Paris (awp / afp) – World stock markets fell on Monday, weighed down by the wait before the expected hike in key rates from the US Federal Reserve, at the start of a second week of publication of corporate results.
European financial markets opened lower: Frankfurt lost 0.40% around 7:40 GMT and London 0.14%. Paris was approaching equilibrium, still losing 0.10%.
Milan fell 0.22% as Italy begins an election campaign for a snap election at the end of September, after Prime Minister Mario Draghi resigned, concluding a government crisis.
In Asia, Tokyo stalled (-0.77%) after seven consecutive sessions in the green, cooled by the decline in Wall Street at the end of last week. Shanghai fell 0.60% and Hong Kong 0.44% in the latest trade.
On Friday, the New York Stock Exchange ended down, hurt by some disappointing corporate results and poor indicators, two reminders that the economy is decelerating. The Dow Jones fell 0.43%, the Nasdaq index, 1.87% and the broader S&P 500 index, 0.93%.
John Plassard, investment specialist at Mirabaud, points to the “nervousness of investors aroused by the slowdown in global economic strength, the warnings of certain companies or the monetary tightening of central banks” to explain the decline in the markets.
The Fed hopes to be able to slow inflation without causing a recession. It is expected to carry out a fourth sharp increase in its key rates on Wednesday, expected at 75 basis points. Finding the right balance will be a high-flying exercise.
“The Fed’s policy of raising rates is causing the economy to slow down in addition to helping to regain control of inflation. The question is at what price,” said Stephen Innes, analyst at SPI.
The growth of the gross domestic product (GDP) of the United States in the second quarter will be published on Thursday and is expected to increase very slightly, after a negative first quarter (-1.6%). A recession is defined as two consecutive quarters of negative growth.
Last week, the European Central Bank raised its key rates for the first time in eleven years, by 50 basis points.
This was not enough to revive the euro as economic activity in the euro zone contracted in July on the back of still high inflation, according to the composite PMI index published on Friday by S&P Global.
The single currency lost 0.17% to 1.0195 dollars around 7:40 GMT.
Element allowing to hope that the inflation slows down, the prices of the raw materials are with the fall.
The barrel of Brent from the North Sea for delivery in September yielded 1.09% to 102.07 dollars at the same time. The barrel of American West Texas Intermediate (WTI) for delivery the same month fell 1.38% to 93.37 dollars.
Ryanair struggles to take off again
Irish airline Ryanair returned to profit for its delayed first quarter thanks to the surge in traffic, posting a positive result of 170 million euros after tax against a net loss of 273 million a year earlier.
At around 0740 GMT, the share price was down slightly by 0.23%.
Freewheeling Volkswagen
The boiling boss of Volkswagen Herbert Diess will leave his post in a few weeks after four eventful years at the head of the first European manufacturer, between the aftermath of Dieselgate and the transition to electric.
He will be replaced by Oliver Blume, the current chairman of the board of Porsche, the group’s prized brand aiming for the IPO.
Around 7:40 GMT, the title fell by 3.23%.
Kuehne+Nagel patina
The Swiss transport and logistics group on Monday published sharply higher results for the first half despite an already high comparison base in the face of tensions in transport and supply chains.
This was not enough to reassure investors. The title fell by 4.27%.
Bitcoin lost 3.33% to $21,968.75.
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