Stock market: what’s happening on the markets before the opening Thursday May 16

Stock market: what’s happening on the markets before the opening Thursday May 16
Stock market: what’s happening on the markets before the opening Thursday May 16

(Photo: 123RF)

MARKET REVIEWS. The stock indices catch their breath on Thursday after new records reached the day before in Europe and on Wall Street, relieved by the slowdown in inflation in the United States.

Stock market indices at 7:45 a.m.

Paris slipped 0.4% at the start of the session in Europe. London lost less than 0.1% and Frankfurt fell by 0.3%.

On Wall Street, the three main indices of the New York Stock Exchange were heading towards a slightly higher opening according to their futures contracts, which oscillated between +0.08% and +0.12%.

In Asia, the Nikkei 225 jumped 1.4% in Tokyo. The stock market of Shanghai took 0.1% and the Hang Seng rose 1.6% in Hong Kong. Sydney advanced by 1.7% and Seoul added 0.8%.

On the New York Commodity Exchange, the price of oil rose 27 US cents to US$78.90 per barrel.

In the currency market, the Canadian dollar was trading at 73.45 US cents on Wednesday evening, compared to 73.24 US cents on Tuesday.

The context

The markets are taking a breather after celebrating the day before inflation (CPI) which slowed down a little in the United States in April, giving them confidence in future rate cuts from the American central bank (Fed).

Price growth slowed in April for the first time since January, to 3.4% year-on-year compared to 3.5% in March, according to the CPI index published by the Labor Department.

“Expectations of rate cuts in 2024 have strengthened with a market which now sees two cuts for the Fed and three for the European Central Bank,” report Natixis analysts.

After the macroeconomic publications of the day before, the market awaits Thursday “impatiently” the speeches of “three American central bankers”, comments Andreas Lipkow, independent analyst.

On the bond market, sovereign rates are stabilizing after a clear easing on Wednesday.

Siemens in decline

The German industrial group Siemens announced Thursday the sale of its subsidiary Innomotics, specializing in the manufacturing of large motors and drives, for 3.5 billion euros to the American fund KPS.

The group also indicated that it suffered a decline in its net profit in the second quarter of its 2023/2024 fiscal year, due to an accounting effect, but also a drop in sales, particularly in digital activities.

Siemens lost 4.64% in Frankfurt.

Eni sold

The Italian Ministry of the Economy announced on Wednesday that it had placed a 2.8% share of the capital of the hydrocarbon giant on the markets for an amount of 1.4 billion euros. Eni, as part of its privatization plan. Its action fell 2.13% in Milan.

Swiss Re on the rise

The Swiss reinsurance giant Swiss Re (+3.91% in Zurich) announced better than expected net profit for the first quarter, at nearly $1.1 billion, and confirmed its forecasts for the whole of 2024.

Sage punished

The British business software company Wise fell by some 10% in London, punished by investors despite a half-year profit up more than 50% and an increasing turnover, due to forecasts considered disappointing.

BT doped

The British telecommunications group BT posted an annual net profit divided by more than two, but an increase in its dividend and a savings plan caused the stock to jump 14.45% in London.

Oil and dollar stable

Oil prices were in balance, the barrel of Brent worth US$82.73 (-0.02%) and the barrel of American WTI US$78.63 (+0.00%).

In the foreign exchange market, the American dollar advanced 0.15% against the euro, to US$1.0868 per euro, after falling the day before.

THE yen fell slightly by 0.06% against the American currency to 154.79 yen per American dollar.

THE bitcoin took 0.29% to US$66,175.

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