European stocks recorded a rise and brent has fall, which made front with the North American market and emerging countries.
In the euro zone, data on economic activity and optimism about an upcoming deal for Greece reassured investors and supported the prices. The Stoxx Europe 50 index rose 0.3%, driven by the German DAX index (+ 1.6%) and the French CAC 40 (+ 1.4%).
The United States and emerging markets underperformed Europe. The market for US shares is in anticipation of an increase in interest rates in early September. Bad news for investors accustomed to abundant liquidity and very low costs. The S&P 500 index lost 1.3% and the Nasdaq 1.7%.
For emerging markets, and the impact it will have an increase in US interest rates, plus the slowdown of the Chinese economy. A China in transition weighs on prices of raw materials, of which emerging countries are important exporters. The Brazilian stock market lost 4.5% and some coins have also been under pressure: the Russian ruble and the Brazilian real lost, respectively, 3.7% and 1.9%.
The prospect of higher interest rates in the United States, at a time when the BCE remains committed in its program of buying financial assets, also put pressure on the euro, but the European currency was little affected: started the very next week $ 1,10, having just retreated to near $ 1.09.
The big loser has been the Brent crude oil, which fell to $ 48.5 per barrel (-6.9%). The slowdown in China weighs on demand at a time when the offer is constantly increasing. For example, in the US the production of shale oil is still growing to the point that the country’s refineries are struggling to keep up: the utilization rate reached 96.1%. Despite the sharp fall in the value of the barrel, the prices of the oil sector have had limited losses. Indeed, most large companies are strong enough to support a low price of crude oil.
US bank stocks did not follow the upward trend in Europe, with the European sector index retreating 1.1%. Numerous quarterly results published during the week were welcomed in several ways. Good surprises such as Société Générale and disappointments such as ING and Crédit Agricole. In the insurance sector, the quarterly results of Axa were very well received, but there was a slight disappointment by the Zurich Insurance and Allianz.