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MARKET REVIEWS. Global markets were mixed Thursday morning, the day after a second dismal session on Wall Street.
Stock market indices at 7:45 a.m.
THE FTSE100 British was stable at the start of the session in Europe. THE DAX German advanced by 0.3%. THE CAC 40 French lost 0.1%.
In New York, before the markets opened, the average Dow Jones industrial stocks and the broader index S&P 500 slipped by 0.2%.
In Asia, the Nikkei 225 lost 0.3% in Tokyo. The scholarship of Shanghai increased by 0.8% and the Hang Seng by 1.1% in Hong Kong. Sydney lost 1.1% and Seoul 1.2%.
On the New York Commodity Exchange, the price of oil took 66 US cents to US$79.65 per barrel.
The context
Investors are waiting for the end of the Bank of England meeting, hoping to detect a sign towards a reduction in key rates at the next meeting in June.
For this meeting, the main key rate should remain unchanged, at 5.25%, but “attention will instead be focused on the distribution of votes” between the nine governors on the day’s decision, “on their new economic forecasts” as well as that “on what their orientations indicate regarding possible reductions in the future”, summarize the analysts at Deutsche Bank.
In Europe, Sweden and Switzerland have already made such moves and the European Central Bank is expected to follow them in June.
After several weeks of economic indicators, company results and central bank meetings, the flow of information was reduced this week, but the few data published satisfied investors.
On Thursday, investors learned that Chinese exports started to rise again in April, while imports far exceeded analysts’ expectations, according to official figures, good news for the recovery of the world’s second largest economy.
BBVA launches assault on Sabadell
Three days after the rejection of its friendly merger offer, the Spanish bank BBVA (BBVA, -6.03%) launched a hostile takeover bid on the same terms on its competitor on Thursday Sabadell (BNDSY, +3.22%)deemed “contrary to the interests” of Spain by the government which wants to try to derail it.
The bank from Catalonia has no controlling shareholder, but a multitude of shareholders not exceeding 4%, including large investment funds.
Munich Re in prime time
The reinsurer Munich Re (+0.28%) increased the volume of its premiums by 6% during the renewal of contracts in April and above all it “achieved 43% of its annual net profit objective of 5 billion euros in the first quarter”, an “exceptional feat which still denotes more of its capacity to be profitable,” notes Berenberg bank on Thursday, which recommends the stock for purchase.
Weak Arm
The microprocessor manufacturer Arm (ARM) fell 8.55% in electronic pre-market trading on Thursday, the day after the publication of its financial results, with analysts notably highlighting prospects below expectations for the next four quarters.
Oil is growing
The prices of oil recovered on Thursday, driven by the drop in crude oil stocks in the United States last week, but also by the slim hopes of a truce between Israel and Hamas.
Around 6:20 a.m., the barrel of North Sea Brent took 0.66% to 84.13 American dollars ($US) and a barrel of American WTI gained 0.77% to US$79.60.
The euro lost 0.12% against the US dollar, to US$1.0735 per euro and the pound lost 0.15% to US$1,279 per pound.
On the bond market, government interest rates rose, continuing the trend from the day before.
