(AP Photo/Ahn Young-joon)
MARKET REVIEWS. European markets were mixed on Monday morning, as stock markets recovered some of their recent losses.
Stock market indices at 7:45 a.m.
THE CAC 40 French lost 6.2% last week, its worst performance in two years. It added 0.2% Monday morning. THE DAX German took 0.1% and the FTSE100 British lost the same margin.
In New York, before the markets opened, the average Dow Jones industrial stocks fell by 0.2% and the broader index S&P 500 of 0.1%.
It’s been a tough day in Asia. The Nikkei 225 plunged 1.8% in Tokyo. The Shanghai stock market fell 0.6% and the Hang Seng remained stable in Hong Kong. Sydney lost 0.3% and Seoul 0.5%.
On the New York Commodity Exchange, the price of oil dropped 8 US cents to US$77.97 per barrel.
The context
“In Europe, France clearly stole the show last week, after President Macron announced early elections in response to his party’s poor results in the European elections,” summarize Deutsche Bank analysts.
The dissolution of the National Assembly in France announced by the French president on June 9 was followed by a week of twists and turns and political confusion in the country, with alliances and the nomination of candidates decided urgently. The two rounds of early legislative elections will be held on June 30 and July 7.
“It is obvious that this uncertainty will accompany us at least until the second round of the election, and probably beyond,” continued Deutsche Bank analysts.
On the bond market, the gap between French (3.17%) and German (2.39%) 10-year yields continues to be scrutinized after having “crossed the 80 basis point mark” the previous week, “a record since the debt crisis which hit the euro zone more than ten years ago,” said Ipek Ozkardeskaya, analyst at Swissquote Bank.
This gap between the two rates is an indicator for measuring investor confidence in France and its long-term economic prospects.
Deutsche Bank analysts estimate that the Franco-German 10-year spread could further rise to 90 or even 100 basis points.
On the foreign exchange market, the euro fell by 0.02% against the US dollar to 1.0701 US dollars per euro. On Friday, the single currency fell to $1.0668, the lowest in a month and a half.
In Asia, the indices started the week in scattered order.
In Japan, the two main indices, the Nikkei and the Topix, hit their lowest levels in two weeks amid a widespread decline in stock markets, while investors continue to evaluate the latest policy decision by the Bank of China. Japan (BoJ),” underlines John Plassard.
“On Friday, the BOJ kept interest rates unchanged as expected, but added that it would release a plan to reduce its bond-buying program at the next policy meeting in July,” detailed John Plassard.
On the agenda for the week, the main data expected are retail sales in the United States on Tuesday, the consumer price index in the United Kingdom on Wednesday, inflation in Japan and sector activity indices private in the euro zone on Friday.
Hyundai’s Indian subsidiary listed on the stock market
The South Korean car manufacturer Hyundai (+3.92% in Seoul) has filed an IPO application for its subsidiary in India, which could constitute one of the largest operations of its kind in the country, according to several media SATURDAY.
The company plans to market 142.2 million shares, representing 17.5% of Hyundai Motor India, according to Bloomberg News, citing a draft company filing.
Adidas, a case of corruption
The German sports equipment manufacturer Adidas (-1.31% in Frankfurt) is investigating a vast affair of alleged corruption in China, estimated at several “millions of euros” by local employees of the group, the group said on Sunday. Financial Times.
Stable oil
On the oil market, the price of a barrel of Brent from the North Sea, for delivery in August, was worth 82.57 US dollars (-0.06%). Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in July, traded at 78.42 US dollars (-0.04%).
Bitcoin lost 0.39% to 66,205 US dollars.
