Europe continues its fourth consecutive meeting in the red
By Claude Chenjou
PARIS (Reuters) – European stocks fell after a volatile session on Wednesday, while Wall Street fell in early morning trading in New York as investors remained cautious after several major U.S. banks gave pessimistic forecasts about the evolution of the United States economy.
In Paris, the CAC 40 index decreased by 0.41% and ended at 6660.59 points. The British Footsie lost 0.43% and the German Dax lost 0.57%.
The EuroStoxx 50 index fell by 0.46%, and the FTSEurofirst 300 fell by 0.64%. The Stoxx 600 fell 0.62% for a fourth consecutive session in the red.
China’s announcement of ten new measures to ease health restrictions following unprecedented protests against its “zero COVID” policy has not been enough to revive appetite for risk assets.
A week ahead of the monetary policy meeting of the US Federal Reserve (FED) and the European Central Bank (ECB), stock markets were dominated by fears about rates and the evolution of the economy.
The Bank of Canada in particular surprised on Wednesday by raising interest rates by 50 basis points to 4.25%, the highest level in nearly 15 years. But he signaled that the period of monetary tightening in Canada is coming to an end soon.
In terms of economic forecasts, the leaders of Goldman Sachs, JPMorgan Chase and Bank of America warned on Tuesday that inflation will weigh on consumer purchasing power next year and that a recession is likely in the US, which remains cautious. financial markets.
The CBOE index, which measures volatility, rose to a two-week high of 23 points in the US session, and its European equivalent gained 5.85% to 22.02 points.
VALUES IN EUROPE
Among the main sectors of the European size, the health division stood out with gains of 0.7% thanks to Sanofi (+6.10%) and GSK (+7.53%), which benefited in particular from the court ruling on the stomach treatment Zantac. acidity is accused of being carcinogenic.
On the other hand, the basic resources division (-1.66%) and the energy division (-1.96%) were punished by fears about the global economy: TotalEnergies (-2.04%), BP (-2.24%) and Eni (- oil companies). -1.51%, as well as mining groups Anglo American (-1.639%), Glencore (-2.84%), Rio Tinto (-1.12%) and Eramet (-1.34%) ended in the red.
Elsewhere, Airbus closed down 2.2% after announcing the cancellation of its aircraft delivery forecast for this year, while Renault closed down 0.62% after announcing the departure of Clotilde Delbos, general manager of the group’s new mobility brand.
ON WALL STREET
At the close in Europe, the Dow Jones was down 0.03%, the Standard & Poor’s 500 was down 0.21% and the Nasdaq was down 0.54%.
Only four of the S&P-500’s 11 major sectors are in the green, with health care (+0.63%) leading the way, while new technology (-0.67%) posted the biggest decline.
Tesla fell 3.90% for the third session in a row, still weighed down by fears of production cuts at its Shanghai factory.
Apple fell 1.38% as Morgan Stanley cut its target for December iPhone shipments due to setbacks in China by Foxconn, the group’s apple subcontractor.
SHOWS OF THE DAY
Economic growth in the euro zone was stronger than previously announced at 0.3% in the second quarter and 2.3% year-on-year in the third quarter, according to Eurostat data.
Industrial production in Germany fell by 0.1% in October.
France’s trade deficit reached -12.15 billion euros in October.
China’s imports and exports fell more sharply than expected in November amid weaker global demand and the COVID-19 outbreak, according to official data.
In foreign currencies, the dollar fell 0.35% against a basket of benchmark currencies as traders weighed uncertainties affecting the economy.
The volatile euro rose to $1.0499 (+0.29%) after falling in the morning.
European bond yields fell after a CBA survey showed consumer inflation expectations in the Eurozone 12 months ahead were raised again in October, while those waiting three years were unchanged.
The ten-year German Bund yield fell 1.2 basis points to 1.78%, while the two-year German Bund yield fell 4.1 basis points to 2.01%.
The yield on ten-year US government bonds, in turn, decreased by about five points to 3.46%, and two-year 7.3 points to 4.35%.
Oil prices fell due to an unexpected increase in U.S. crude inventories as uncertainties over the economy weighed on demand.
Brent fell 1.61% to $78.07 a barrel, having settled at $77.70, its lowest since Jan. 3.
American light oil (West Texas Intermediate, WTI) fell by 2.06% to $72.72 per barrel.
(Writing by Claude Chendjou, Editing by Kate Entringer)