(Photo: Getty Images)
MARKET REVIEW. Markets were trading on a cautious note midday on Monday amid concerns over the war in Ukraine and rising US bond yields.
After an indecisive first part of the session, Paris rose, Frankfurt was stable and London grabbed points. On Wall Street, futures on major indices pointed to a small higher open after modest gains on Friday.
The market follows news on the diplomatic and military aspects of the war in Ukraine on a daily basis.
Stock indices at 8:13 a.m.
In the United States, futures contracts Dow Jones rose by 14.00 points (+0.04%) to 34,732.00 points. The futures contracts S&P500 collected 8.50 points (+0.19%) at 4,547.75 points. The futures contracts Nasdaq rose by 59.25 points (+0.40%) to 14,923.00 points.
In Europe, in London, the FTSE 100 advanced by 5.62 points (+0.07%) to 7,543.52 points. In Paris, the CAC 40 rose by 11.05 points (+0.17%) to 6,695.36 points. In Frankfurt, the DAX rose by 6.09 points (+0.04%) to 14,452.57 points.
In Asia, the Nikkei Tokyo gained 70.49 points (+0.25%) to 27,736.47 points. For his part, the Hang Seng Hong Kong rose 462.76 points (+2.10%) to 22,502.31 points.
On the oil side, the price per barrel of WTI American advanced US$1.28 (+1.29%) to US$100.55. The barrel of Brent from the North Sea rose US$1.14 (+1.09%) to US$105.53.
The European Union is discussing “emergency” new sanctions against Moscow, demanded in particular by France and Germany, after the discovery of a large number of civilian bodies in the Kyiv region. Moscow has dismissed the accusations outright, slamming a “provocation” aimed at “discrediting” Russian forces in Ukraine.
“This situation weighs on the appetite for riskier assets such as equities and underlines the current state of uncertainty and volatility in these markets”, observes Pierre Veyret, analyst at ActivTrades.
In addition, the victory of the party of the Hungarian sovereigntist leader Viktor Orban at the end of legislative elections on Sunday “adds a good dose of uncertainty to the unity of the European Union concerning Russia at a critical moment”, estimates Jeffrey Halley, analyst at Oanda.
Orban on Monday received congratulations from Russian President Vladimir Putin, who expressed hope for stronger bilateral ties and also hailed the “strategic partnership” between Belgrade and Moscow, after his Serbian counterpart Aleksandar Vucic claimed a landslide presidential victory.
In the bond market, 2-year US government bond yields remained set above 10-year yields, an anomaly that means investors are concerned that the magnitude of the potential monetary tightening ahead will lead to a strong economic slowdown or even a recession. In the morning, the 2-year rate even reached the same level as the 30-year rate, whereas normally, short-term yields are lower than those for long maturities, which reflect higher degrees of risk.
Several members of the Fed will be speaking this week and investors are awaiting an indication of the strength of the next rate hike on Wednesday when the minutes of the institution’s last monetary policy meeting are published.
Oil prices were yo-yoing, caught between possible new Western sanctions against Russia and the use of strategic black gold reserves.
The euro fell 0.36% to 1.1003 US dollars in the absence of positive elements in Eastern Europe.
Twitter saw its action take off by nearly 23% on Monday in electronic trading preceding the opening of Wall Street, after Tesla boss Elon Musk took a large stake in the social network.
EasyJet shares fell 1.41% after the British company canceled more than 200 flights since the weekend, while 60 more were canceled for the day on Monday, largely due to sick employees. COVID-19.
Telecom Italy (-4.22% in Milan) announced on Saturday that it had signed a “confidentiality agreement” with the Italian Caisse des dépôts (CDP) to begin “preliminary discussions” concerning the possible merger of its network with that of Open Fiber , in which the public bank holds a 60% share.
Delivery hero (+9.71%) announced on Monday that it had contracted more than 1.4 billion euros in credit facilities in order to “strengthen the company’s liquidity in the long term”, an operation which reassures investors, just like the group’s assertion that it will make a first operating profit “from 2023”.