [BOE] accords more importance to the total stock of reduction in [the size of its gilts portfolio] than to the impact of [its]

active sales.”

This morning, the dollar fell against most major currencies, especially against the euro and the yen. According to Vishnu Varathan, head of macroeconomic research for Asia excluding Japan, at Mizuho Securities (Singapore), the general climate is one of risk taking, “the downturn in the greenback reinforcing the attractiveness of riskier assets.” For the latter, “the seductive side of a Fed that is actively orchestrating a soft landing has outweighed the fears associated with the reduction of 50 basis points in American key rates.

After their sharp rise the day before, oil prices are falling this morning. At around 7:20am, the November contract on Brent traded in London lost 22 cents, to 74.66 dollars per barrel, while the contract of the same maturity on light sweet crude (WTI) listed on Nymex fell by 20 cents, to 70.96 dollars per

barrel.
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