Stock market: what moves on the markets before the opening Tuesday

(Photo: 123RF)

After the new highs reached by the S&P 500 and the Nasdaq – which benefited from the performance of Facebook – the day before, a more mixed opening was looming on the New York Stock Exchange.

The clues

Around 7:20 a.m., the index futures contract Dow Jones, which finished lower on Monday, took 0.14% to 34,213 points while the one on the S&P 500 stabilized (-0.01%) and that on the Nasdaq fell 0.08% to 14,501 points.

European stock markets remained well oriented Tuesday noon, erasing much of their losses from the day before the German inflation figures for June, even if the spread of the Delta variant remained in the background.

European markets continued their bullish momentum, London taking 0.30%, Frankfurt gaining 0.90%, Milan 0.36% while Madrid fell slightly (-0.16%).

After having started in equilibrium, the Stock Exchange Paris also increased its gains in the morning (+ 0.40%), approaching the threshold of 6,600 points.

The Stock Exchange Tokyo fell sharply on Tuesday, against a backdrop in particular of growing global fears around the Delta variant of the coronavirus, leading to the return of restrictions in many countries.

The index star Nikkei dropped 0.81% to 28,812 points and the index expanded Topix lost 0.82% to 1,949 points.

In Hong Kong the index Hang Seng fell 0.94%, and the composite indices of Shanghai (-0.92%) and Shenzhen (-0.92%) were also in the red.

The context

“European equity markets are trending upwards on Tuesday, in the wake of the records reached on Wall Street (Monday) while the session was duller in Asia due to the increase in COVID-19 cases”, summarizes Sophie Griffiths, analyst at Oanda.

“The Dax is posting the best performance in Europe as investors await German inflation figures for June,” continued Griffiths.

The market expects “a slight drop in consumer prices in June, to + 2.3% year-on-year, against + 2.5% in May. On a monthly basis, inflation is expected to rise by 0.4% against 0.5% ”last month, she said.

“The explosion of the highly contagious Delta variant in Asia and Australia has seen mobility restrictions imposed again in certain regions”, which penalizes in particular oil, whose demand could be affected, adds Ms. Griffiths.

The rapid spread of this variant, which originally appeared in India and is now wreaking havoc in Russia, is worrying investors as it imposes new measures to try to curb it.

As for indicators, consumer confidence in the United States (Conference Board) for June is also on the menu, as is a speech by the President of the European Central Bank (ECB), Christine Lagarde, in the afternoon.

On the oil side

Oil prices remained under pressure from the Delta variant, as investors also await the summit of the Organization of the Petroleum Exporting Countries (OPEC) and their allies on Thursday.

A barrel of North Sea Brent for August delivery was worth US $ 73.73, down 0.59% from Monday’s close. A barrel of WTI was also losing feathers, dropping 0.82%, to US $ 72.31.

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