World markets are moving with restraint on Monday, divided between enthusiasm around technology stocks on the stock markets, and persistent tensions in the Middle East which are fueling the rise in oil and sovereign rates.
“The standoff facing investors remains unchanged: strong corporate results and optimism driven by artificial intelligence continue to provide strong support to the markets, but high bond yields, firm oil prices and uncertainties about future interest rate developments still limit enthusiasm”, summarizes Matt Britzman, analyst at Hargreaves Lansdown.
On the geopolitical level, Iran reaffirmed Monday that any agreement with the United States to end the war in the Middle East was conditional on a ceasefire in Lebanon where the Israeli army is striking positions of Hezbollah, Tehran’s ally.
The spokesperson for Iranian diplomacy also accused the United States of continuing to violate the fragile ceasefire with Iran, in force since April 8.
The US military announced on Sunday that it had carried out strikes in southern Iran, targeting radar and drone control systems.
The new attacks support oil prices on Monday. Around 11:45 GMT, Brent from the North Sea, the world benchmark for crude oil, increased by 2.94%, to $93.80 per barrel, and its American equivalent, WTI, gained 3.66%, to $90.56.
“Even though both sides have carried out attacks, markets continue to cling to the idea that negotiations are continuing and that a deal between the United States and Iran, intended to end the war in the Middle East and reopen the Strait of Hormuz, will eventually see the light of day,” says Kathleen Brooks, director of research at XTB.
– Tech, the engine of the stock markets –
The rise in crude prices “has barely affected the stock markets”, notes economist Jim Reid of Deutsche Bank, with the technology sector remaining the driving force in this segment.
“The theme of artificial intelligence further strengthens its domination of global markets,” summarizes Ms. Brooks.
On Wall Street, futures contracts on the three main indices suggest a green opening.
In Europe, the mood is more cautious on the main indices less exposed to tech, “confirming that if we remove technology from the equation, the rest of the global industrial sectors appear rather gloomy”, reports Ipek Ozkardeskaya.
Around 11:45 GMT, the Paris Stock Exchange gained 0.17%, Frankfurt 0.48%, while London (-0.07%) and Milan (+0.05%) were in balance.
The tech sector also stands out on the European continent. In Paris, STMicroelectronics gained 0.41%. In Frankfurt, Infineon gained 2.06% and SAP climbed 6.38%.
On the Tokyo Stock Exchange, the flagship Nikkei index ended up 0.91%, driven in particular by the surge in SoftBank shares (+14% approximately), which announced massive investments in France during the weekend.
The Kospi index of the Seoul Stock Exchange rose 3.68%. Since the start of the year, it has soared by more than 108%.
In Hong Kong, the Hang Seng ended up 0.86%. In mainland China, however, the Shenzhen Stock Exchange ended down 1.27% and Shanghai 0.23%.
– EasyJet flies to London –
EasyJet soared 8.74% on the London Stock Exchange on Monday after the announcement by the American investment company Castlelake that it was considering a takeover offer from the British airline which for its part denounces an “opportunistic” approach.
– Sovereign borrowing rates on the rise –
Oil prices remain at levels “high enough to threaten economic activity” worldwide, recalls Ipek Ozkardeskaya, and fears of higher inflation are further pushing global bond yields upwards.
The rate on the 10-year German bond (Bund), considered the strongest in the euro zone, rose to nearly 2.98% around 11:45 GMT, compared to nearly 2.94% at the close on Friday.
The yield on the ten-year French bond stood at 3.59%, compared to nearly 3.55% on Friday evening.
