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MARKET REVIEW. Global markets were trading lower on Thursday as falling oil prices did not erase fears of accelerating inflation in Europe and the United States.
In Europe, Paris, Frankfurt and London were retreating. European markets are heading into their first quarter down since the arrival of COVID-19 in early 2020.
Wall Street was a little better oriented. Futures contracts were mixed.
In Asia, the Hong Kong Stock Exchange fell. Chinese manufacturing activity contracted in March for the first time in five months, penalized by the confinements introduced to fight against the increase in contaminations with COVID-19. The Tokyo Stock Exchange fell.
Stock indices at 7:55 a.m.
In the United States, futures contracts Dow Jones lost 26.00 points (-0.07%) to 35,091.00 points. The futures contracts S&P500 posted a decline of 0.25 points (-0.01%) to 4,595.75 points. The futures contracts Nasdaq rose by 31.50 points (+0.21%) to 15,103.00 points.
In Europe, in London, the FTSE100 fell 16.97 points (-0.22%) to 7,561.78 points. In Paris, the CAC 40 fell 40.62 points (-0.60%) to 6,700.97 points. In Frankfurt, the DAX fell 61.70 points (-0.42%) to 14,544.35 points.
In Asia, the Nikkei Tokyo fell 205.82 points (-0.73%) to 27,821.43 points. For his part, the Hang Seng Hong Kong fell 235.18 points (-1.06%) to 21,996.85 points.
On the oil side, the price per barrel of American WTI fell from US$5.68 (-5.27%) to US$102.14. The barrel of North Sea Brent fell from US$5.90 (-5.20%) to US$107.55.
Oil prices fell on Thursday, precipitated by reports that the United States plans to draw one million barrels a day from its strategic reserves, the day the oil-exporting countries (OPEC) and their partners (OPEC+) meet in Vienna.
The movement involved the oil companies like TotalEnergies (-1.46%), Eni (-0.63%) or BP (-2.04%). In the USA, Exxon (-2.12%) and western Oil (-2.78%) were expected to fall on Wall Street as well.
Rising commodity prices put pressure on inflation in Western countries. In France, it reached 4.5% over one year in March (5.1% on the European harmonized index), the highest since 1985. In Italy, the jump is 6.7%, the highest since 1991.
But the European Central Bank still ensures that inflation in the euro zone should stabilize around 2% in the medium term, according to its chief economist Philip Lane, who gave a conference Thursday in Paris.
In the United States, the PCE inflation index is expected at 8:30 a.m. Quebec time.
In addition, the markets remain tossed between “the hopes of a de-escalation in Ukraine” and the “more pessimistic comments from both camps”, say analysts at Deutsche Bank.
The Russian Foreign Ministers, Sergei Lavrov, and Ukrainian, Dmytro Kouleba, could meet “within one or two weeks”, assured Thursday their Turkish counterpart Mevlüt Cavusoglu.
Ukrainian President Volodymyr Zelensky said on Thursday that he did not believe Moscow’s promise the day before to “radically reduce” its military activity in the direction of kyiv.
The Swedish ready-to-wear giant His & Mauritz (H&M) on Thursday announced results significantly below expectations for its staggered first quarter (December-February), weighed down by the global supply crisis and the new winter wave of COVID-19. It unscrewed by 10% and dragged down other names in the sector like Inditex (-2.81%), Zara’s parent company in Madrid, and following (-3.12%) in London.
The euro lost ground (+0.57%) to 1.1096 euros per greenback.
the bitcoins was steady US$47,265.