Mixed sentiment in the markets – 11/14/2022 at 1:54 pm

European and US equity markets returned to calm on Monday, following a jump last week, as Hong Kong welcomed Beijing’s announced housing support measures.

In Europe, Paris took 0.36%, London 0.37%, Frankfurt 0.42% and Milan 0.67% around 12:35 GMT.

The New York Stock Exchange was announced down 0.2% to 0.5% according to the futures contracts of the three major indices. The Nasdaq tech index had one of the best weekly performances of the year last week, in the wake of the publication of a slowdown in US inflation.

The data raised investors’ hopes for a slower pace of rate hikes by the US central bank, the Fed.

However, enthusiasm waned on Monday as we heard central bankers and analysts repeat that it is too early to claim victory over inflation.

Susannah Streeter, an analyst at Hargreaves Lansdown, reports that one of the Fed’s governors, Christopher Waller, warned that “fighting inflation” is “still a tough fight,” suggesting that the end of interest rate hikes may not be for. Now.

“It has always been clear that reducing inflation from 9-10% to 4-5% would be easy. Bringing it to 2% could be much more complicated and require higher rates for longer,” warns Stephen Innes, analyst at SPI. I AM.

As a result, interest rates on US government bonds rose slightly.

After collapsing last week, the dollar appreciated 0.61% against the euro, to $ 1.0285 around 12:35 GMT. The US currency strengthened against the yen and the pound.

In Asia, Hong Kong finished up 1.70% after China announced stimulus measures for the real estate sector, a major contributor to Chinese GDP, including credit support.

The country has experienced a boom in the real estate sector since 1998 and developers have developed at high speed thanks to bank loans, but faced with their colossal indebtedness, the authorities have decided to stop it from 2020.

For Nomura’s Lu Ting, these measures are “the most crucial pivot since Beijing has significantly tightened real estate financing.” This plan adds to the easing of some measures against Covid-19 announced on Friday by Beijing.

Markets are also scrutinizing the G20 statements. Wednesday will see the UK budget announcements.

Setback for the Swiss Roche

Roche’s experimental treatment for Alzheimer’s did not meet its goals in Phase III clinical trials, a new setback for this disease that caused its stock to drop 3.49% on the Zurich Stock Exchange.

Rheinmetall launches an offensive on Expal Systems

German arms manufacturer Rheinmetall (+ 5.84%) wants to expand its ammunition business by taking over the Spanish company Expal Systems. The transaction is expected to close by summer 2023. The agreed purchase price is based on a company value of 1.2 billion euros, Berenberg analysts note.

On the side of bitcoin and oil

The boss of the cryptocurrency platform Binance said he was launching a recourse fund to limit the damage caused by the failure of his rival FTX, restoring the color of bitcoin, which climbed 2.45% to $ 16,770.

The price of oil dropped around 12:35 GMT, a barrel of Brent from the North Sea for delivery in January 2023 was worth $ 95.04 (-0.99%).

A barrel of US West Texas Intermediate (WTI) for December delivery fell 1.19% to $ 87.90.

bur-jvi / mgi / spi

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