The holiday season is behind us. And the usual problems return. Starting from the Chinese real estate crisis: today Evergrande, the sector's symbol company leaves 19% on the ground after a new bailout plan failed.
The news comes amid a highly depressed oil market; despite the higher sales of the OPEC countries. Saudi crude oil trades at 72,7 dollars. “If I had to rely only on price forecasts without paying attention to geopolitics I would be even more pessimistic,” the analyst tells Reuters Tony Sycamore.
Apple suffers, oil drops
In this context, two big names suffer: Apple Lossless Audio CODEC (ALAC), in the first trades of the week it confirmed itself in the red after five consecutive sessions of decline. At these prices, the week ended with a largely negative balance, -3,2%. S&P500 +0,7%, -1,3% for the week. Declining oil after Saudi Arabia cut prices. WTI -1% to 72,7 dollars a barrel. Brent at 78 dollars.
Asia is negative
In Asia, the Hang Seng index in Hong Kong lost 2%, from -3% last week. Hang Seng Tech is down 3,3%, to its lowest level since the end of 2022.
For the Hong Kong stock exchange it is the worst start to the year since 2005. CSI 300 index of Shanghai and Shenzen -1,2%. Bucking the trend, the Taipei stock market closed up 0,3% thanks to the push from semiconductor companies.
Elon Musk on drugs, companies are at risk
The situation is even more dire Elon Musk. According to the Wall Street journal the founder of Tesla and SpaceX, uses drugs extensively including «LSD, cocaine, ecstasy, magic mushrooms and ketamine», a mix that threatens to damage companies.
Complicated picture also on a macro level, the market seems to have chosen to favor the negative outlook indications provided by the ISM non-manufacturing index, as they bring the possibility of a rate cut in March closer. But unemployment is not falling, hourly wages are rising and the job market is not warming, the Federal Reserve will probably not feel the urgency to cut rates as soon as possible, a hypothesis that became an almost certainty in the last two weeks of the past month.
Europe opens lower
European stock markets should open slightly lower, EuroStoxx50 index futures -0,2%.
On Friday, Wall Street closed just above parity, for the Nasdaq, up 0,1%, it was the first positive session after five consecutive negative ones. The tech index closed the week with a decline of 3,8%. S&P500 +0,2% for the session and -1,8% for the week. The Wall Street benchmark index had recovered from nine consecutive weeks of growth.
US Congressional leaders announced tonight that they have reached a agreement on maximum federal spending for the current fiscal year to 1.590 billion dollars: the agreement reduces the possibility of a partial shutdown of government activities on January 20.
Il Treasury Notes ten-year at a rate of return of 4,05%, the ten-year had closed last year approximately fifteen bases lower. Bund at 2,15%, from 2,12% on Thursday evening. BTP at 3,84%.
Euro little moved in Friday's session and this morning in Asia, the cross is trading around 1,093. Gold slightly lower than Friday evening, at $2,035 an ounce.
