(Photo: Getty Images)
MARKET REVIEW. Global stock markets remained cautious on Thursday, eyes focused on Ukraine, as oil prices dropped slightly after crossing new thresholds at the start of the European session.
After their rebound on Wednesday, and the first exchanges in the same vein, the European stock market is on a downward trend.
Wall Street is heading towards an open breakeven for the Dow Jones and S&P 500, but slightly down for the tech-tinged Nasdaq, according to futures.
Stock indices at 8:08 am
In the United States, futures contracts Dow Jones lost 6.00 points (-0.02%) to 33,843.00 points. Futures contracts S & P500 dropped 3.00 points (-0.07%) to 4,378.75 points. Futures contracts Nasdaq dropped 34.00 points (-0.24%) to 14,205.25 points.
In Europe, the results are mixed. In London, the FTSE 100 dropped 50.21 points (-0.68%) to 7,379.35 points. In Paris, the CAC 40 grew by 5.96 points (+0.09%) to 6,503.98 points. In Frankfurt, the DAX posted a decrease of 97.18 points (-0.69%) to 13,902.93 points.
In Asia, the Nikkei Tokyo rose 184.24 points (+0.70%) to 26,577.27 points. For his part, the hang Seng said Hong Kong rose 123.42 points (+0.55%) to 22,467.34 points.
On the oil side, the price per barrel of WTI American reached US $ 3.34 (+3.02%) to US $ 113.94. The barrel of North Sea Brent rose US $ 3.40 (+3.01%) to US $ 116.33.
On the eighth day of the invasion of Ukraine, Russian forces, having captured their first major city, intensified their shelling in other cities, before further talks.
Tensions over oil prices continued to rise: the barrel of American WTI exceeded Thursday morning at 115 US dollars, unheard of since 2008, while the barrel of Brent was close to 120 US dollars. The increase was more measurable.
In this context, markets applauded the more accommodating stance of American Federal Reserve (Fed) chairman Jerome Powell on the institution’s next rate hike.
“We expect central banks to prioritize growth” considering the “downside risk posed by rising commodity prices,” said Vincent Juvyns of JP Morgan AM.
In the euro zone, the unemployment rate reached its historic low in January, at 6.8% of the active population, but this is happening in the context of high inflation, at 5.8% for a year in February.
Commodity prices continued to rise on Thursday, especially oil the day after the meeting of members of the Organization of the Petroleum Exporting Countries (OPEC+), which did not change the trend, despite market tension.
The executive director of the International Energy Agency (IEA) judged on Thursday that OPEC +’s wait-and-see decisions were “frustrating” and stressed that it has enough stocks to still act in the markets.
Natural gas in Europe is flowing back (-1.53% to 163 euros per megawatt hour) into the Dutch European market, which is a benchmark, after breaking a new record at nearly 200 euros around 3:30 am Quebec time.
Zinc has risen by more than US $ 4,000 per tonne, the highest since 2007.
Companies specializing in raw materials have benefited, such as glencore (+5.48%), Rio Tinto (+2.11%) at English American (+3.53%) in London, or even ArcelorMittal (+3.01%) in Paris. Technip energieswhich gave assurance to the market about its exposure to Russia, rose by 14%.
The two largest automotive groups in the world, Toyota (+0.41%) at volkswagen (-1.11%), announced Thursday the suspension of their production in Russia, due to the effects of the war in Ukraine.
German airline Lufthansa, which insisted during the presentation of its results on the fact that the war in Ukraine was a source of “huge uncertainty”, fell by 5.96%.
The bank company General (-0.88%) was assured of being able to combat the possible loss of control of its Russian subsidiary Rosbank, which represents 2.8% of its activity. Its course has changed against its competitors in the Paris market BNP Paribas (+2.03%) at Credit Agricultural (+1.53%).
The euro remained weak against the US dollar at US $ 1.1093 (-0.23%). It also held Thursday against the pound, its lowest since June 2016 and the Brexit vote, at 82.76 pence.
The bitcoin gave up slightly (-0.76%) to US $ 43,745.