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Stock market: what is moving in the markets before the opening on Monday

(Photo: 123RF)

MARKET REVIEW. European stock markets rose sharply on Monday, with Wall Street also trending higher, benefiting in particular from lower oil prices.

Europe was clearly moving forward again. Wall Street was bracing for a close-to-break open, with futures for all three major indices advancing very little.

In Asia, the Tokyo Stock Exchange ended its series of nine rising sessions, while that of Shanghai was hardly impressed by the announcement of confinement by sector in this metropolis of 25 million inhabitants (+0 .07%). Hong Kong has progressed.

Stock indices at 8:29 a.m.

In the United States, futures contracts Dow Jones rose 31.00 points (+0.09%) to 34,790.00 points. The futures contracts S&P500 rose by 5.75 points (+0.13%) to 4,542.25 points. The futures contracts Nasdaq rose by 28.25 points (+0.19%) to 14,784.00 points.

In Europe, the results were green. In London, the FTSE 100 collected 53.04 points (+0.71%) at 7,536.39 points. In Paris, the CAC 40 increased by 117.75 points (+1.80%) to 6,671.43 points. In Frankfurt, the DAX increased by 284.98 points (+1.99%) to 14,590.74 points.

In Asia, the Nikkei Tokyo retreated 205.95 points (-0.73%) to 27,943.89 points. For his part, the Hang Seng Hong Kong gained 280.09 points (+1.31%) to 21,684.97 points.

On the oil side, the price per barrel of American WTI was down US$5.96 (-5.23%) at US$107.94. The barrel of North Sea Brent was down US$6.03 (-5.00%) at US$114.62.

The context

On the debt market, the five-year US interest rate rose a few hours above the 30-year rate, unheard of since 2006. The benchmark 10-year rate exceeded 2 .5% before settling to 2.47%.

In an attempt to control inflation, which is at its highest in 40 years, the US Federal Reserve raised its key rates for the first time in March and intends to continue the movement throughout the year, even if it means curbing the ‘economic activity.

Its president Jerome Powell assured during a speech last week not to see a high risk of recession next year, because the American economy is “very, very solid”.

So far, equity markets are “proving extremely resilient” despite soaring US yields, observes Tapas Strickland, an economist at National Australia Bank.

Moreover, investors remain attentive to the war in Ukraine, which has been going on for more than a month. Russia and Ukraine have so far failed to make “significant progress” in their talks aimed at ending the conflict in Ukraine, Kremlin spokesman Dmitry Peskov said on Monday.

The Russian and Ukrainian delegations are expected Monday in Istanbul (Turkey) for a new session of face-to-face discussions, which should begin on Tuesday.

Investors “hope that a peace agreement can be in sight,” said Victoria Scholar, analyst Interactive Investor.

Oil prices fell more than 5% on Monday, weighed down by partial containment in Shanghai, China’s economic capital, risking to weigh on oil demand in the country.

The British government announced on Monday that it had ceded control of the bank NatWest (+2.45%), nationalized after the 2008 financial crisis and in which he still held more than half of the capital, reducing his stake from 50.6% to 48.1%.

Almost all European banking stocks benefited from the rise in bond market rates, including Society General (+4.19%), Bank Santander (+3.14%) or even Agreement (+3.94%).

The dollar continued to strengthen, in the wake of the Fed’s restrictive policy. One US dollar traded at 0.9118 euro (+0.14%) and 124.15 yen (+1.72%), the Japanese currency being further weakened by a new accommodating measure from the Bank of Japan.

the bitcoins was back close to its highs for the year (US$47,981) with a 2.52% advance to US$47,270 around 11:50 GMT.


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