Paris (awp/afp) – Investors are carefully following the surge in the dollar on the financial markets on Thursday, driven by the return of Donald Trump to the White House, while the world stock markets are moving upwards.
Around 1:00 p.m. GMT, the European stock markets were clearly moving in the green: Paris gained 1.17%, Frankfurt 1.47% and London 0.53%.
On Wall Street, the indices should open close to equilibrium after the pronounced movements of last week. In pre-session contracts, the Dow Jones gained 0.22%, the Nasdaq +0.02% and the S&P 500 +0.09%.
On the session’s agenda, investors will look to the United States for the PPI producer price index 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.
Furthermore, “while investors are becoming more and more confident about a reduction in key rates in December, the US dollar has continued to rise”, comments Jim Reid, economist at Deutsche Bank.
Around 1:00 p.m. GMT, the American currency appreciated by 0.27% against the common European currency, to 1.0535 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”, comments William Gerlach, head of managing international accounts at iBanFirst.
“The rise in the dollar is causing tension on all asset classes,” notes Christopher Dembik, head of investment at Pictet AM France.
Bitcoin continues its rise
The largest cryptocurrency by capitalization was trading at $91,253.45 around 1:00 p.m. GMT, moderating its gains somewhat after briefly exceeding $93,000 the day before.
“The return of Donald Trump to the White House and the feeling that his administration will be beneficial for cryptoassets helped bitcoin stabilize above $90,000,” underlines Patrick Munnelly, analyst at Tickmill Group.
The president-elect, who will take office in January, has promised to make the United States “the cryptocurrency capital of the world” by drastically easing the regulatory environment. He also mentioned the establishment of a strategic national reserve of bitcoins.
Back to basics for Burberry
The British luxury group Burberry will refocus on its historic products, such as its famous trench coat, in the hope of extricating itself from difficulties, a strategy which seems approved by the market, despite the disastrous results presented on Thursday.
This refocusing was welcomed by investors, with the group’s share price soaring 21.33% around 1:00 p.m. GMT on the London Stock Exchange.
Swiss Life perd du terrain
The Swiss insurer Swiss Life on Thursday revealed better than expected premiums over nine months thanks to its life insurance activities in France, but remains cautious on one of its financial objectives given the evolution of real estate in France and Germany.
Its results are considered “good”, according to Simon Foessmeier, analyst at Vontobel. But more was needed “to move the needle” on the market, given the high valuation of the stock on the stock market.
The group’s stock lost 1.36% on Thursday around 1:00 p.m. GMT on the Swiss Stock Exchange. Since January, however, it has appreciated by around 22%.
Ombres south SMA Solar
The solar inverter manufacturer SMA Solar is plummeting (-15.70% in Frankfurt around 1:00 p.m. GMT), after once again lowering its forecasts for the current year, after a first correction in June.
Sluggish oil
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 1:00 p.m. GMT, a barrel of Brent from the North Sea was trading at $72.70 (+0.42%), its American equivalent West Texas Intermediate (WTI) at $68.84 (+0.41%). .
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