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MARKET REVIEW. Western markets erased part of their strong growth on Wednesday, continuing to monitor developments in negotiations between Moscow and Kyiv, but also economic risks.
European indexes technically suffered a backlash the other day: Paris and Frankfurt retreated, while London moved forward, supported by oil stocks.
On Wall Street, futures contracts on major indices sketched a slight decline before opening.
Stock indices at 8:24 am
In the United States, futures contracts Dow Jones retreated 132.00 points (-0.38%) to 35,058.00 points. Futures contracts S & P500 dropped 20.00 points (-0.43%) to 4,605.50 points. Futures contracts Nasdaq posted a decrease of 91.25 points (-0.60%) to 15,146.50 points.
In Europe, the results are 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 said Hong Kong scored 304.40 points (+1.39%) to 22,232.03 points.
On the oil side, the price per barrel of WTI American rose US $ 3.26 (+3.13%) to US $ 107.50. The barrel of North Sea Brent rose US $ 2.89 (+2.62%) to US $ 113.12.
“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 the Russian and Ukrainian delegations in Istanbul on Tuesday did not yield anything “very promising” or “breakthrough”, the Kremlin said on Wednesday, in contrast to more positive comments from Russian officials who took part in the talks.
The city of Cherniguiv, in northern Ukraine, was bombed “all night”, the regional governor announced on Wednesday, despite Moscow’s announcement the day before a reduction in its military activity in the area.
The improvement in risk appetite on Tuesday was accompanied by a decline in gold, dollars and commodities (energy, metals and agriculture).
If the US dollar continues to lose ground on Wednesday, oil prices will head higher as the market remains 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 am Quebec time, after earlier reaching US $ 1.1155 for the euro, at a level not seen since March 1 .
On the statistical side, investors will closely monitor the monthly report on private sector job creation for March (ADP Survey), which also provides information on wage trends and their development.
Solid numbers could push the American Central Bank (Fed) into a more severe fiscal restriction than expected to correct inflation.
For her part, the President of the European Central Bank, Christine Lagarde, warned on Wednesday about the long -term effects of the war on Ukraine and urged European governments to invest without delay to make the Old Continent more stable.
“The longer the war, the higher the costs,” he said at 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, through a combination of public and private financing’.
The influential group of economists advising the German government on Wednesday lowered its 2022 growth forecast for Europe’s largest economy, which was changed from 4.6% to 1.8% due to the war in Ukraine.
Gold and silver specialist Polymetal, whose stock has fallen in the war in Ukraine, is healing on the London Stock Exchange, fueled by speculation about the possible separation of its activities in Russia from the new assurance of operations its. The share price has doubled since Monday and rose another 10.6% to 375 pence at noon.
The industrial sector, the first to experience supply cuts in the event of a halt in Russian deliveries, is in bad shape: Thyssenkrupp (-3.35%, in MDax), Heidelberg cement (-4.03%), Siemens (-2.5%) o Saint Gobain (-3.47%), Renault (-3.60%), Airbus (-2.22%).