Global markets in disarray

Paris (awp/afp) – Global markets were mixed on Friday ahead of the long weekend and the end of the year, focusing on the prospect of a rate cut, making them more bullish ahead of the end of the year. publication of the PCE inflation index in the United States.

Continuing a week without tone or clear direction, European stock indexes are almost flat, even rising slightly, after opening very slightly lower: around 9:30 a.m. Paris gained 0.15%, Frankfurt 0.05% and London, which closes at 1:30 p.m., gain 0.03%. At 10:25 AM, the SMI was up 0.04%.

In Asia, the Tokyo Stock Exchange ended very slightly higher on the back of a clear slowdown in Japanese inflation in November (2.5% over the year versus 2.9% in October). The flagship of the Japanese capital strengthened the Nikkei index by 0.09%.

Hong Kong was in the red after China announced new restrictions on online gaming that sent Tencent plummeting, with the Hang Seng index losing 1.70% by 08:30 GMT.

On Thursday, Wall Street ended higher in New York and headed back to highs thanks to a revised growth number that confirmed a slowdown in the U.S. economy: The Dow Jones gained 0.87%, the Nasdaq added 1.26% and the broader S&P 500 returned 1 .03%.

All economic indicators point to a future slowdown in the US economy, which arouses optimism among many market participants.

“The slowing economy will allow the Federal Reserve (Fed) to loosen its grip on monetary policy while avoiding a recession if inflation falls and remains low, close to the Fed’s 2% target,” estimated Ipek Ozkardeskaya, an analyst at Central American Bank. Swissquote Bank.

Today, investors in the United States will be particularly watching the release of the PCE inflation index number for November. This index is the Fed’s preferred barometer for measuring price growth.

“This is the last crucial piece of the Fed’s puzzle,” says Ipek Ozkardeskaya, for whom “if the PCE index is as weak as expected, or even weaker ideally,” markets will continue to grow.

In the day’s other expected indicator, UK gross domestic product (GDP) fell very slightly in the third quarter and was unchanged in the second quarter, according to revised official estimates released on Friday, which paint a bleaker-than-expected picture of the British economy.

In the bond market, interest rates on government loans were almost flat around 08:30 GMT. The yield on the 10-year U.S. Treasury note was at 3.87% after ending at 3.89% on Thursday.

Tencent in hell

Beijing on Friday announced plans to impose new restrictions on online gaming to curb in-app purchases through microtransactions and fight addiction to the phenomenon.

The announcement immediately sent Chinese tech giants in the sector tumbling on the stock market, starting with world No.1 Tencent, whose shares fell 15% in Hong Kong.

According to the financial agency Bloomberg News, the group suffered a capitalization loss of no less than 54 billion dollars.

Oil rebounds, bitcoin falls

After falling on Thursday following Angola’s announcement of its withdrawal from the Organization of the Petroleum Exporting Countries (OPEC), oil prices rebounded on Friday in a context still marred by tensions in the Red Sea.

Brent North Sea crude for February delivery rose 1.12% to $80.28. Its US equivalent, West Texas Intermediate (WTI), due in January, rose 1.15% to $74.74.

In the foreign exchange market, the euro was close to balance against the dollar (-0.06%) at $1.1004 per euro.

Bitcoin fell to $43,679.


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