MARKET REVIEWS. The presentation of a new British budget and the expectation of several macroeconomic indicators in the United States pulled the markets down Thursday at midday, on the eve of a communication from an official of the American Central Bank.
Stock market indices at 8 a.m.
The futures contracts Dow Jones fell by 260.00 points (-0.77%) to 33,331.00 points. The futures contracts S&P 500 fell 35.00 points (-0.88%) to 3,933.50 points. The futures contracts Nasdaq fell by 105.50 points (-0.90%) to 11,634.00 points.
In London, the FTSE 100 fell by 40.36 points (-0.55%) to 7,310.83 points. In Paris, the CAC 40 fell 56.59 points (-0.86%) to 6,550.63 points. In Frankfurt, the DAX posted a decline of 34.85 points (-0.24%) to 14,199.18 points.
In Asia, the Nikkei Tokyo lost 97.73 points (-0.35%) to 27,930.57 points. For his part, the Hang Seng Hong Kong fell 210.82 points (-1.15%) to 18,045.66 points.
On the oil side, the price per barrel of American WTI retreated US$1.74 (-2.03%) to US$83.85. The barrel of North Sea Brent was down US$1.45 (-1.56%) to US$91.41.
Macro news is busy Thursday, “Traders await data on building permits, initial jobless claims and the Central Bank of Philadelphia manufacturing index later in the afternoon, as well as speeches by officials of the Fed’s Monetary Policy Committee (FOMC), monetary policy remaining one of the main market drivers for equity investors,” summarizes Ricardo Evangelista, analyst at ActivTrades.
In Europe, the publication of the British budget did not reassure investors.
The United Kingdom has now entered “a recession” and its Gross Domestic Product will fall by 1.4% in 2023, British Finance Minister Jeremy Hunt announced on Thursday, along with 55 billion pounds of spending cuts and of tax increases.
London will increase its exceptional tax on the profits of energy giants from 25% to 35%, and will extend it for three years, until 2028 and Jeremy Hunt also announced “a new temporary tax of 45% on electricity producers “.
The price of natural gas, the Dutch TTF futures contract, a benchmark in Europe, fell 14.06% to 107.94 euros per megawatt hour (MWh) around 12:35 GMT.
The pound was down 0.83% against the dollar at 1.1816 US dollars to the pound around 12:35 GMT.
On the bond market, the British rate was at +8.2% around 12:50 GMT.
In the wake of the British government’s announcements, energy stocks were trending lower on European markets.
In London, Shell fell by 0.51%, while in Paris, TotalEnergies lost 1.29%, Engie 0.42%, and EDF 0.17%. In Milan, the Italian hydrocarbon giant ENI fell by 1.32%, in Madrid, Iberdrola lost 0.52%.
In a falling market, British luxury group Burberry gained 2.25% around 12:45 GMT, to 2,048.00 pence after the publication of sharply higher results for its delayed first half, thanks to the post-pandemic recovery in Europe and despite the difficulties linked to Covid in China.
The British stood out from its French competitors, L’Oréal lost 0.75% and LVMH 0.20%.
Bouygues and Siemens on the results grill The Bouygues group saw its net profit fall by 33% over one year in the nine months of 2022 due to non-recurring transactions, but confirmed its cautious financial objectives for the year. The action was down more than 6% in Paris around 12:40 GMT.
The German industrial giant Siemens also saw its annual net profit 2021/2022 (financial year ended September 30) fall by a third, to 4.4 billion euros, due to an accounting depreciation. After jumping more than 7% in early trading, the stock price was down 0.19%.