CEMAC zone: recession could reach 6% according to BEAC

All the indicators are certainly not red. But most of the economic indicators in the six countries of the Economic and Monetary Community of Central Africa (CEMAC) are already found the Monetary Policy Committee (CPM) of the Bank of Central African States (BEAC) at the end of the second annual session on June 24, 2020 in Yaoundé.

Analyzing the situation in Central Africa, it emerges that in the short and medium terms, the CEMAC zone is affected by the health crisis and the fall in the prices of the main export products. "

"In the first half of 2020, the revival of productive activities was slowed down in the sub-region by the disruption of supply circuits for imported products as well as by the restrictive measures adopted by the various governments to contain the effects of the pandemic. Although it is premature for the moment to fully grasp the impact of COVID-19 on national economies, it is already anticipated during this first semester a drop in production as well as a det…

Good start to the month for equities, lull in US-China trade

The main European stock markets rose sharply on Monday in the wake of Asian markets, the absence of severe American reprisals against China stimulating the appetite for assets deemed risky.

Around 7:40 GMT, the Parisian CAC 40 index gained 1.6% to 4,770.39 points, close to a peak of around three months, and in London, the FTSE took 1.67%.
 
Good start to the month for equities, lull in US-China trade

The EuroStoxx 50 index for the euro zone gained 1.03%, the FTSEurofirst 300 advanced by 1.15% and the Stoxx 600 by 0.98%.

On this Whit Monday, the Frankfurt and Zurich stock exchanges are closed.

European markets ended sharply down on Friday, fearing a further escalation of trade tension between Washington and Beijing after the Chinese parliament passed a new security law in Hong Kong.

If he ordered his administration to revoke the special status that the United States grants to Hong Kong - a decision that was expected - Donald Trump did not, however, relaunch the trade war with China. Some market participants feared that the President would question the first phase of the trade deal.

"Investors are reacting positively to this (...) but just because Trump did not go to the trade showdown with the Chinese government does not mean that he will do so later. After all, he has a presidential election at the end of the year, so he could turn against China to try to score political points, "said David Madden of CMC Markets in a note titled" Trump barks more let him not bite ”.

Investors can once again focus on the global economic recovery as the coronavirus epidemic continues to show signs of slowing and deconfinement continues, including in Moscow.

The markets will follow the publication in the morning of the May surveys of purchasing managers (PMI) in May on manufacturing activity, which rose unexpectedly in China, returning to the growth zone, at 50.7 against 49.4 in April.


VALUES

All European sectors are up: the Stoxx banks index takes 2.38%, that of basic resources gains 2.37% and transport and leisure 2.2%.

In Paris, where all the CAC 40 stocks are in the green, Renault and PSA gained 4.28% and 4.61% respectively. The strongest growth came from shopping center operator Unibail-Rodamco-Westfield (+ 7.04%), which is still benefiting from the gradual reopening of stores.

The prospect of a resumption of tourism activity allows IAG, parent company including British Airways, to climb to the top of the Stoxx 600, with a gain of 6.04% in London.

Against the trend, the title Europcar Mobility lost 3.81%, at the bottom of the pack of the SBF 120, sanctioned by the drop in recommendation from Morgan Stanley to "weighting online".

IN ASIA

The unexpected improvement in manufacturing activity in China and the more lenient than expected sanctions against the United States against China favor the marked recovery of Asian stock markets.

On the Tokyo Stock Exchange, the Nikkei gained 0.84%, to a closing high since late February.

The SSE Composite Index on the Shanghai Stock Exchange rose 2.2% and the CSI 300, which includes the main capitalizations of mainland China, gained 2.7%, its best performance in a session since March 2.

In Hong Kong, the Hang Seng index jumped 3.42%.

A WALL STREET

On Friday, the Dow Jones Index fell 0.07%, the S & P-500, the largest and main benchmark for investors, gained 0.48% while the Nasdaq Composite advanced 1.29%.

Futures on these indices suggest an opening up 0.2% to 0.5% for Monday.

CHANGES / RATES

The drop in risk aversion is putting pressure on safe havens like sovereign bonds and the dollar, which lost 0.37% against a basket of six other international currencies.

The euro rallied 0.34% to 1.1136 dollars, close to a plus since mid-March reached briefly in session at 1.115.

On the bond market, the renewed risk appetite is reflected in a rise in yields: that of 10-year Treasuries almost three basis points to 0.6705% and that of the Bund of the same maturity gains more than three points at -0.417%.,



OIL

Oil prices are in slight decline, under the blow of profit taking after the performances of last month: the barrel of Brent lost -0.16% to 37.78 dollars and that of American light crude (West Texas Intermediate, WTI) -0.25% to 35.4 dollars.

METALS

Concerns over violence in several major US cities after the death of an African-American man last week during his arrest by Minneapolis police have contributed to the rise in gold, the ultimate safe haven, investors say.

The ounce of the precious metal gained 0.79% to 1,739.95 dollars, evolving to a high of ten days.