(Il Sole 24 Ore Radiocor) – The European stock exchanges, extending the earnings of the eve supported by the openings of Ukraine to “neutrality” to find a peace agreement with Russia. While the negotiations have resumed and rumors arrive about Moscow’s backsliding for the “denazification”. Meanwhile, investors are also waiting for indications on the macroeconomic front and on the effects of the war. Key US employment and inflation reports are expected to be released this week, as we look at consumer confidence and the Case-Shiller house price index.
Meanwhile, the German consumer confidence plummeted to -15.5 in April from -8.5 in March, even below expectations, due to the war in Ukraine which is worsening inflation. The indicator, developed by the GfK institute on a sample of 2,000 people, fell for the second consecutive month. “The war in Ukraine also leaves clear traces on consumer confidence”, comments Gfk, noting in particular “the growing uncertainty and sanctions against Russia”, which have caused “energy prices to explode”, adds Rolf Burkl of GfK .
Oil moved slightly after the eve’s slide, Wti at $ 105.7
The price of crude oil moved little after the sharp slowdown on the eve of fears for international demand, afterwards the announcement of lockdown measures in Shanghai. The May delivery contract on Brent from the North Sea slipped by 0.38% to 112.05 dollars a barrel and that of the same maturity on the WTI by 0.26% to 105.68 dollars a barrel. The price of gas moves slightly higher: in Amsterdam April futures rise by 3.9% to 106.63 euros. On the exchange front, the euro is stable against the dollar
Tokyo stock market recovering + 1.1% with weak yen
The Tokyo Stock Exchange closed in rebound, driven by the weak yen (yesterday at its lowest since 2015 on the dollar) and the decline in US crude oil futures. The Nikkei Index recovered 1.1% to 28,252.42 points and the Topix Index gained 0.93% to 1,991.66 points. The yen fell to its nearly seven-year low against the dollar yesterday, weakened by the Bank of Japan’s very accommodative monetary policy, as other central banks tighten cordons amid inflation. Added to this is the sharp drop in oil prices also recorded yesterday. In Hong Kong, the Hang Seng index gained 0.8% before closing, while the Shanghai Stock Exchange fell 0.3%, with the lockdown affecting half of China’s economic capital.