BCEAO releases $ 6 billion for West African economies

The BCEAO has just made a liquidity injection of 3350 billion FCFA ($ 6 billion) at a fixed rate of 2% in favor of several banks of the UMOA. A total of 87 financial institutions participated in the operation. The Central Bank of West African States (BCEAO) made a further injection of liquidity to its member countries last week. In total, 3350 billion FCFA ($ 6 billion) were disbursed by the institution.

During the auction on September 14, 87 banks in the sub-region obtained an injection of liquidity at a fixed rate of 2%. With more than 1000 billion FCFA ($ 1.8 billion), it is the Ivory Coast which obtained the most important financing, ie 31% of the funds injected.

It is followed by Senegal with more than 580 billion FCFA ($ 1 billion), Mali with 466 billion FCFA (835 million $), Benin with 434.5 billion FCFA (777 million $) and Burkina Faso with 318 billion FCFA. ($ 569 million). Niger with 241.6 billion FCFA ($ 432 million), Togo with 219 billion FCFA (…

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.

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