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Caution on European stock markets, oil rebounds

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(Paris) Western stock markets remained on the sidelines of the sharp rise in Asian indices on Thursday, dependent on the situation in Ukraine which caused new tension on oil prices.

Europe evolved in dispersed order: after the strong gains of the previous day, Paris took 0.06%, London 0.11% but Frankfurt fell by 0.72% and Milan 0.93% around 7:40 a.m.

On Wall Street, futures for the three major indices pointed to an opening down around 0.3%. The broader S&P 500 index experienced its strongest two-session increase since April 2020 on Tuesday and Wednesday.

The war in Ukraine continues to make the markets react, according to the comments of the various stakeholders on the progress of the negotiations.

The conflict risks costing global growth one point in a year if its effects on energy and financial markets prove to be long-lasting, the OECD warned in a report on Thursday, and could push inflation up to around 2.5. additional points.

The price of a barrel of oil started to rise again on Thursday, Brent briefly exceeding the 5% gain. Around 7:05 a.m., a barrel of Brent from the North Sea for delivery in May took 4.72% to 102.72 dollars and the American WTI for April maturity rose 4.56% to 99.37 dollars.

On the equity markets, oil companies Eni (+1.69%) in Milan or BP (+1.18%) in London benefited from the trend.

The rise in commodity prices is one of the factors that has contributed to the rise in inflation in Western countries. Accelerating price increases prompted the US Federal Reserve to raise key rates for the first time since 2018 on Wednesday.

“Inflation” and “inflationary expectations will continue to weigh more heavily on Fed officials than downside risks to growth,” said Allisson Boyer, economist at Pimco.

In Asia, the Tokyo Stock Exchange closed sharply up 3.46% while in Hong Kong, the main Hang Seng index took 7.04% the day after an initial surge of 9%.

“The Chinese authorities’ promise to ease regulatory repression and support real estate and technology stocks could mark a change in trend,” said Ipek Ozkardeskaya, analyst at Swissquote.

Thyssenkrupp weakened by Ukraine

The German conglomerate fell 10.50% after warning that the consequences of the war in Ukraine made “impossible a statement on the feasibility” of its plan to make its steel division independent, even if the group “remains convinced” that this “opens up a very good prospect for the future”.

The stocks most exposed to Russia suffered: in France Renault (-4.76%) or Alstom (-3.33%) were at the back of the pack, as were the European banks Unicredit (-3.52%) and Raiffeisen (-3.41%).

Delivery is progressing

The Deliveroo meal delivery platform saw its revenue increase in 2021, but widened its deficit, due to a sharp increase in its costs. The action took 10.77%. In Frankfurt, Delivery Hero also rose by 3.11%.

Exposure to China benefits

In China, the tech heavyweights continued their meteoric rise, with Alibaba, Tencent, JD.com, XD Inc and Meituan registering increases of a magnitude of 6 to 16%.

Companies sensitive to Chinese activities such as luxury, with LVMH (+0.95%) or Hermès (+1.50%), or technology such as the semiconductor manufacturer ASML (+1.99%) benefited from the momentum of Chinese stock markets.

In Japan, this was also the case for SoftBank Group (+5.88%), the largest shareholder of Chinese Alibaba or the electronics company Omron (+6.03%).

On the currency side

On the currency market, the euro rose 0.13% against the greenback, to 1.1050 dollars.

Bitcoin fell 1.37% to $40,690.



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