(Paris) The stock markets were preparing to end the week rather calmly, the day after a Thursday rich in news between announcements from the European Central Bank (ECB), company results, political crisis in Italy and economic data.
Posted at 6:43 a.m.
European places were mixed. Paris yielded 0.12%, Frankfurt 0.15%, Milan 0.07% and London won 0.16% around 3:30 a.m.
In Asia, Hong Kong gleaned 0.17% in the latest trade, Shanghai lost 0.06% and Tokyo signed its seventh straight session increase (+0.40%).
Thursday, the New York Stock Exchange ended up, encouraged by less bad than expected corporate results and indicators that support the thesis of a measured slowdown in the economy.
“Snap’s post-market results temper US futures, reducing the shine of today’s rise in Asian markets,” said Oanda analyst Jeffrey Halley.
Snap, the parent company of the Snapchat application, indeed lost more than 25% during electronic exchanges that take place between stock market sessions, due to disappointing quarterly results.
On the Old Continent, “with the approach of the weekend, and the reality of the resumption of gas deliveries, but at reduced rates, Italian policy, and the end of the decade of negative interest rates for the ECB, it is difficult to see European equities end the day on a bullish note,” predicts Jeffrey Halley.
Investors are finally digesting the announcements of the ECB, which on Thursday raised its three main rates by half a percentage point, against a quarter of a point initially planned. She also provided details on the new instrument intended to protect the most fragile states against speculative attacks on their debt.
But the activation of this tool will be subject to economic conditions. “Eligibility for this tool seems complicated”, especially for “the most needy economies” confirms Ipek Ozkardeskaya, analyst at SwissQuote.
Thus, in the midst of a political crisis in Italy, statements by ECB President Christine Lagarde did not reassure the market.
After the resignation of the head of government Mario Draghi, let go by three parties of his coalition, the Italian president Sergio Mattarella decided Thursday evening to dissolve the Parliament, causing early elections which should take place on September 25.
The euro dropped its gains on Thursday against the dollar. Around 3:30 a.m., it lost 0.67% to 1.0163 dollars.
This Friday, investors will learn about June retail sales in the UK, as inflation hit a new high of 9.4% in the same month, hurting consumer confidence.
“Platinum Jubilee celebrations likely led to a rebound in food sales due to the four-holiday weekend,” said CMC Markets analyst Michael Hewson.
Mine pale for technology
Snap’s results weighed on the tech sector. The popular youth platform gained users and its revenue grew in the second quarter, but the company said it was itself “not happy” with its performance in a note to investors.
In Paris, Worldline lost 1.29% and Dassault Systèmes 0.64%, STMicroelectronics was stable. In Frankfurt, Delivery Hero dropped 1.91%, HelloFresh 1.83% and Zalando 0.84%. In London, Deliveroo fell by 0.58%.
In electronic trading, shares of Meta, Alphabet and Twitter were down.
Uniper rescue plan
According to the German economic daily Handelsblatt, the German government should present its rescue plan for the energy company Uniper (+2.95%) on Friday. This program could include an entry into the capital of 30% in the group, accompanied by a “hybrid aid between 7 and 9 billion euros”, according to the newspaper.
On the side of oil and bitcoin
Oil prices rebounded. A barrel of Brent North Sea crude for September delivery gained 0.98% to $104.88 around 3:30 a.m.
That of West Texas Intermediate (WTI) at the same maturity rose 1.18% to 97.49 dollars.
Bitcoin took 0.69% to $23,290.