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

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MARKET REVIEW. Western markets erased part of their strong progress on Wednesday, continuing to monitor developments in the negotiations between Moscow and Kyiv, but also economic risks.

The European indices technically suffered the backlash of the day before: Paris and Frankfurt retreated, while London advanced, supported by oil stocks.

On Wall Street, futures contracts on the main indices sketched a slight decline before the opening.

Stock indices at 8:24 a.m.

In the United States, futures contracts Dow Jones retreated 132.00 points (-0.38%) to 35,058.00 points. The futures contracts S&P500 fell 20.00 points (-0.43%) to 4,605.50 points. The futures contracts Nasdaq posted a decline of 91.25 points (-0.60%) to 15,146.50 points.

In Europe, results were down. In London, the FTSE 100 increased by 3.97 points (+0.05%) to 7,541.22 points. In Paris, the CAC 40 yielded 66.06 points (-0.97%) to 6,726.10 points. In Frankfurt, the DAX lost 205.46 points (-1.39%) to 14,614.87 points.

In Asia, the Nikkei Tokyo lost 225.17 points (-0.80%) to 28,027.25 points. For his part, the Hang Seng Hong Kong gained 304.40 points (+1.39%) to 22,232.03 points.

On the oil side, the price per barrel of WTI American was up US$3.26 (+3.13%) at US$107.50. The barrel of North Sea Brent was up US$2.89 (+2.62%) at US$113.12.

The context

“The market is trying to gauge the seriousness of the peace talks between Russia and Ukraine,” said Victoria Scholar, analyst at Interactive Investor.

Talks between Russian and Ukrainian delegations in Istanbul on Tuesday did not produce anything “very promising” or “breakthrough”, the Kremlin said on Wednesday, contrasting with much more positive comments from Russian officials who took part in the negotiations.

The city of Cherniguiv, in northern Ukraine, was bombed “all night long”, the regional governor announced on Wednesday, despite Moscow’s announcement the day before of a reduction in its military activity in this area.

The improvement in risk appetite on Tuesday was accompanied by a decline in gold, the dollar and commodities (energy, metals and agriculture).

If the U.S. dollar continued to lose ground on Wednesday, oil prices were heading higher as the market remained skeptical of Moscow’s promises to drastically reduce its military operations in Kyiv and Cherniguiv in Ukraine.

The euro maintained its rise (+0.40%) against the greenback at US$1.1134 around 7:10 a.m. Quebec time, after earlier reaching US$1.1155 for one euro, at a level not seen since. on March 1.

On the statistical side, investors will closely monitor the monthly report on job creations in the private sector for March (ADP Survey), which also provides information on wage trends and their progression.

Solid figures could push the American Central Bank (Fed) to a more drastic monetary tightening than what is expected to correct inflation.

For her part, the President of the European Central Bank, Christine Lagarde, warned on Wednesday of the lasting effects of the war in Ukraine and urged European governments to invest without delay to make the Old Continent more resilient.

“The longer the war lasts, the higher the costs are likely to be,” she told a symposium in Cyprus. This is why Europe ‘needs a plan to ensure that the necessary investment is implemented quickly and in the most flexible way, by combining public and private financing’.

The influential group of economists that advises the German government on Wednesday slashed its 2022 growth forecast for Europe’s largest economy, revised from 4.6% to 1.8% due to the war in Ukraine.

Gold and silver specialist Polymetal, whose stock had collapsed with the war in Ukraine, was recovering on the London Stock Exchange, buoyed by speculation about the possible separation of its Russian activities from the new reassuring about its operations. The share price has doubled since Monday and was up another 10.6% to 375 pence by midday.

The industrial sector, the first to suffer supply cuts in the event of a halt in Russian deliveries, was in bad shape: Thyssenkrupp (-3.35%, at MDax), HeidelbergCement (-4.03%), Siemens (-2.5%) or Saint Gobain (-3.47%), Renault (-3.60%), Airbus (-2.22%).

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