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OF Morning Report

02/10/2024
Source : ORISHAS-FINANCE
Categories: General Information

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Equity markets are expected to rise slightly, with tensions in the Middle East monitored. The Eurostoxx 50 opened at 4.954.15 points (-0.93%), the CAC 40 at 7,574.07 points (-0.81%), the DAX 40 19,213.14 points (-0.58%), the FTSE 100 at 8,276.65 points (-0.93%), the FTSE 100 at 8,276.65 points (+0.93%), the SMI at 12,086.66 points (-0.68%), the AEX at 910.13 points (-0.58%), the FTSE 100 at 8,276.65 points (+0.93%), the SMI at 12,086.66 points (-0.68%), the AEX at 910.13 points (-0.58%), the FTSE 100 at 8,276.65 points (-0.93%), the FTSE 100 at 8,276.65 points (+0.93%), the SMI at 12,08+0.00%), the BEL 20 at 4.327.56 points (+0.65%), the IBEX 35 at 11,673.50 points (-1.72%), the DJIA at 42,156.97 points (-0.41%), the Nasdaq at 17,910.36 points (+0.41%), the Nasdaq at 17,910.36 points (-1.53%), the S&P 500 at 5,708, 75 points (-0.93%), and the Nikkei 225 at 37,920.02

points (-1.89%).

As for exchange rates, the change from the close indicates that in New York, the EUR/USD is at 1.1068 (+0.00%), the EUR/JPY at 159.25 (+0.22%), and the USD/JPY at 143.89 (+0.23%), the EUR/JPY is at 159.25 (+0.22%), and the USD/JPY at 143.89 (+0.23%).


Statistics on the state budget situation in August will be released at 8:45am.

On the business side, the real estate company specializing in logistics platforms Argan very slightly raised its business prospects for 2024 on Tuesday evening, after recording double-digit growth in its rental income to the third ; 2nd quarter. TotalEnergies is holding an investor day on Wednesday dedicated to its strategy and prospects

.


While the attention of investors remains focused on the escalation of tensions in the Middle East, European equity markets are expected to open slightly higher on Wednesday, following their sharp fall on Tuesday. At around 7:30am, the CAC 40 futures contract took 16.3 points, or 0.2%, according to data from broker IG. The one on the DAX 40 rose by 10.9 points, or 0.1%, and the one on the FTSE 100 rose by 14.8

points, or 0.2%.

Iran fired around 200 missiles at Israel on Tuesday, sending oil prices soaring and causing a sharp downturn in equity markets.

Mainland China Stock Exchanges are still closed this holiday week in the country. At the end of trading in Tokyo, the Nikkei 225 index lost 1.9% in Asia, while the Hang Seng Index jumped 6% on the Hong Kong Stock Exchange, which reopened

on Wednesday after a holiday.


This morning, US Treasury bond yields rose slightly. After Iran's missile attack on Israel, which caused the 10-year yield to fall for the second time in the last three sessions, investors on Tuesday turned to the security of American government bonds. Around 7:10 a.m., the 10-year loan rate rose by 0.1 basis point, to 3.738%. That of the two-year stock rose 0.2 basis points, to 3.617%

.

The euro is unchanged against the dollar, but is appreciating against the yen, like the greenback, this morning. The market is counting on a short-term conflict between Iran and Israel, which is weighing on the yen, a safe haven currency. Philip Wee, a currency strategist at DGS Group Research, said that while Israel has promised to respond to Iran's missile attack, investors hope that the hostilities between the two countries will not lead to a direct military clash that could

engulf the entire Middle East.


Due to growing tensions in the Middle East, oil prices rose on Wednesday morning. According to analysts at ANZ Research, the direct intervention of Iran, a member of the Organization of Petroleum Exporting Countries (OPEC), reinforces the likelihood of disruptions in the supply of black gold

.

Around 7:20 a.m., the December Brent contract listed in London gained 1.27 dollars, to 74.83 dollars per barrel. The November contract for soft light crude (WTI) listed on Nymex rose 1.36 dollars to 71.19 dollars per barrel. For analysts, “oil prices will rise sustainably if Israel responds to this attack by launching its own offensive against [Iran's] armed forces, infrastructure or oil industry.”

Stewart Glickman, deputy director of research at CFRA Research, said that Iran produces about 3.2 million barrels of crude per day, of which probably about 50% is exported, so that “if Israel destroys some of Iran's capabilities, markets will be... Troliers will have to deal with reduced excess capacity on

the market.

OPEC and its allies (OPEC+) are expected to implement a plan to start removing some production cuts in December.

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