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MARKET REVIEW. Stock markets appeared buoyed by falling crude prices ahead of a meeting of oil-producing countries amid speculation of a Saudi output surge.
In Europe, indices rose “after the previous day’s failed jump attempt, relaunched by falling oil prices,” observes Franklin Pichard, managing director of Kiplink Finance.
Wall Street was preparing to follow the same trend, with gains of between 0.45% and 0.80% in futures of the main indexes before the opening.
London Square is closed for the celebrations of the 70th anniversary of the reign of Elizabeth II.
Stock indices at 7:42 am
In the United States, futures contracts dow jones it rose 144.00 points (+0.44%) to 32,942.00 points. futures contracts S&P500 it picked up 21.50 points (+0.52%) to 4,120.50 points. futures contracts nasdaq it collected 83.00 points (+0.66%) to 12,634.00 points.
In London, the FTSE 100 closed. In Paris, the CAC 40 rose 68.41 points (+1.07%) to 6,487.30 points. In Frankfurt, the DAX rose 112.93 points (+0.79%) to 14,453.40 points.
In Asia, the Nikkei Tokyo ended with a drop of 44.01 points (-0.16%) to 27,413.88 points. For his part, the hang up seng Hong Kong ended down 212.81 points (-1.00%) to 21,082.13 points.
On the oil side, the price of a barrel of American WTI it fell US$3.07 (-2.66%) to US$112.19. the barrel of Brent North Sea it fell US$2.97 (-2.55%) to US$113.32.
Oil prices fell ahead of the meeting of the OPEC+ countries on Thursday by videoconference at 8:00 Quebec time (2:00 p.m. in Vienna, headquarters of the cartel) to adjust their oil production.
This meeting takes place two days after the announcement of an embargo by the European Union to reduce its imports of Russian crude by two thirds.
According to the Wall Street Journal, OPEC members are studying the possibility of excluding Russia from the agreement that sets production quotas for the enlarged alliance.
Such a scenario would allow Saudi Arabia and the United Arab Emirates to use more of their capacities to enable supply of the market.
An article from the British Business Journal financial times it also reports that Saudi Arabia would be ready to increase its production even more if Russia’s fell sharply after the latest sanctions, experts underline, finding there the reason for the calm in crude oil prices.
“None of this is going to alleviate the shortages and refining bottlenecks that are driving up gasoline and diesel prices, but it would be rare good news for the global economy and the fight against ‘inflation,'” the report said. analyst Jeffrey Halley at Oanda.
Inflation, or rather its effects on growth, puts investors, but especially central banks, in a bind.
The US Federal Reserve (Fed) began raising its key rates in March to make credit more expensive and curb demand. Fears are now mounting that economic activity will slow down or even fall into recession, even if the Fed currently rejects this scenario.
In the euro zone, inflation hit a record high of 8.1% in May, putting additional pressure on the European Central Bank to raise interest rates faster than expected.
His task is complicated since he must ensure that European states do not borrow at levels that are too far apart so as not to create a fragmentation in the sovereign debt market in the euro zone.
Facilities of the German car manufacturer BMW (+1.17%) were registered on Wednesday in Germany and Austria as part of an investigation by the South Korean authorities that has been ongoing since 2018 into problems in the exhaust gas cooling circuit.
The e-commerce giant Amazon On Thursday it announced the closure of its Kindle digital bookstore in China next year, thus giving up this niche in the huge Chinese market. The stock gained 1.08% in electronic trading before the Wall Street open.
Title Goal (Facebook) took 1.25% in electronic trading before the opening of the American markets the day after the announcement of the resignation of the group’s number two, Sheryl Sandberg.
The US dollar was catching its breath on Thursday, after its jump the day before, ahead of the release of US macroeconomic data on private business payrolls and the US labor market for May.
At around 6:40 a.m., the dollar was down 0.38% at $1.0691 per euro.
Bitcoin rose 1.34% to $30,018.