European stocks opened today, Friday, lower and on their way to record a weekly loss, as risk appetite was negatively affected by concerns about keeping interest rates high globally for a longer period, as well as concerns about the growth of the Chinese economy.
The European Stoxx 600 index fell 0.5 percent and is on its way to recording a fourth consecutive day of losses if it continues to decline at the end of trading. The rise in bond yields also pressured stocks this week, prompting the European index to record a weekly decline that could reach two percent. .
Meanwhile, the Chinese economy preoccupies investors, as economic data and problems facing the Chinese real estate sector showed the extent of the faltering recovery there after the pandemic.
Shares of major luxury goods companies with strong exposure to China, such as LVMH, Kering and Hermes, declined by rates ranging between 0.6 percent and 1.2 percent due to growing concerns about the impact of weak economic growth in China, which has the second largest economy. In the world, shares of European mining companies, which are also exposed to China, fell 1.1 percent in early trading.
The “Financial Times” leading index fell 0.6 percent, after data showed that British retail sales fell more than expected in July.
Japan’s Nikkei records its biggest weekly loss in eight months
In East Asia, the Japanese “Nikkei” index recorded today, Friday, the largest weekly loss in eight months, with its decline for the third consecutive session, under pressure from concerns related to the prospects of the Chinese economy and concern about the rise in bond yields.
The Japanese index lost 3.1 percent during the week, which is the largest weekly loss since the week ending on December 23, 2022. As for today’s performance, the index fell 0.55 percent to close at 31450.76 points, with its decline for the third consecutive session, and the “Topix” index also fell. The widest range at closing rose 0.70 percent to 2237.29 points, down 2.8 percent during the week.
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Commenting on this, Shuji Hosui, chief analyst at Daiwa Securities, said, “The Japanese market plunged for the same reasons in the previous few sessions, which are concerns about the Chinese economy and rising bond yields globally,” adding, “Japanese stocks are easily affected by external factors in the absence of catalysts.” moving the market right now.
The share of “Fast Retailing”, which owns the Uniqlo brand, fell 1.15 percent, and thus constituted the greatest pressure on the “Nikkei” index, as well as the shares of companies operating major department stores, which usually benefit in the event of an influx of Chinese tourists. J Front Retailing fell 4.31 percent, becoming the worst performer on Nikkei.
Gold is recovering from its lowest level in 5 months
In the precious metals markets, gold rose from its lowest level in five months with the decline in the dollar and bond yields, but the yellow metal is heading to record another weekly decline, as encouraging data from the United States reinforced expectations that the Federal Reserve (the central bank) has not yet finished raising interest rates.
Spot gold rose 0.2 percent to $1,892.30 an ounce, after touching its lowest level since mid-March on Thursday. US gold futures rose 0.4 percent to $1,922.90.
For his part, Tim Waterer, senior market analyst at KCM Trade, said, “The dollar retreated from its recent highs, which allowed gold to move slightly upward,” adding, “The standard 10-year US Treasury yields also fell from their highest levels since October (October). the first) 2022.
In addition, investors are now awaiting the meeting of central bank governors in Jackson Hole, Wyoming, USA, next week, to obtain indications regarding interest rates.
As for other precious metals, spot silver rose 0.4 percent to $22.78.
Platinum rose 0.6 percent to $894.72, and palladium rose 0.4 percent to $1,221.48, but the two metals are heading for a weekly decline.
2023-08-18 14:26:02
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