(New York) Global markets failed to rebound on Monday after a sluggish week, still preoccupied with interest rates and bleak growth prospects.
The Wall Street Stock Exchange, hesitant in session, finally ended in the red, weighed down by technology: the Dow Jones fell 0.04%, the S
In Europe, London and Frankfurt ended down 0.11%, while Paris gained 0.29% and Milan 0.12%.
Between a less dynamic activity indicator and more aggressive central bankers’ speeches, the markets are caught in a “scissors effect”, observed Alexandre Baradez, analyst at IG France.
The only indicator expected on Monday, the IFO barometer of business sentiment in Germany in June, continued to fall, illustrating the recession taking hold in Europe’s largest economy.
“There are signs that central bank action is finally cooling the economy in Europe, while activity has also slowed in the United States, but less dramatically,” recalled Art Hogan of B. Riley Wealth Management.
Investors also continue to remember the decisions and comments of central banks around the world over the past 15 days.
US Federal Reserve (Fed) Chairman Jerome Powell warned last week that further rate hikes were expected this year to try to contain inflation, while several other central banks in Europe surprised the markets with more aggressive monetary tightening than expected.
The European Central Bank (ECB) kicked off its annual forum on Monday to be held until Wednesday in Sintra, Portugal, on the topic of economic stability in the face of high inflation.
In the bond market, yields on 10-year government bonds, the benchmark maturity, were down slightly in Europe and the United States.
The failed rebellion in Russia, led over the weekend by the leader of the Russian paramilitary group Wagner, has “not lasted long enough” to weigh on markets, but “it is a geopolitical factor that will remain unresolved sometime,” said Peter Cardillo of Spartan Capital.
British luxury carmaker Aston Martin on Monday announced “a strategic supply agreement” with U.S.-Saudi electric vehicle maker Lucid to create “ultra-luxury, high-performance electric vehicles,” according to a statement.
The announcement sent Aston Martin’s stock soaring 10.70%, and supported Lucid’s (1.46% on Wall Street).
Pfizer fell 3.68% as the group announced it was halting development of an experimental obesity drug, Lotiglipron, which appears to have a bad effect on the liver.
Vaccine maker Moderna climbed 1.61%, benefiting from a better appreciation of the group’s valuation potential by UBS bank.
The bankrupt British cinema group Cineworld fell 17.95% after announcing an upcoming placement in receivership in the United Kingdom of its parent company, whose assets will be transferred to its creditors.
Oil prices ended slightly higher, the gains caused by the mutiny of the Wagner group in Russia remaining reduced by a sluggish economic context, unfavorable to global demand.
A barrel of Brent North Sea oil, for August delivery, rose 0.44% to $74.18.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, took 0.30% to 69.37 dollars.
The euro climbed 0.19% to 1.0915 dollars, around 2:30 p.m. (Eastern time).
Bitcoin fell 0.53% to $30,187.
