Today’s Stock Exchanges, June 6th. Stalled markets, holding back oil prices
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MILAN – Stalemate on global markets, with the president of the ECB, Christine Lagarde, who has not hinted at the possibility of a pause in rate hikes by the Eurotower admitting that there is still no certainty about having reached the peak of the core inflation. The tech sector saw gains evaporate in the preceding session (the Nasdaq closed weak after a positive session led by record-breaking Apple, which however later erased the gains), while activity in the services sector remained expanding in the United States, in May, but the data disappointed expectations. Oil prices are also holding back after gains linked to Saudi Arabian production cuts. Surprise from Australia with interest rate hike above estimates to fight inflation: Aussie dollar jumps.
Positive Asian stock exchanges
Asian stocks moved higher after a slowdown in the US services sector boosted the prospect that the Fed would halt interest rate hikes at its meeting next week. Tokyo advanced by 0.72% while in China, where economic and political prospects remain very uncertain, Shanghai decreased by 0.06% and Shenzhen by 0.01%. Hong Kong did well at +0.72% and also Seoul +0.54% and Taiwan +0.15%, where TWII was also boosted by a 0.9% increase in the shares of chipmaker Tsmc after registration of a better second half of 2023 thanks to a recovery in demand for chips.
Slightly higher opening for the euro
Opening slightly up for the euro above 1.07 dollars. The single currency is traded at 1.0726 dollars (+0.12%) and 149.58 yen (+0.06%). Dollar/yen down to 139.46 (-0.09).
Wall Street, little moved futures
Wall Street futures are little moved after yesterday’s weak close in New York. Dow Jones futures are up 0.05%, S&P 500 futures are up 0.06% and Nasdaq futures are up 0.03%. Economic activity in the services sector continued to expand in the United States in May, but the data fell short of expectations. The ISM Servizi, drawn up by the Institute for Supply Management fell to 50.3 from 51.9 points in April, against the expected 52.4 points. The new orders component above all weighed negatively. Values below 50 points indicate a phase of economic contraction and the ISM Servizi has not fallen below this threshold since December.
Oil slows down the race
Oil prices down on Asian markets, with WTI futures returning below 72 dollars a barrel to 71.9 dollars (-0.28%) and those on Brent at 76.4 dollars (-0.42%) , erasing gains made after Saudi Arabia pledged to cut production by another 1 million barrels per day starting in July. The decision, taken at the OPEC+ meeting last Sunday, would bring the country’s production level to around 9 million barrels a day, the lowest in recent years. However, the new cuts may not have a significant impact as production levels in other member countries including Russia, Nigeria and Angola remained high.
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