Markets: technical rebound of stock markets, the euro and bitcoin

Global stocks rebounded for the final session of a very volatile and inflation-ridden week, while bitcoin and the euro tried to recover from heavy losses.

In Europe, Paris took 1.71%, London 1.73%, Frankfurt 1.46% and Milan 1.43%.

After a mixed session on Thursday, Wall Street was heading for a higher open. The Dow Jones futures contract gained 0.82%, after having chained six consecutive sessions of decline. That of the S&P 500 rose by 1.20% and that of the Nasdaq by 1.81%, despite the fall to come from the Twitter action.

Asian markets were more vigorous, especially Tokyo (+2.64%) and Hong Kong (+2.6%).

“If you’re looking for the positive news that’s responsible for the recovery this morning, you won’t find any,” warns Jochen Stanzl, analyst at CMC Markets.

The week has so far been eventful and very volatile on financial markets weighed down by a cocktail of risks: monetary tightening, record inflation, risk of recession and geopolitical conflict in Europe.

In this context, “the US dollar continued to act as a safe haven,” notes Michael Hewson, analyst at CMC Markets.

The greenback reached a new high in five years against the European currency which fell below the bar of 1.04 dollars for one euro on Thursday. The euro rose 0.06% to 1.0386 dollars around 11:45 GMT.

Investor risk aversion, on the other hand, pushed bitcoin to its lowest since late 2020 on Thursday. Friday he was trying to rebound (+6.80% to 30,500 dollars) after losing 35% of its value since the start of the year.

The other major cryptocurrencies did not resist the disinterest of the markets and the whole sector found itself destabilized.

Sign of the magnitude of the shock, stablecoins, these assets whose issuers guarantee an inviolable parity with the dollar, have seen their price evolve.

For the equity markets, obsessed with the tightening of the American central bank, the Fed, the only positive element of the session lies in the statements of Jerome Powell, who remained in line with his previous announcements.

On Thursday, the Fed Chairman declared himself in favor of two 0.5 percentage point rate hikes at the next two meetings “if the economy develops as expected” and, according to Bloomberg, he reaffirmed that the Fed did not envisage a steeper hike of 0.75 points.

Mr Powell, however, warned that controlling inflation “would not be painless” and that bringing inflation down to around 2% without creating an economic recession “may actually depend on factors” that the monetary institution does not not control.

Given the latest economic statistics, “it is increasingly difficult to see how the Fed will achieve a + soft landing + for the economy,” said Neil Wilson of Markets.com.

Suspension of the takeover of Twitter

Elon Musk said he was suspending the acquisition of Twitter pending details on the proportion of fake accounts on the social network. The stock fell nearly 14% in pre-session electronic trading.

Renewable energies sought

Tensions over Russian gas supplies to Europe continue to worry investors.

This benefited companies in the energy sector and especially those engaged in renewable energies. Siemens Energy took 4.77%, RWE 2.60%, Neoen 4.92%, Engie 2.36% and Endesa 1.50%.

Oil up slightly

Oil prices rose helped by fears of a possible restriction of supply, in particular with the planned European embargo.

Around 11:40 GMT, a barrel of Brent from the North Sea for delivery in July gained 1.67% to 109.18 dollars.

A barrel of US West Texas Intermediate (WTI) for delivery in June took 1.63% to 107.85 dollars.

Le Revenu, with AFP

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