(Paris) Global markets failed to rebound on Monday after a sluggish week, still preoccupied with interest rates and bleak growth prospects.
Wall Street opened mixed, then dipped into the red: the Dow Jones lost 0.03%, the S
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 business sentiment in Germany in June, continued to fall, illustrating the recession 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,” recalls B. Riley’s Art Hogan WealthManagement.
Investors also continue to remember the decisions and comments of central banks around the world over the past fortnight.
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 High Inflation-Proof Economic Stability Forum on Monday, which will run until Wednesday in Sintra, Portugal.
In the bond market, yields on 10-year government bonds, the benchmark maturity, were down slightly in Europe and the United States.
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%, but also that of Lucid (8.78% on Wall Street).
The Pfizer laboratory fell by 4.48% when the group announced the end of the development of an experimental drug against obesity, Lotiglipron, which seems to have a bad effect on the liver.
The vaccine manufacturer Moderna climbed 2.18%, benefiting from a better appreciation of the group’s valuation potential by the bank UBS.
The bankrupt British cinema group Cineworld fell 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.
Oil prices were up slightly, the gains caused by the mutiny of the paramilitary group Wagner in Russia remaining reduced by a sluggish economic context, unfavorable to global demand.
By 11:30 a.m. EST, a barrel of Brent North Sea oil, for August delivery, was up 0.27% at $74.05.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, took 0.14% to 69.26 dollars.
The euro climbed 0.19% to 1.0915 dollars.
Bitcoin was up 0.22% at $30,450.