(New York) Global markets failed to rebound on Monday after a sluggish week as they continued to worry about interest rates and bleak growth prospects.
The Wall Street Stock Exchange, hesitant in session, finally ended in the red, weighed down by technology: the Dow Jones lost 0.04%, the S&P 500 fell 0.45% and the NASDAQ lost 1.16 %.
In Europe, London and Frankfurt ended down 0.11%, while Paris gained 0.29% and Milan 0.12%.
Between a less dynamic activity indicator and more aggressive central bankers’ speeches, the markets are caught in a “scissors effect”, observed Alexandre Baradez, analyst at IG France.
The only indicator expected on Monday, the IFO barometer of the morale of entrepreneurs in Germany in June, continued to fall, illustrating the recession that is taking hold in Europe’s largest economy.
“There are signs that central bank action is finally cooling the economy in Europe, while activity has also slowed in the United States, but less dramatically,” recalled Art Hogan of B. Riley Wealth Management.
Investors also continue to remember the decisions and comments of central banks around the world over the past 15 days.
US Federal Reserve (Fed) Chairman Jerome Powell warned last week that further rate hikes were expected this year to try to contain inflation, while several other central banks in Europe surprised the markets with more aggressive monetary tightening than expected.
The European Central Bank (ECB) kicked off its annual forum on Monday, to be held until Wednesday in Sintra, Portugal, on the theme of economic stability in the face of high inflation.
In the bond market, yields on 10-year government bonds, the benchmark maturity, were down slightly in Europe and the United States.
The failed rebellion in Russia, led over the weekend by the leader of the Russian paramilitary group Wagner, has “not lasted long enough” to weigh on the markets, but “it is a geopolitical factor which will remain in suspense some time,” said Peter Cardillo of Spartan Capital.
Aston Martin and Lucid help each other
British luxury carmaker Aston Martin on Monday announced “a strategic supply agreement” with U.S.-Saudi electric vehicle maker Lucid to create “ultra-luxury, high-performance electric vehicles”, according to a statement.
The announcement sent the title of Aston Martin soaring, which climbed 10.70%, and supported that of Lucid (+1.46% on Wall Street).
Pfizer releases treatment
The Pfizer laboratory fell by 3.68%, while the group announced the cessation of the development of an experimental drug against obesity, Lotiglipron, which seems to have a bad effect on the liver.
Vaccine maker Moderna climbed 1.61%, benefiting from a better appreciation of the group’s valuation potential by UBS bank.
Cineworld draws the curtain for its shareholders
The bankrupt British cinema group Cineworld fell by 17.95%, after announcing an upcoming placement in receivership in the United Kingdom of its parent company, whose assets will be transferred to its creditors.
Rise in oil, euro and bitcoin
Oil prices ended slightly higher, the gains caused by the mutiny of the Wagner group in Russia remaining reduced by a sluggish economic context, unfavorable to global demand.
A barrel of Brent North Sea oil, for August delivery, rose 0.44% to $74.18.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, took 0.30% to 69.37 dollars.
The euro gleaned 0.19% to 1.0915 dollars, around 2:30 p.m. (Eastern time).
Bitcoin fell 0.53% to $30,187.