MARKET REVIEWS. Recession fears weighed on the bond market on Friday, while the expectation of US employment figures froze global stock markets.
The New York Stock Exchange was announced stable, according to the futures contracts of the three main indices.
Paris, for its part, was down 0.41%, weighed down by luxury stocks which are falling in the face of Sino-American tensions.
Asian stocks ended higher and Taipei climbed more than 2% on easing fears of a conflict between Taiwan and China.
Stock indices at 8 a.m.
The futures contracts Dow Jones rose by 47.00 points (+0.14%) to 32,728.00 points.
The futures contracts S&P 500 collected 2.00 points (+0.05%) at 4,154.25 points.
The futures contracts Nasdaq fell by 3.50 points (-0.03%) to 13,323.50 points.
In London, the FTSE 100 decreased by 7.25 points (-0.10%) to 7,440.81 points.
In Paris, the CAC 40 yielded 28.07 points (-0.43%) to 6,485.32 points.
In Frankfurt, the DAX posted an increase of 5.83 points (+0.04%) to 13,668.51 points.
In Asia, the Nikkei de Tokyo gained 243.67 points (+0.87%) to 28,175.87 points.
For his part, the Hang Seng de Hong Kong rose 27.90 points (+0.14%) to 20,201.94 points.
On the oil side, the price of barrel of US WTI decreased by US$0.54 (-0.61%) to US$88.00.
The barrel of North Sea Brent decreased by US$0.41 (-0.44%) to US$93.71.
In the bond market, macroeconomic fears are at their highest. The two-year US debt rate has been higher than the equivalent 10-year rate for several weeks – a rare occurrence and considered a harbinger of a recession. The magnitude of the gap in favor of the two-year rate even reached a record high since 2000 on Thursday.
“Bond markets are ignoring central bank tightening and focusing more on an impending economic slowdown and recession,” says CMC Markets analyst Michael Hewson.
The number of job creations and the unemployment rate for the United States in July will be released at 8:30 am. “A drop from 372,000 (in June, editor’s note) to 250,000 in job creation is widely expected,” predicts Pierre Veyret, an analyst at ActivTrades.
These figures will be scrutinized by investors who are trying to anticipate the next measures of the American central bank, the Fed. They had detected a change in tone in the speech of the chairman of the Fed last week and are now hoping for a slowdown in the rate hike of the monetary institution.
While some data “suggests that employment and inflation have slowed in parts of the economy,” it’s not yet certain for markets that that’s enough for the Fed to change course, Stephen Innes said. analyst at SPI Asset management.
A good omen for inflation, oil prices have fallen by more than 9% since the start of the week, the price of a US barrel of WTI has even fallen back below the 90 US dollar mark, to its level before the Russian invasion of Ukraine.
“The recent drop in oil prices (…) has contributed to market perception that inflation is likely to peak soon, reducing pressure on the Fed to raise rates as aggressive,” said National Australia Bank’s Rodrigo Catril.
Around 7:40 am, prices stagnated after their fall the day before due to fears of an economic slowdown.
The barrel of Brent from the North Sea, for delivery in October, yielded 0.20% to 93.93 dollars and that of American West Texas Intermediate (WTI) for delivery in September fell 0.30% to 88.33 dollars. .
Investors are also keeping an eye on Chinese military exercises around Taiwan. In retaliation for the visit of the leader of the American deputies Nancy Pelosi in Taipei, China announced to end the cooperation with the United States on several files.
WPP at the bottom of the poster
The British advertising giant WPP (WPP) fell 7.33% in London, after announcing a small increase in net profit of 2% but margins down in the first half.
In its wake, Publicis (PUB.PA) was down 3.21%, JCDecaux (DCS) of 1.66% in Paris. And in Frankfurt Stroeer SE & Co (SAX) lost 3.47%.