MARKET REVIEWS. Markets fell in Europe and Asia on Tuesday as concerns over China’s outlook cast a shadow over regional markets.
Stock indices at 7.30 am
And Europe, Frankfurt fell by 0.5% and Paris it lost 0.3%. The FTSE 100 index London fell 0.4%.
In Asian markets, the Nikkei225 in Tokyo ended a winning streak since the new year that had taken it to its highest level in 34 years. He lost 0.8%.
Hong Kong for its part it lost 1.9%, while Shanghai gained 0.3%.
Elsewhere in Asia, the South Korean Kospi slipped 0.8% and the S&P/ASX 200 Australia it lost 1.1%.
The price of a barrel of Brent of the North Seawith delivery in March, it remained stable at US$78.16.
Its American equivalent, the barrel of West Texas Intermediate (WTI), for February delivery, fell 0.61% to US$72.24.
Context
European markets had fallen on Monday, “driven by comments from several European Central Bank policy leaders who strongly rejected the idea of interest rate cuts during the first half of this year,” comments Michael Hewson, CMC Analyst of the markets.
“Bundesbank President Joachim Nagel said that markets are too optimistic about the prospect of a rate cut and that it may have to wait until the summer for a discussion,” the analyst reports, adding that Robert Holzmann, member of the board of the ECB said “that markets are not counting on rate cuts in 2024”.
On the bond market, interest rates on the debts of European countries are stabilizing after the increase the day before. That of German government bonds stood at 2.21% compared to the closing 2.23% on Monday.
For Ipek Ozkardeskaya, analyst at Swissquote Bank, “the first quarter of this year will be characterized by the awareness that it is too early for central banks to cut interest rates, unless something really serious happens”.
Furthermore, geopolitical tensions are among the reasons that push investors to be cautious. Attacks on shipping in the Red Sea continue: An American merchant ship was hit Monday by a missile fired by the Houthis off the Yemeni city of Aden, a “response” the rebels say to attacks by American and British forces carried out on the Red Sea on Friday and Saturday over Yemen and targeting Houthi positions.
However, these tensions no longer fuel rising oil prices.
Lindt delights the markets
Swiss chocolatier Lindt & Sprüngli on Tuesday revealed better-than-expected revenue for 2023, supported by sales of pralines and rising prices to offset a jump in cocoa prices.
In Zurich the stock gained 4.24%.
Hugo Boss in the dressing room
The German clothing group Hugo Boss reported an operating profit growing by 22% in 2023, but slightly lower than analysts’ forecasts, and revenues growing by 18%, reaching the “record” figure of 4.2 billion euro, thanks to strong demand despite “a challenging global environment,” the group said in a press release on preliminary results on Tuesday.
In Frankfurt the stock fell by 5.76%.
Euro falling, bitcoin stable
The euro lost 0.31% against the U.S. dollar to $1.0916 per euro.
Bitcoin remained stable (+0.09%) at 42,724 US dollars.
2024-01-16 15:39:03
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