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MARKET REVIEWS. The technology sector is at the forefront on the stock market on Thursday, in the wake of Nvidia’s results, but the rest of the rating is more measured, particularly in Europe after data on activity in May.
Stock Market Indices at 7:45 a.m.
THE FTSE100 British was stable at the start of the session in Europe. THE CAC 40 French added 0.2% and the DAX German 0.3%.
In New York, before the markets opened, the average Dow Jones industrial values was unchanged and the index expanded S&P 500 increased by 0.5%.
In Asia, the Nikkei 225 added 0.3% to close at a new high in Tokyo. The stock market of Shanghai fell by 1.3% and the Hang Seng plunged 1.7% in Hong Kong. Sydney lost 0.5% and Seoul 0.1%.
On the New York Commodity Exchange, the price of oil gained 3 US cents to US$77.60 per barrel.
In the currency market, the Canadian dollar was trading at 73.13 US cents Wednesday evening, compared to 73.27 US cents Tuesday.
The context
Main indicator in Europe on Thursday, growth in private sector activity accelerated in the euro zone in May while prices charged by businesses slowed, according to the Flash PMI published Thursday by S&P Global. The figure came out slightly higher than analysts’ expectations.
Cyrus de la Rubia, economist for Hamburg Commercial Bank (HCOB), a partner of S&P Global, sees the data collected on prices as “good news for the European Central Bank (ECB)”, which the markets expect to see key interest rates lowered at its next meeting in June.
“We were very transparent about the decision at the June meeting. And we are taking a cautious approach, which would argue in favor of a reduction of 25 basis points (…). We have not taken any decision on the number of interest rate cuts or their magnitude” for the rest of the year, declared the vice-president of the ECB, Luis de Guindos, to the Austrian daily Oberösterreichische Nachrichten.
Data on consumer confidence in Europe and other indices of manufacturing activity in the United States will also be released.
On the bond market, interest rates in European states and the United States remained stable, after their increase on Wednesday.
Nvidia ready to pounce
The American semiconductor giant Nvidia once again largely exceeded expectations for the first quarter of its staggered financial year, confirming that the momentum given by generative artificial intelligence (AI) cannot be denied.
The Santa Clara (California) group generated a net profit of $14.9 billion, more than sevenfold compared to the same period last year, according to a press release published Wednesday and particularly awaited by investors.
The stock was heading for an increase of 6.7% according to pre-session electronic trading. Its value would thus exceed 1,000 dollars, while it was only worth 120 in September 2022.
This trend benefited the entire semiconductor sector: in Tokyo, Disco Corporation climbed 7.95%, Advantest 5.36%.
In Europe, ASML took 3.25%, Infineon 1.30%, STMicroelectronics 1.02%.
Heavy fine for Mondelez
Brussels imposed a fine of 337.5 million euros on the American agri-food giant on Thursday Mondelez, owner of the Lu, Oreo, Milka and Toblerone brands, suspected of having restricted competition in the chocolate, biscuits and coffee markets. The stock fell 0.47% in pre-session trading on Wall Street.
Oil rebounds
After three sessions of decline, oil prices rose again. The barrel of Brent gained 0.78% to US$82.54 and that of American WTI 0.80% to US$78.19.
The euro rose 0.21% against the dollar to US$1.0846 per euro.
THE bitcoin gained 0.46% to US$69,730.
