(Paris) World stock markets are moving in the red on Tuesday, after disappointing economic indicators for the Chinese economy and rising unemployment in the United Kingdom.
In Europe, variations in stock market indices tend to be exacerbated in August due to the absence of many investors, especially since Tuesday is a public holiday in several countries. Paris lost 0.63%, London 0.90% and Frankfurt 0.50% around 3:35 a.m. (Eastern time).
In Asia, Tokyo rose 0.56% after Japanese GDP (Gross Domestic Product) growth was well above expectations in the second quarter, driven by exports.
In China, on the other hand, Shanghai lost 0.07% and Hong Kong fell 0.69% in the latest trade.
After a start to the week marked by fears over the financial health of Country Garden, one of China’s largest real estate groups, which announced the suspension of a dozen bonds as of Monday, China continues to worry investors on Tuesday.
Retail sales, the main indicator of household consumption, and industrial production came out below the expectations of analysts polled by Bloomberg.
To support activity, the Chinese central bank on Tuesday lowered a benchmark rate for medium-term loans and injected 400 billion yuan (50.4 billion euros) into the economy.
For Stephen Innes, partner at asset manager SPI AM, it is “unlikely” that this rate cut “will have a lasting effect in the absence of public spending”.
“The effects of monetary policy will most likely be neutral or may even be perceived as adverse as policymakers start to press the panic button,” he adds.
On the European side, “the week is shaping up to be an important one for the UK economy and, more importantly, for the Bank of England, which will have to determine how many rate hikes it deems necessary in the face of rising inflation. growth and record wage growth,” predicts CMC Markets analyst Michael Hewson.
The UK unemployment rate jumped to 4.2% for the three months to the end of June compared to the previous three months, a high in almost two years, and inflation figures for July will be released on Wednesday.
The pound gained 0.21% against the dollar at $1.2709 to the pound and UK government bond yields rose slightly around 3:25 a.m. EST.
The week will also be busy in the United States, where several indications on the health of American consumers are expected, starting with the July retail sales figures and the results of the American DIY chain Home Depot.
After a sharp drop in the ruble on Monday, weakened by the deterioration of Russia’s trade balance, which reached its lowest level since March 2022 at the time of the invasion of Ukraine, the Russian Central Bank announced on Tuesday that it would raise its rate manager at 12%.
This announcement boosted the ruble. Against the dollar, it climbed nearly 4% to 96.89 rubles to the dollar around 3:35 a.m. EST. Since the beginning of the year, it has lost more than 25% against the dollar and the euro.
Retail chain Marks and Spencer was up 8.5% in London around 3:40 a.m. EST, on the heels of strong quarterly sales. The group expects a significant increase in earnings and better than in previous projections.
By 3:25 a.m. EST, oil prices were flat, with the trend still uncertain given investor concerns over demand in China.
The barrel of Brent from the North Sea, for delivery in October, dropped 0.12% to 86.12 dollars and its American equivalent, the barrel of West Texas Intermediate (WTI), for delivery in September, gained 0.05% at $82.55.
The Dutch TTF futures contract, considered the European benchmark for natural gas, rose 7.74% to 37.10 euros per megawatt hour (MWh).