Paris (awp/afp) – Stock markets were heading for another week of gains, as oil prices fell on Friday amid gloomy economic prospects and the resurgence of the Covid-19 outbreak in China.
The New York Stock Exchange opened in the green. At around 14:45 GMT, the Dow Jones was up 0.31%, the S&P 500 was up 0.41% and the Nasdaq was up 0.42%.
The European stock market also rose markedly, after a more cautious opening: Milan gained 1.05%, Paris gained 1.00%, Frankfurt 0.89%, London 0.42%. In Zurich, the SMI gained 1.11%.
The Eurostoxx 50, which includes 50 large European companies, also briefly entered a “bullish market” in the morning, recovering more than 20% from its latest low in late September.
In the oil market, US WTI for December delivery, the benchmark US variety, fell nearly 5% on Thursday and lost another 4.16% to $78.25 around 14:20 GMT, falling below the $80 for the first time since late September.
A barrel of Brent from the North Sea for January 2023 delivery fell 3.84% to $86.35.
“Oil is heading for a sizable weekly loss” of 10% for WTI and 8.5% for Brent “on heightened fears over bleak demand outlook,” said FXTM analyst Lukman Otunuga .
Investors are mostly busy analyzing central bankers’ statements about their next monetary policy decisions, with talk still looking pretty tough on both sides of the Atlantic.
On Thursday, St. Louis, Missouri Federal Reserve Chairman James Bullard “expressed a number of pro-tightening views that initially weren’t well received by markets,” said Craig Erlam, an analyst at Oanda. But the markets have “still rebounded”, investors seem to take these statements with “tweezers”, according to the analyst.
“The Fed is clearly concerned that speculation on the +dovish pivot+”, speculation that the US central bank will soon slow its rate hikes, “could undermine its tightening efforts,” Erlam said in explaining the firmness of the speech.
Key rate hikes will continue in the eurozone, Christine Lagarde reiterated in a speech in Frankfurt on Friday. The president of the ECB has estimated that the recession threatening the eurozone will not be sufficient to stem the rise in prices.
On the bond market, interest rates on government bonds in Europe and the United States remained stable on ten-year maturities.
In addition, the expiration of stock and index options, as well as so-called index futures contracts – various futures contracts worth several billion dollars (known as the “three witches session”) – can lead to increased volatility during the session .
Energy progresses ___
British energy companies rallied again the day after the balance sheet presentation: Centrica took 1.20%, SSE 1.59%. Elsewhere in Europe, RWE also increased by 1.06%, EON by 2.18%, Siemens Energy by 3.02%
Amazon fires ___
Amazon (+0.31% to 95.12 euros) confirmed Thursday that it had undertaken to lay off staff to deal with the economic crisis, after several days of rumors about a social plan at the e-commerce giant.
On the side of currencies and bitcoin ___
The euro lost 0.17% to $1.0343, while the pound gained 0.26% to $1.1894 at around 14:45 GMT.
Bitcoin was stable (-0.02%) at $16,675.