(New York) World stock markets traded within tight margins Monday, in the absence of any indicator or major news, with inflation and its consequences still in the background.
Wall Street ended without direction, with a Dow Jones down very slightly by 0.04%, the NASDAQ index, with a strong technological flavor, also down 0.04% and the extended S&P 500 index in equilibrium.
On the other hand, in Europe, the indices remained in the green: with Paris in particular up 0.53%, exceeding 7100 points. Frankfurt took 0.34%, Milan 0.49% and London 0.05%.
“Investors are apparently comfortable with the idea of modest key rate hikes” from central banks in order to fight inflation in the United States, Europe, or China, analyzes Craig Erlam, d ‘Oanda.
The president of the European Central Bank Christine Lagarde considered it premature to speculate on the evolution of the key rates in 2023, reaffirming Monday before the European Parliament that, until then, they would very probably not be raised.
However, “the political and social pressure is not likely to be extinguished anytime soon,” said Wilfrid Galand, of Montpensier Finance.
On the bond market, rates recovered: the US 10-year interest rate rose to 1.62%, against 1.57% at the start of the day.
Bank of England (BoE) Governor Andrew Bailey admitted that UK inflation, which hit 3.1% year on year in September, made him “very uncomfortable”, and no he did not rule out a rate hike in December.
In addition, the markets are betting heavily on the virtual meeting to be held Monday between US President Joe Biden and his Chinese counterpart Xi Jinping, at a time when Beijing and Washington clash on a series of subjects, from trade to human rights in through China’s regional ambitions.
Shell simplifies its structure
The Anglo-Dutch hydrocarbon giant Royal Dutch Shell announced on Monday that it wanted to transfer its headquarters and tax residence from the Netherlands to the United Kingdom, a decision criticized by the Dutch government. The stock took 2.14% to 1,676 pence in London.
Cineworld delights with James Bond
The action of the cinema group jumped 6.55% to 67.00 pence after publishing results showing that recent blockbusters, including the latest James Bond, had boosted sales beyond the level before COVID-19.
Airbus and Boeing take orders
The Airbus share rose 1.69% to 114.04 euros in Paris the day after the announcement of a grouped order for 255 A321 single-aisle aircraft by four companies at the opening of the Dubai air show. On Monday, the American lessor Air Lease Corporation (ALC) signed a letter of intent to purchase 111 Airbus of all types, including the first examples of the future cargo version of its long-haul A350.
In the United States, Boeing was up 5.49% to $ 233.09 having received several orders for cargo planes.
Steel melts
Steel-related companies lost ground, as Japanese and US officials held high-level trade talks in Tokyo. Washington has said it is ready to discuss a reduction in its tariffs on steel and aluminum imposed under President Donald Trump.
Aperam lost 4.57% to 46.55 euros and ArcelorMittal finished red lantern of the CAC 40 (-2.59% to 26.89 euros).
In the United States, the producer of iron ore pellets Cleveland-Cliffs fell (-2.60%), as did the steel group US Steel (-2.54%).
On the oil, euro and bitcoin side
Oil prices, initially declining with fears of a use of their strategic crude reserves by the United States, stabilized on Monday in the second part of the session to end on a mixed note.
The price of a barrel of Brent from the North Sea for delivery in January fell 0.14% to 82.05 dollars.
In New York, a barrel of West Texas Intermediate (WTI) for the month of December rose 0.11% to $ 80.88.
The euro fell again sharply against the greenback (-0.66%), to 1.1369 dollars.
Bitcoin was down 0.67% to $ 63,934.