Wednesday, October 5, 2022
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European stock markets rebound ahead of US employment data

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European stock markets rise in the session this Friday. The DAX scores a little more than one percentage point, up to 12,758.44 points, the FTSE -100 adds 0.3%, up to 7,169.05 points, the CAC-40 opens above 6,067 integers while the Eurostoxx 50 advances 0.7%, to 3,481.85 points. The FTSE MIB added 0.6% to 21,441 points. The Ibex 35 rises 0.3%, to 7,830 points.

At the corporate level, we learned today that Credit Suisse could cut some 5,000 jobs, roughly one in ten. The scale of the potential job cuts underscores the challenge facing Credit Suisse and its new chief executive as it tries to bring order to the bank after a series of scandals.

At a macro level, today we learned that German exports fell by 2.1% in monthly and seasonally adjusted terms in July, higher than expected. For its part, the import figure fell 1.5% after the data was revised downwards in June, from 0.2% to 0.1%. Overall, the German trade balance showed a surplus of 5.4 billion euros, after a figure of 6.4 billion in June.

In Spain the variation in unemployment will be known and at a European level the Producer Price Index for July will be published. In the US, the focus will be on the unemployment rate for August.

In addition, investors remain alert to the possible interventionist measures that the different European authorities, including many governments, have threatened to adopt, measures that may affect sectors such as utilities or energy and, therefore, condition its behavior on the stock market by modifying the expectations of the companies’ results. In that sense, “point out that the G7 continues to advance in its objective of capping the price of Russian oil, something that is not well known how it will be able to be done. In addition, the European Union (EU) and the United Kingdom intend, for their part, to prohibit insurance companies from providing services to Russian ships from December, which, in principle, seeks to limit their ability to distribute oil from the country. We will have to see how this whole thing evolves. The only thing that is certain today is that Russia, despite the sanctions, is exporting as much or more oil than before the start of the invasion of Ukraine and, moreover, at higher prices”, they recognize in Link Securities.

On the other hand, the United Nations nuclear experts who crossed into Russian-controlled territory in Ukraine to assess the safety of Europe’s largest atomic power plant are trying to assess the physical damage to the facility, where both sides warn of a possible disaster. . In addition, Iran has sent a “constructive” response to US proposals aimed at reviving Tehran’s 2015 nuclear deal with world powers, Iran’s foreign ministry said, prompting less positive comments from the United States.

Today Wall Street futures are trading slightly lower after a mixed close in yesterday’s session and with an eye on the US employment data. The US payrolls report for August is likely to show that businesses continued to hire workers at a brisk pace while wages rose steadily, signs of continued labor market strength that could prompt the Federal Reserve to make a third interest rate hike of 75 basis points this month. At this time, the Dow Jones is down 0.2%, above 31,589 points, the S&P 500 is down 0.18%, down to 3,959 points while the NASDAQ 100 is trading with falls of 0.16% that lead to the 12,254.10 points.

Today oil rebounds. Brent oil futures rose just over 1.6% to 93.86 points while West Texas rose 1.5% to $87.94. A revaluation that is produced by the bet that OPEC + will discuss production cuts at a meeting on September 5, although the benchmark indices were headed for a sharp weekly drop, as fears over COVID-19 restrictions in China and weak global growth weigh on the market.

The EUR/USD tries to bounce against the dollar – up to 0.9968 units – and the main cryptocurrencies register gains at the beginning of the session. Bitcoin rises just over half a percentage point to $20,095.5, while Ethereum is up more than 2% to $1,586.16.

 

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