Stock market: what is happening on the markets before the opening Tuesday June 11

Stock market: what is happening on the markets before the opening Tuesday June 11
Stock market: what is happening on the markets before the opening Tuesday June 11

(AP Photo/Ahn Young-joon)

MARKET REVIEWS. European stock markets fell on Tuesday, the fear of a political upheaval in France still occupying the minds of investors, who are being all the more cautious as the meeting of the American Federal Reserve (Fed) approaches.

After attempting a rebound at the start of the session, European stock indices are once again showing a sharp decline.

Stock market indices at 8:00 a.m.

THE CAC 40 was stable at the start of the session in Paris. THE FTSE100 lost 0.3% in London and the DAX 0.1% in Frankfurt.

In New York, before the markets opened, the average Dow Jones industrial values ​​slipped 0.2% and the broader index S&P 500 of 0.1%.

There Federal Reserve will announce its latest interest rate decision on Wednesday. Virtually no one expects it to change its main interest rate at that time. On the other hand, politicians will publish their latest forecasts concerning the evolution of interest rates and the economy.

In Asia, the Nikkei 225 added 0.3% in Tokyo. The scholarship of Shanghai fell by 0.8% and the Hang Seng plunged 1% in Hong Kong. Sydney fell by 1.3% and Seoul added 0.2%.

On the New York Commodity Exchange, the price of oil was unchanged at US$77.74 per barrel.

THE Canadian dollar traded at 72.65 US cents on Monday, compared to 72.78 US cents on Friday.

The context

On the bond market, the interest rate on ten-year French government bonds increased further to reach 3.31%, the highest since the beginning of November.

And the gap between this French rate and the German equivalent, an indicator that measures investor confidence in the country, has increased and “reached its highest level of the year due to the increase in premiums fiscal and political risk,” comments Neil Wilson, Finalto analyst.

If the far-right National Rally party obtains good results in the early legislative elections, this will be synonymous with “risks of fragmentation, inertia and political compromises, drop in immigration, increase in budget deficits, protectionism”, he lists. .

On Monday, the New York Stock Exchange ended slightly higher, driven by the energy and technology sectors, which allowed the S&P 500 and Nasdaq indices to narrowly reach new records.

On Tuesday, the three main American indices should open slightly down by around 0.35% according to their futures contracts, looking ahead to the meeting of the American Federal Reserve (Fed), which begins on Tuesday.

The Fed “begins its two-day meeting today and is expected to lower its rate cut forecast for this year, due to stagnant inflation and a weak market.” employment still tight,” comments Ipek Ozkardeskaya, analyst at Swissquote Bank.

On Wednesday, just before the second day of the Fed meeting, the Consumer Price Index (CPI) for May in the United States will be released.

“Given economic data and inflation trends, there is a greater chance that the Fed will have a restrictive message than the opposite,” continues Ipek Ozkardeskaya.

As for the European Central Bank (ECB), several central bankers will speak on Tuesday. The president of the institution, Christine Lagarde, reiterated her message of caution on Monday in an interview with several European media.

Taqa abandons Naturgy

The Emirati energy giant Taqa announced on Tuesday that it had ended the negotiations initiated in mid-April for the purchase of a share of more than 40% of the Spanish energy group Naturgycurrently held by the CVC and GIP investment funds.

Taqa rose by more than 7% on the Abu Dhabi Stock Exchange, Naturgy fell by 13.03% in Madrid and CVC rose slightly (0.38%) in Amsterdam.

Oil, euro and bond rates stable

Oil prices were weakening after their surge the day before, as investors’ attention was focused on the Fed’s monetary policy meeting.

The price of a barrel of North Sea Brent for delivery in August was worth US$81.36 (-0.33%) and the barrel of West Texas Intermediate (WTI) American, expiring in July, fell 0.37% to US$77.45.

On the currency market, the euro fell (-0.33%) against the dollar, to US$1.073 0 per euro.

THE bitcoin lost 3.72% to US$67,016.

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