(New York) Global stock markets maintained their bullish momentum on Monday despite disappointing indicators on economic activity in China and the United States, which raised hopes of less monetary tightening, while negotiations on the Iranian nuclear power weakened the oil price.
Updated yesterday at 12:08 p.m.
On Wall Street, the Dow Jones gained 0.45%, the tech-heavy NASDAQ index gained 0.62%, and the broader S&P 500 index 0.60%.
In Europe, the markets also ended timidly in the green: London gained 0.11%, Frankfurt 0.15% and Paris 0.25%. Investors in Europe were less numerous than usual, August 15 being, for example, a holiday in France, and the Milan Stock Exchange being closed.
The main movement came from the oil market: in the wrong direction after a slowdown in activity in China, prices amplified their fall, after the head of Iranian diplomacy affirmed that his country would send its “final proposals” on the nuclear file before midnight local time.
These negotiations could lead to the end of sanctions for this key member of the Organization of the Petroleum Exporting Countries.
A barrel of Brent North Sea oil for October delivery fell 3.10% to $95.10. That of American WTI for delivery in September dropped 2.91% to 89.41 dollars.
Prices fell more than 20% in two and a half months.
As for the equity markets, they overcame a series of poor macroeconomic figures.
In China, industrial production and retail sales decelerated in June, while investment slowed its course in July.
Added to this was the fall in the manufacturing activity index for the New York region, which contracted sharply to -31.3 in August, while economists expected an expansion of 5 points.
But like the US CPI price index’s weaker-than-expected reception last Wednesday, investors saw these ominous photographs of the global economy as reason for hope.
“The Fed will stop sooner [de remonter son taux directeur] if inflation slows and it is more likely to ease if the global economy tempers,” said Chris Low of FHN Financial.
“Investors are not losing their summer calm and are maintaining their positions despite not really optimal conditions,” remarks Konstantin Oldenburger, CMC Markets.
Commodities are falling
The hydrocarbon giants suffered from the fall in prices: TotalEnergies lost 2.35% and Shell 1.49% in Europe. On Wall Street, ExxonMobil (-1.79%) or Chevron (-1.90%).
The same is true for mining, with ArcelorMittal at -1.31%, Anglo American at -2.46% and US Steel at -4.44%.
Moderna’s new COVID-19 vaccine approved
Britain’s drug regulator announced Monday that it has approved a new generation of Moderna’s COVID-19 vaccine targeting the widely used Omicron variant, a world first according to the lab. The stock rose 3.27% on Wall Street.
The British laboratory AstraZeneca also rose by 2.33%, after the results of a study on its cancer drug Enhertu.
Acquisitions also supported the French laboratories Eurofins (+2.27%) and Ipsen (+2.05%).
On the currency side
The euro lost 0.97% against the greenback at 1.0159 dollars around 5 p.m.
Bitcoin fell 1.13% to $24,046.