(Boursier.com) — The New York Stock Exchange is moving lower to start the week, with investors looking rather wary ahead of the start of the new corporate earnings season and the release of key US inflation data on Wednesday. -United. New health restrictions in China, to contain the spread of COVID-19, are also weighing, with new concerns for global economic growth.
the Dow Jones shows a decline of 0.48% to 31,191 points, while the S&P500, wider lost 1.09% to 3,856 points. the Nasdaqrich in technology stocks, fell 1.92% to 11,410 points.
Wall Street ended in disarray on Friday after a sluggish session, marked by investor hesitation about the impact that the better-than-expected job creation figure could have on the aggressive monetary tightening strategy of the Federal Reserve.
In Europe, markets are also cautious and moving into negative territory. In Paris, the CAC 40 lost 0.72% to 5,975 points at 5 p.m. In Frankfurt, the Dax fell by 1.24% and in London, the Footsie down 0.21%.
The appointments of the week
The release, scheduled for Wednesday, of June inflation data in the United States will be the center of attention this week. The consumer price index is expected to show an acceleration from last month’s number, mainly due to higher gasoline prices and the cost of energy.
Investors, looking for clues on the Fed’s monetary policy decisions at the end of the month, learned on Friday of an official employment report that once again testified to the robustness of the stock market. work, while the pressure on wages remains strong.
In terms of publication of company results, banks JPMorgan Chase and Morgan Stanley will kick off the second quarter on Thursday. According to Citigroup, corporate earnings should remain resilient in the face of soaring inflation and slowing economic growth, which could lead to a rally in equities in the second half of the year.
China worries
Market trends are affected by the health situation in China, with several Chinese cities announcing new travel restrictions and even lockdowns in an attempt to contain the COVID-19 outbreak as Shanghai prepares for a new campaign of massive screening.
The dollar goes up again
In the foreign exchange market, theeuro, which came close to parity with the dollar on Friday after the publication of the monthly US employment report, fell another 1.08% to 1.0073. The single European currency is penalized in particular by maintenance work on Nord Stream 1, the most important Russian gas pipeline serving Germany, which is shut down for ten days, while the context of the war in Ukraine raises fears of a prolonged suspension of Russian hydrocarbon supplies.
the dollar (+0.93%), for its part, benefits from its status as a safe haven asset against other major currencies.
Oil is retreating
Oil prices are falling again, penalized by fears of a recession and new health restrictions in China. The barrel of Brent dropped 2% to $104.88 and that of US light crude (West Texas Intermediate,WTI) 2.37% to $102.31.
Values
Twitter plunges 7%. End of a long soap opera with twists and turns, Elon Musk finally announced on Friday that he was ending the agreement to buy Twitter for 44 billion dollars (43 billion euros). The richest man in the world, who heads Tesla and SpaceX, criticizes the social network for not providing accurate data on the number of fake accounts and spam.
Las Vegas Sands (-9%), Wynn Resorts (-8.4%), Melco Resorts (-9.9%), MGM Resorts (-3.2%), Bilibili (-9.3%) suffer after Macau closed all casinos for the first time in more than two years to contain the spread of COVID-19.
You’re here yields 4.1%. The United States Motor Vehicle Safety Agency announced on Friday that it will open an investigation into a Tesla car accident that killed two people in Florida.
GlobalFoundries (-6.6%) and STMicroelectronics announced their intention to build a semiconductor factory in France.
Abbott Laboratories (-0.5%) announced on Saturday that it has reopened its factory in Sturgis, Michigan, and resumed production of infant formula there after closing last month due to weather damage.