Markets between macroeconomic fears and good corporate results - Finance

Markets between macroeconomic fears and good corporate results – Finance

Stock markets were divided on Thursday, with central banks capturing the attention of investors, reassured by good corporate results, but on the lookout for any economic statistics.

After having rebounded sharply on Wednesday, Wall Street was showing a wait-and-see attitude before the employment figures scheduled for Friday. The Dow Jones yielded 0.21%, the Nasdaq grabbed 0.09%, the S&P 500 was stable (-0.05%) around 5:55 p.m. (Belgian time).

In Europe, Paris gained 0.64%, Frankfurt 0.55%, Milan 0.31%, Brussels 0.29% and London ended stable (+0.03%).

Aware of the risks to growth, the Bank of England nevertheless proceeded to the largest increase in its key rates since 1995, a drastic measure to counter inflation that the central bank now sees exceed 13% over one year in October. The institution has at the same time revised its growth forecasts in the United Kingdom downwards and forecasts “a contraction in production each quarter” between the last three months of 2022 and the last three of 2023.

This “similar to saying that it expects a long and painful recession throughout 2023, and the worst economic slowdown since 2008”, summarizes Michael Hewson, analyst at CMC Markets.

These prospects weighed on the pound, the bond market and oil prices.

The British currency lost 0.11% against the greenback, at 1.2136 dollars for one pound, and fell by 0.56% against the euro at 1.1881 euro. Against the dollar, the euro took him 0.50% to 1.0218 dollar.

On the rate side, European sovereign yields fell. The UK’s two-year debt rate is even higher than that of the seven-year debt, an unusual fact and judged as a harbinger of a recession by many experts.

The oil market was also marked by these fears of recession. US WTI oil fell back below $90 a barrel, the lowest since February before the Russian invasion of Ukraine.

Investors are now awaiting the US employment figures, which will be published on Friday, to anticipate the next actions of the US Central Bank (Fed).

After having rebounded sharply on Wednesday, Wall Street was showing a wait-and-see attitude before the employment figures scheduled for Friday. The Dow Jones yielded 0.21%, the Nasdaq grabbed 0.09%, the S&P 500 was stable (-0.05%) around 5:55 p.m. (Belgian time). In Europe, Paris gained 0.64%, Frankfurt 0.55%, Milan 0.31%, Brussels 0.29% and London ended stable (+0.03%). Aware of the risks to growth, the Bank of England nevertheless proceeded to the largest increase in its key rates since 1995, a drastic measure to counter inflation that the central bank now sees exceed 13% over one year in October. The institution has at the same time revised its growth forecasts in the United Kingdom downwards and forecasts “a contraction in production each quarter” between the last three months of 2022 and the last three of 2023. This “is to say that it expects a long and painful recession throughout 2023, and the worst economic slowdown since 2008”, summarizes Michael Hewson, analyst at CMC Markets. These prospects weighed on the pound, the bond market and oil prices. The British currency lost 0.11% against the greenback, at 1.2136 dollars for one pound, and fell by 0.56% against the euro at 1.1881 euro. Against the dollar, the euro took him 0.50% to 1.0218 dollar. On the rate side, European sovereign yields fell. The UK’s two-year debt rate is even higher than that of the seven-year debt, an unusual fact and judged as a harbinger of a recession by many experts. The oil market was also marked by these fears of recession. US WTI oil fell back below $90 a barrel, the lowest since February before the Russian invasion of Ukraine. Investors are now awaiting the US employment figures, which will be published on Friday, to anticipate the next actions of the US Central Bank (Fed).

.

Leave a Comment

Your email address will not be published.