(New York) World stock markets were little changed on Monday, hit by the sharper than expected fall in manufacturing activity in the New York region and suspended negotiations around raising the US debt ceiling.
Wall Street concluded slightly higher: the Dow Jones nibbled 0.14% and the S&P 500 0.30%, while the NASDAQ advanced 0.66%.
In Europe, Milan lost 0.37%, while Paris gained 0.05%, Frankfurt 0.02% and London 0.30%.
The main index of the Istanbul Stock Exchange lost 6.14% the day after the first round of the presidential elections which put incumbent President Erdogan on the ballot, but with more advance than anticipated by the polls on his main competitor. .
Markets were taken aback by a weak manufacturing activity barometer in the New York area of the United States.
After an improvement in April, activity fell under the effect in particular of a sharp drop in new orders and employment, the economy slowing down under the effect of the rises in interest rates.
“Manufacturing activity” in this highly industrialized region “plunged in May, showing that inflationary pressures persist while business conditions have deteriorated significantly,” said Edward Moya. “The Fed’s interest rate tightening cycle is starting to hit the economy hard,” he added.
In addition, the ongoing negotiations on an increase in the American debt ceiling are continuing but “caution is required given the divisions between the White House and the Republicans”, notes César Perez Ruiz, head of investments at Pictet.
President Joe Biden has confirmed he will meet with Republican officials including House Speaker Kevin McCarthy on Tuesday to try to stave off the risk of a US default.
On the bond market, interest rates on the sovereign debt of the United States and European countries rose slightly.
Currencies and politics
In Turkey, Sunday’s election did not bring out a new leader in Turkey with a second round between outgoing President Recep Tayyip Erdogan and his opponent Kemal Kiliçdaroglu.
But with Erdogan’s clear lead, “the possibility of a change in” monetary and fiscal policy “is not realistic” and “the tendency for a depreciation of the Turkish lira is likely to increase considerably”, warns Tatha Ghose , an analyst at Commerzbank.
Around 11:45 a.m. (Eastern Time), the Turkish lira remained close to its all-time low at 19.77 pounds per dollar.
As for the Thai baht, it rose against many other currencies. Compared to the greenback, taking 0.65% to 33.77 baht per dollar.
In Thailand, opposition leader Pita Limjaroenrat has claimed victory for the progressive Move Forward party, en route to forming a coalition government to take over from the generals who have been in power for almost a decade.
German giant Siemens Energy (+2.46%) said on Tuesday it expected to widen its losses this year compared to 2022, still weighed down by its Spanish subsidiary Siemens Gamesa, but its CEO Christian Bruch sees a positive future in particular in the wind sector.
On the side of oil and bitcoin
Oil prices have rebounded, awaiting the resumption of crude exports from Iraqi Kurdistan. The barrel of American WTI, with maturity in June, gained 1.42% to 75.23 dollars and that of Brent from the North Sea, for delivery in July, took 1.52% to 71.11 dollars.
European natural gas (-0.89% to 32.47 euros per megawatt hour for the Dutch TTF contract) continued its decline, weighed down by the rise in temperatures which is destroying demand. It hit a new low for nearly two years.
Bitcoin rallied 1.52% around 4:40 p.m. EST to 27,363.