EUROPEAN SCHOLARSHIPS END IN RED
by Marc Angrand
PARIS (Reuters) – European stock markets ended sharply on Wednesday and wiped out almost all of their gains from the day before, caught up by fears that inflation would force central banks to bring forward the start of the rate hike. interest.
In Paris, the CAC 40 lost 1.27% (83.16 points) to 6,493.12 points. In London, the FTSE 100 fell 1.15% and in Frankfurt, the Dax fell 1.46%.
The EuroStoxx 50 index ended down 1.3%, the FTSEurofirst 300 1.01% and the Stoxx 600 1.03%.
At the time of closing in Europe, Wall Street was also moving in the red, with the Dow Jones yielding nearly 1%, the Standard & Poor’s 500 0.8% and the Nasdaq Composite 0.3%.
Volatility on Wall Street, which had ebbed Tuesday, picked up again after new highs in both oil and gas prices in Europe, which encouraged bond yields to rise earlier in the day.
The macroeconomic context is fueling fears that central banks, starting with the US Federal Reserve, will be forced to start tightening their monetary policies more quickly than expected.
The central bank of New Zealand in fact raised its key rate on Wednesday for the first time in seven years. Its Icelandic and Polish counterparts have also tightened their policies, arguing the need to fight inflation.
“The markets are clearly in a delicate phase, held back by an accumulation of negative elements: the situation of Chinese real estate giant Evergrande, regulatory tightening in China, change in communication from central banks, decline in several economic indicators after a dynamic first half-year , global logistical tensions … and soaring energy prices “, summarizes Alexandre Baradez, head of market analysis at IG France, by evoking” fears about the margins of companies in certain sectors and therefore on the results to to come”.
OIL
If the oil market gave in to profit taking in reaction to the announcement of an increase in stocks in the United States, it had previously reached new highs of several years, still carried by the refusal of OPEC and its allies to amplify the increase in their production.
US light crude (West Texas Intermediate, WTI) thus rose to $ 79.78 per barrel, the highest since November 2014, and North Sea Brent to $ 83.47, an unprecedented level since October 2018.
At the time of the European close, Brent dropped 1.74% to 81.12 dollars and WTI 1.77% to 77.53.
Natural gas prices have also started to fall in Europe after all-time highs.
TODAY’S INDICATORS
In the United States, the private sector created 568,000 jobs in September according to the monthly ADP survey, a figure well above expectations (the Reuters consensus gave it at 428,000).
In Europe, orders to German industry fell more sharply than expected in August (-7.7%) and retail sales in the euro zone as a whole increased less than expected.
VALUES
The deterioration in market sentiment did not spare any sector in Europe, with the decline reaching or exceeding 2.5% for both distribution (-2.79%) and automotive (-2.50%) than for transport and leisure (-2.59%).
The biggest drop in EuroStoxx 50 is for Deutsche Telekom, which fell 5.37% after Goldman Sachs sold a block of shares worth € 1.58 billion.
On the upside, Tesco jumped 5.95% as the market welcomed the increase in its annual profit forecast.
CHANGES
Inflationary fears and their implications for the Fed’s strategy are benefiting the dollar, which appreciates 0.43% against a basket of benchmark currencies.
The euro falls back to $ 1.154, the lowest since July 2020.
RATE
Eurozone benchmark yields ended slightly lower after hitting new four-month highs: that of the ten-year German Bund rose in the morning to -0.147% before falling back to -0.182%.
The US bond market is once again dictating the trend: cheap buying pushes the yield on ten-year Treasuries down to 1.5119% after peaking at 1.573% at the very start of the day, its highest level since mid- June.
THE SITUATION ON THE MARKETS:
(Some data may show a slight lag)
THE CLOSURE IN
EUROPE
Indices Last Var. Var. % YTD
Points
Eurofirst 300 1,746.90 -17.78 -1.01% +13.69
%
Eurostoxx 50 4,012.65 -52.78 -1.30% +12.95
%
CAC 40 6,493.12 -83.16 -1.27% +16.96
%
Dax 30 14 973.3 -221.16 -1.46% + 9.14%
3
FTSE 6,995.87 -81.23 -1.15% + 8.29%
SMI 11,569.3 -17.61 -0.15% + 8.09%
9
The values to follow in Paris and
in Europe : [WATCH/LFR]
THE TREND A
WALL STREET
Indices Last Var. Var. % YTD
Points
Dow Jones 34,059.4 -255.23 -0.74% +11.28
4%
S & P-500 4,319.48 -26.24 -0.60% +15.00
%
Nasdaq 14,356.6 -77.23 -0.54% +11.39
1%
Nasdaq 100 14,613.7 -60.42 -0.41% +13.39
3%
Report of the session on Wall
Street: [.NFR]
“The Day Ahead” – Update on
next session on Wall Street [DAY/US]
CHANGES
Price Watch Var.% YTD
Euro / Dlr 1.1542 1.1596 -0.47% -5.49%
Dlr / Yen 111.33 111.45 -0.11% + 7.91%
Euro / Yen 128.50 129.25 -0.58% + 1.24%
Dlr / CHF 0.9281 0.9277 + 0.04% + 4.86%
Euro / CHF 1.0713 1.0760 -0.44% -0.87%
Stg / Dlr 1.3562 1.3629 -0.49% -0.81%
Index $ 94.3750 93.9750 + 0.43% -1.87%
GOLD
Veille Var course. % YTD
Spot Gold 1,761.00 1,759.96 + 0.06% + 16.08
%
RATE
Last Var. Spread / Bund
(pts)
Future Bund 169.65 -0.01
10-year Bund -0.18 -0.00
Bund 2 years -0.69 +0.00
10-year OAT 0.17 +0.00 +35.40
10-year Treasury 1.51 -0.02
Treasury 2 years 0.30 +0.01
OIL
Previous Price Var Var.% YTD
nt
Light gross US 77.52 78.93 -1.41 -1.79% + 26.65%
Brent 81.11 82.56 -1.45 -1.76% + 22.84%
(Report Marc Angrand)
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