Few ideas on the Asian stock markets and the Pacific area, with operators also waiting for today’s ECB decisions. The Tokyo Stock Exchange closed with a timid rise of 0.1%, while Hong Kong recently recorded an increase of 0.7%. The Shanghai stock market also grew by 0.7%, while Shenzhen recorded a drop of 0.2%. Seoul was also Limata (-0.1%) with Sydney finishing flat.
Slightly down futures on the launch of the European markets, where all eyes are focused on the decisions of the ECB. The central banks’ war against inflation continues without second thoughts. The Fed continues with hikes of a quarter of a point, and the ECB could follow it on the same path if the mediation between hawks and doves is successful, discarding the hypothesis of a higher hike.
All this after a day, that of yesterday, which saw the European stock exchanges close positively, albeit below the highs of the day. The markets awaited the decisions of the Federal Reserve with some confidence, which as expected raised rates by 25 basis points, to a range between 5 and 5.25%, but the real market mover was the indications on the next moves: the signal that the peak in interest rates has been reached and that, for the moment at least, there will be a pause in the increases, in order not to risk jeopardizing an economy that appears shaky. Fears of a recession prevailed on Wall Street with the Dow down 0.80%, the S&P 500 down 0.70% and the Nasdaq down 0.46 percent.
The falling phase of crude oil prices continued yesterday with WTI contracts falling below the threshold of 70 dollars a barrel for the first time since OPEC’s surprise announcement of production cuts in early April. The crude oil market was affected by fears of a global recession and renewed turmoil in the US banking sector after the First Republic Bank bailout and renewed fears of contagion to US regional banks. Brent from the North Sea also falls for delivery in July below 74 dollars a barrel. And so, after accumulating a 5% slowdown on Tuesday, for the third consecutive day the prices of Wti and Brent fell sharply, by another 4%, reaching the minimum levels of 2021, the same reached in month of March, before the illusory rebound last month. Both indices “tested” downwards the psychological threshold of 70 dollars a barrel, a barrier that had been left behind in the last two years and on which there had been no more retreat.
