(New York) European markets struggled to rebound on Monday but technology boosted Wall Street after a difficult week marked by concerns over China and a sharp rise in bond yields ahead of a key meeting.
Wall Street ended mixed but the tech sector carried the NASDAQ high: the Dow Jones fell 0.11%, the S
On the Old Continent, Paris gained 0.47%, Milan 0.81%, Frankfurt 0.19%. European markets, however, released much of their gains earlier in the session and London even ended in the red (-0.06%).
In a session that was poor in indicators, the main news came from China with the cut in one of the Chinese Central Bank’s interest rates. The magnitude of the decline was less than expected by the markets and the country’s stock markets ended in the red from Shanghai (-1.24%), Shenzhen (-0.96%) to Hong Kong ( -1.82%).
“We have been waiting for a Chinese recovery plan for a month and a half. The public debt is very high so it’s complicated, especially with the level of interest rates. And you have to be careful with the currency in the event of a sharp cut in central bank rates: the country exports a lot so needs a strong currency,” explains Charles de Riedmatten, equity manager at Myria AM.
On the bond market, after a breather on Friday, interest rates started to rise again. The interest rate on US 10-year debt is at its highest since 2007: it climbed to 4.34% around 4:30 p.m. (Eastern time), against 4.26% Friday at the close. That of Germany was at 2.71% against 2.62% at the close on Friday.
Investors are eagerly awaiting the annual meeting of central bankers in Jackson Hole, US, where US Federal Reserve (Fed) Chairman Jerome Powell is due to deliver a speech on Friday.
The global real estate sector is struggling on Monday, weakened by tensions in the sector in China and the rise in interest rates which weigh on the level and price of transactions.
After Chinese stocks of companies in the sector fell, in London, giant Persimmon lost 3.82%, Taylor Wimpey 4.26%, Hammerson 4.60% and Crest Nicholson 7.84% after its results. The German Tag Immobilien fell 3.46% in Frankfurt and Vonovia 2.61%.
Electric truck maker Nikola collapsed 22.96%, suffering the impact of a costly recall of its batteries after incidents involving fire starts.
The group warned on Monday that it may not meet its vehicle delivery targets this year.
The automotive supplier Continental (5.87%) was sought after press information, confirmed with AFP, on the preparations launched for a sale of the activity producing rubber parts for automobiles, in order to increase its potential in a rapidly evolving sector.
Cybersecurity software firm Palo Alto Networks soared 14.84% after better-than-expected earnings per share. Even if its quarterly turnover was a little disappointing, it is 26% higher than last year at the same time.
Oil prices fell slightly on Monday, caught between growing market tensions and Chinese economic stimulus measures deemed insufficient, when European gas jumped again, pushed by strike threats in Australia.
A barrel of Brent from the North Sea, for delivery in October, fell 0.37% to 84.48 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in September, fell 0.65% to 80.72 dollars.
On the foreign exchange market, the euro gained 0.19% against the dollar, to 1.0894 dollars for one euro.
