The rise in equities again slowed by concerns – archyworldys

by Marc Angrand

PARIS (Reuters) – European stock markets ended in the green on Monday but below their daily highs and Wall Street moved in a scattered order at mid-session, concerns related to inflation and taxation among others gradually resuming their rights after an optimistic start to the day.

In Paris, the CAC 40 gained 0.2% (13.16 points) to 6,676.93 points after rising to 6,722. The FTSE 100 in London advanced 0.58% and the Dax in Frankfurt by 0.59%.

The EuroStoxx 50 index ended up 0.46%, the FTSEurofirst 300 gained 0.29% and the Stoxx 600 added 0.29%.

At the time of the close in Europe, the US Dow Jones gained 0.8% but the Standard & Poor’s 500 was only up 0.13% and the Nasdaq Composite was down 0.44% after taking up 0.78% , concerned, among other things, by the Congressional Democrats’ plan to raise the income tax rate from 21% to 26.5%.

After a week animated by doubts about central bank strategies, today’s session started on a more positive tone but the uncertainties of the moment have gradually resumed their rights, whether it is about the supervision by Beijing activities in the Chinese high-tech sector, the risk that German political parties will take months to form a government after the September 26 elections, or that of a prolonged acceleration in inflation.

In the United States, the monthly consumer price figures expected on Tuesday could revive doubts about the Fed’s attitude eight days before its monetary policy decisions.

In Europe, Isabel Schnabel, one of the members of the executive board of the European Central Bank (ECB), declared that the latter remained ready to act if inflation exceeded 2% for a long time.

At the same time, the inflation rate “five years in five years” in the euro zone, a barometer of market expectations, reached 1.82%, its highest level since mid-2015.

VALUES

The sectors of the European quotation sensitive to the evolution of growth prospects drove the rise in Europe: that of oil and gas gained 2.76%, that of the automobile 1.71%, that of banks 1, 76%.

In the leading pack of the Parisian CAC 40, TotalEnergies gained 3.06%, Renault 2.61% and BNP Paribas 2.27%.

In contrast, the distribution compartment fell by 0.95%, penalized among other things by the decline of 2.9% of the German Zalando after a gain of almost 9% in less than a month.

In Paris, the most dramatic drop of the day is for Valneva, which fell 41.57% after the UK terminated the COVID-19 vaccine supply contract with the laboratory.

CHANGES

The dollar hit its highest level in two weeks before giving up gains against other major currencies, as traders continue to anticipate the Fed’s September 22 announcement of an upcoming cut in asset purchases.

The euro fell in session to $ 1.1771, its lowest level since August 27, but had climbed back to 1.1810 by the time of the European close.

RATE

Eurozone benchmark bond yields ended virtually unchanged in a quiet session that contrasted with the sharp swings of last week.

That of the ten-year German Bund ended at -0.329% and its French equivalent at 0.001%.

In the US market, the ten-year fell again and fell almost two basis points to 1.3208%.

OIL

The oil market continued to rebound, helped by the slow resumption of production in the Gulf of Mexico after the passage of Hurricane Ida.

Brent gained 0.85% to 73.54 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.13% to 70.51 dollars.

METALS

The price of aluminum reached 3,000 dollars per tonne for the first time since 2008, driven by the limitation of Chinese production, the world’s largest producer, which raises fears of tensions on the market

(Report Marc Angrand, edited by Jean-Michel Bélot)