Slight rise on Wall Street before the ADP Jobs Survey

  •   08/05/2020 - 10h16
  •   DEHOUI Lionel

The news menu for this Wednesday has been quite full. Wall Street is hoping for a green light as Europe's stock markets hesitate. They are torn between the hammer and the anvil formed by the rise in oil prices and uncertainties about China-U.S. collaboration. In addition, the gradual revival of the economic sector is adding to the bad signs. This is how the picture of the global economic sector looks this Wednesday. Indeed, the various values recorded for the American indices announce an upward start to the session on Wall Street (+0.8%). It is possible to see a trend change before the start of the ADP survey, which is conducted monthly and focuses on private employment. The official report on unemployment registrations is expected this Friday from the Department of Labor.

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Slight rise on Wall Street before the ADP Jobs Survey

European Indices

The CAC 40 lost 0.3% this Wednesday at 4.469.83 points as it rang 11:15 GMT. Earlier in the morning, it lost 0.8% while the Dax remained stable in Frankfurt (-0.02%). In London, the FTSE is up 0.64%, while the FTSEurofirst 300 is up 0.42%. The EuroStoxx 50 is down 0.23% and the Stoxx 600 is up 0.23%.

 

Collaboration between China and the United States

According to ActivTrades analyst Pierre Veyret, risk assets face uncertainties. For him, it is true that operators are aware that the peak of the pandemic has somehow passed. But they still have concerns about U.S.-China collaboration. For, the White House had recently questioned Beijing�s attitude about the origin of Covid-19.

As an answer on Wednesday, Beijing said that it is not possible to use tariffs as a weapon. His intervention comes in the wake of Trump's threat that he would resort to them for possible reprisals against Beijing's management. The latter concerns the health crisis of Covid-19, whose advent dates back to last December on Chinese soil. On the other hand, the operators could be interested in the exchange rate.

 

The exchange rate and the bond market

This Wednesday, as Europe is in the aftermath of the decision of the German Constitutional Court, the European currency continues to fall. Indeed, the euro loses about 1.08 dollar approaching a 2 week decline. It has been at a very low level since November 2016. As for the dollar, it takes 0.34% against a reference basket. But the situation of the bond market is also evoked this Wednesday.

Indeed, the 10-year U.S. government bond yield is gaining about 3 basis points (0.6839%) in the bond market. As for the 10-year German Eurozone Bund benchmark rate, it gains 3 basis points to -0.547%. This well before the start of the first syndicated bond issue in 5 years by Berlin. However, oil is making a fresh start this Wednesday.

 

Oil

Yesterday's morning was marked by a slackening in crude oil prices, but these have finally returned to rise. However, U.S. WTI light crude rose 3.5% to $25.42 a barrel. At the same time, North Sea Brent is up 2.32% to $31.69.