Posted January 4, 2023, 8:35 am
Helped recently by reassuring indicators on manufacturing activity in the euro area and on inflation in Germany, European stock markets are waiting to hear more about central bank monetary policy. Due later in the evening, the minutes of the latest meeting of the US Federal Reserve’s Monetary Policy Committee may provide part of the answer.
At the end of its December 13-14 meeting, the Fed released new projections showing that inflation could exceed its forecasts in 2023. As a result, the committee estimated that interest rates could have risen more than 5% this year. up from 4.25%-4.5% currently, despite signs suggesting that inflation is past its peak.
25 or 50 basis points in February?
” LRecent statements from Fed officials offer little sign of a halt to rate hikes this year, and the real debate isn’t whether the Fed will hike rates in February, but by how much. For now, the markets are torn between a 25 or 50 basis point hike and the cursor appears to be leaning slightly towards further 50 basis point tightening. However, that will really depend on economic indicators and, on this point, the outlook remains mixed. observes Michael Hewson, chief market analyst at CMC Markets.
Furthermore, the US central bank should also monitor the employment data, which will be released on Friday, and in particular the evolution of wages, while the Fed counts on an easing of the labor market to curb inflation. But for now, outside those evening minutes, the market will keep an eye on the S&P Global PMI in eurozone services, December’s US ISM manufacturing index and November’s JOLTS job vacancies survey.
This morning, Asian markets were in disarray as Wall Street started the year lower, dampened by the decline of tech heavyweights like Tesla and Apple, to their lowest in about two years. As for the reopening of China after almost three years of zero-Covid policy, the high frequency indices suggest a recovery of mobility in the main cities, and in particular a resurgence of public transport. China’s CSI 300 remained flat into the close, while Hong Kong stocks’ Hang Seng was up more than 2%.
Trigano remains confident
triganoreported a decline in revenue for the first quarter of the 2022-2023 financial year, in a context still marked by difficulties in the supply of mobile bases for campers. However, the group stressed that these tensions are starting to ease, which allows it to forecast an increase in production in the coming months.
Mersen announced it has been selected by Automotive Cells Company, a joint venture between Stellantis, TotalEnergies and Mercedes-Benz, to supply laminated interconnect bars for electric vehicle batteries in a contract that could be worth around €250 million for the group .
GT extension has announced that it has been chosen by its partner, the Chinese shipyard Hudong-Zhonghua Shipbuilding, to design the tanks of six new LNG carriers on behalf of several Asian enthusiasts.