Today’s Stock Exchanges, December 7th. Price lists barely moved on mixed signals from China. US banks see tough times for the economy
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MILAN – An interim session has been announced for the European stock exchanges, after the negative closure of Wall Street last night and the ups and downs of Asia. Investors are digesting the mixed indications from China: on the one hand, the constraints linked to the containment of Covid are still easing. On the other hand, however, there is the sharp slowdown for exports (-8.7%) in November, the worst figure since the outbreak of the pandemic in February 2020.
And in the meantime they remain focused on understanding how it will move Fed in the next months. Pessimism filters through from the big American investment banks, which see the global economic prospects as black. As noted by the Bloombergthe overview is not very optimistic: David Salomon of Goldman Sachs he warned of the risk of cutting jobs and wages on the prospect of a troubled period ahead. BofA is slowing hiring seeing an economic contraction upon us e Morgan Stanley it is reducing its global workforce. Jamie Dimon, head of JPMorgan, instead he sees a “soft to hard” recession likely to hit next year.
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Surprise thud of Chinese exports
Tokyo loses 0.7%, Europe stable
Futures contracts stable at the start of the day on the main European stock exchanges. In Frankfurt, the future on the Dax marks a marginal +0.01%, while in London, the contract on the Ftse 100 is unchanged.
Weak closure for the Tokyo stock exchange, however, influenced by the decline in Wall Street where concerns have increased that the Federal Reserve will maintain an aggressive policy on interest rates. The Nikkei 225 index finished with a -0.72% to 27,686.40 points, while the Topix index fell by 0.10% to 1,948.31 points.
Surprise thud of Chinese exports
China ends November with a trade surplus of $69.84 billion, about 10 less than analysts’ forecasts, discounting weakening external demand and anti-Covid lockdowns on the domestic front that have hit domestic consumption . According to data released by Chinese Customs, exports recorded an annual drop of 8.7% (against estimates of -3.5%), while imports recorded a 10.6% (against -6%) .
German industry held back in November, but better than expected
Industrial production in Germany recorded a monthly contraction of 0.1% in November according to the seasonally adjusted data released by Destatis. The change on an annual basis is equal to zero. The figure is better than the estimates which predicted a slide of 0.7 per cent in November.
The Fed pushes the dollar higher
Dollar up on all major currencies on the currency markets, after renewed fears of an aggressive Fed policy on interest rates. The greenback gained about 0.2% against the euro, which fell to 1.0450, and 0.4% against the yen to 137.68. Progress also on the pound which drops to 1.2111 dollars. Euro up against the yen to 143.82.
Four closures down for Wall Street
Fourth consecutive session down on Wall Street yesterday as fears of an upcoming recession mount. Investors fear that the Federal Reserve may decide to keep the pace of interest rate hikes constant to curb inflation, hurting the economy. The decline in treasury yields was not enough to give relief to equities: the eleven sectors on the S&P 500 all closed down, except for utilities (+0.66%); the worst was energy, which lost 2.65%. The index was down 1.44%, the Dow Jones lost 1.03% and the Nasdaq 2%.
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