Stock markets open in the red

  •   12/01/2021 - 14h16
  •   DEHOUI Lionel

The main stock exchanges are opening in the red because of the numerous cases linked to Covid-19, recorded daily for the last five months. China reports 103 new cases in the last 24 hours, the majority of which are in mainland China, with 85 cases recorded in Hebei province. This figure remains low compared to the thousands of cases recorded daily on the old mainland and in the country of Uncle SAM. The other factor that justifies this decline in the markets is the drop in oil prices. Investors are waiting to see the broad outlines of the American economic recovery plan that the future administration is preparing. They are also closely watching the news in Congress, which is preparing for a new impeachment procedure " impeachment " of Donald Trump, accused of inciting its participants to launch an assault on the capitol.

Stock markets open in the red

Different trends in financial markets around the world

In Asia, and more specifically in China, financial markets have lost points, due to fears of a resurgence of covid-19 in the country and a probable resurgence of tension between Washington and Beijing. The Shanghai SSE Composite Index lost 1.08% and the CSI 300 lost 0.99%.

Seoul, for its part, saw a fall of 0.12%. In the United States of America, the New York Stock Exchange, Wall Street opened in the red. The Nasdaq Composite had lost 0.65% at the opening. The Dow Jones lost 178.85 points, which corresponds to 0.74%.

The Standard and Poor's 500 fell 0.55%. The cause of this decline in the US stock market is once again coronavirus. In Paris, the CAC 40 (which had risen 2.8% in a few weeks) lost 0.59% yesterday. That is the equivalent of 5,673.40 points at 8:50 GMT. In London, the FTSE 100 lost 0.49% and in Frankfurt, the DAX index fell 0.91%.

 

The fall in values

Large companies in Europe and Asia experienced a decline in their share values. The automotive sector was down (-1.3%), while utilities also fell (-1.32%). The transportation and tourism sectors also experienced a decline of (-1.20%).

The Total, Royal DUTCH Shell, Eni and Repsol groups lost between 0.5% and 1.5%. Oil prices fell back after a few weeks of rising prices. Brent crude oil fell by 0.8% to $55.54 a barrel. The French aeronautics giant Airbus gained 1.2% and remains at the top of the CAC 4O after the French increase in J's recommendation.P. Morgan at "outperformance" and 2020 deliveries that exceeded expectations and forecasts.

The banking sector is the only one spared by the fall in the financial markets thanks to the rise in bond yields. In particular, it gained +0.04. On the foreign exchange front, the dollar continues to rebound, helping US bond yields to rise. The index, which serves as a barometer for measuring the dollar against the benchmark basket, rose by 0.22%. As for the euro, it rose below 1.22 dollars before returning to 1.2167.