Paris (awp/afp) – Investors are paying attention on Thursday to the surge in the dollar on the financial markets, which is driven by the prospect of a political program from the American president-elect perceived as inflationary.
“Investors are increasingly worried about the evolution of the dollar,” underlines John Plassard, investment specialist for Mirabaud.
Around 08:40 GMT, the American currency appreciated by 0.17% against the common European currency, to 1.0545 dollars per euro, to levels not seen for more than a year.
The surge in the dollar “reflects a market reaction to the prospect of an expansionary fiscal policy in the United States and a public deficit which could reach on average 7% of GDP under Trump’s mandate”, commented William Gerlach, responsible for of international account management at iBanFirst.
Furthermore, “the rise of the dollar is causing tension on all asset classes,” explains Christopher Dembik, head of investment at Pictet AM France.
On the equity markets in Europe, the Paris Stock Exchange gained 0.10%, Milan 0.13%, Frankfurt advanced 0.52% and London (-0.03%) oscillated around its equilibrium point.
In Asia, Tokyo lost 0.48%, and on the Chinese stock exchanges, the losses were more pronounced: Shenzhen fell significantly by 2.83%, Shanghai by 1.73% and Hong Kong by 1.96%.
Chinese markets remain clouded by the prospect of an intensification of Sino-American trade tensions, in particular due to a possible imposition of a surcharge of up to 60% on all Chinese products entering the United States.
On the session’s agenda, investors will look to the publication of the second estimate of euro zone GDP for the third quarter (at 10:00 GMT) before turning to the United States for the PPI price index at production Thursday for October at 1:30 p.m. GMT.
“This PPI index contains elements which feed the PCE inflation index”, reputed to be the most favored by the American central bank (Fed) to gauge the evolution of prices in the United States, comments Ipek Ozkardeskaya, analyst at Swissquote Bank.
Bitcoin continues its rise
The largest cryptocurrency by capitalization was trading at $91,290 around 08:40 GMT, moderating its gains somewhat after briefly exceeding $93,000 the day before.
Since Donald Trump’s victory on November 5 in the US presidential election, the value of bitcoin has increased by more than 30% and has soared from record to record.
The president-elect, who will take office in January, has promised to make the United States “the world capital of cryptocurrencies” by drastically relaxing the regulatory environment. He also mentioned the establishment of a strategic national reserve of bitcoins.
Rome cedes 15% of the Monte dei Paschi bank
The Italian Ministry of the Economy announced on Wednesday that it had placed 15% of the capital of the Monte dei Paschi di Siena (MPS) bank on the markets, i.e. double the planned sale, for an amount of approximately 1.1 billion dinars. euros.
Taking into account stronger demand than expected and a premium of 5% compared to Wednesday’s closing price, “the offer was increased from 7% to 15% of the capital”, indicated the ministry in a press release. The bank’s stock gained more than 10% in Milan.
Burberry praised
The British luxury group Burberry, in difficulty, announced that it had recorded a decline in its sales over the half-year, coupled with a net loss. Burberry sales were down 22% to 1.086 billion pounds. The group, however, did better than expected and jumped in London by more than 11%.
Oil downturn
Oil prices stabilized on Thursday, in a market worried by the rise in the dollar which makes crude purchases denominated in the American currency less attractive, while concerns about demand persist.
Around 08:40 GMT, a barrel of Brent from the North Sea was trading at $72.24 (-0.05%), its American equivalent West Texas Intermediate (WTI) at $68.38 (-0.07%). .
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