THE EUROPEAN STOCK MARKETS, EXCEPT LONDON, END DOWN
by Marc Angrand
PARIS (Reuters) – European stock markets, except London, closed on Tuesday sharply lower than Wall Street, where nervousness is mounting ahead of the release of the market’s heavyweight results, having survived the rebound that had marked the first half. of the session.
In Paris the CAC 40 lost 0.54% (34.81 points) to 6,414.57 points after rising to 6,535.92 in the morning and in Frankfurt the Dax lost 1.2% while in London the FTSE 100 gained 0.08% thanks to the good performance of mining and oil stocks.
The EuroStoxx 50 index fell by 0.96%, the FTSEurofirst 300 by 0.76% and the Stoxx 600 by 0.9% after gaining as much as 1%.
At the time of closing in Europe, Wall Street widened its losses, the Dow Jones lost 1.62%, the Standard & Poor’s 500 1.98% and the Nasdaq Composite 3.1%.
American investors, who had welcomed Twitter’s go-ahead to Elon Musk’s takeover bid at the end of the session on Monday, now favor prudence before the publication of the results of the largest capitalizations in the high-tech sector: Microsoft and Alphabet will present their after closing on Wednesday Meta and Qualcomm, Thursday Apple and Amazon.
Meanwhile, Microsoft lost 2.63%, Alphabet 3.27% and the S&P high-tech index 2.9%.
“Given the pattern of the markets, if only one of these tech companies posts below expectations, it can become dangerous because the downward slope is slippery,” said Julius de Kempenaer, senior technical analyst at StockCharts.com.
This nervousness related to the performance of “technicians” and their ability to justify their assessment adds to the renewed concern raised by the health situation in China, where Beijing is trying to avoid large-scale confinement, and the imminent rate hike. of interest from major central banks, led by the US Federal Reserve.
While nearly all progressed mid-session, most of the major European credit rating sectors ended the day lower. The most marked falls are for cars, whose Stoxx index loses 2.41%, for technology (-2.25%) and for banks (-2.25%).
On the rise, raw materials (+ 1.13%) and energy (+ 0.92%) benefited from the rebound in copper and oil prices.
In Paris, the biggest increase in SBF 120 is for the oil services group CGG (+ 3.77%), the biggest drop for Faurecia (-10.74%) after the suspension of the dividend decided by Forvia, all born from the acquisition of the German Hella.
Elsewhere in Europe, banks Santander and HSBC lost 6.79% and 5.53% respectively after their results, while shipping giant Maersk gained 3.17% after increasing its profit forecasts for the whole year.
The dollar continues to benefit both from its attractiveness as a safe haven asset and from the prospect of a rise in US interest rates, which allows it to hit its two-year high against a basket of benchmark currencies (+ 0.38%).
Conversely, the yuan is still affected by fears of a marked slowdown in Chinese growth and the euro widens its losses to 1.0657, not far from the lows of March 2020 (-0.50%).
Benchmark bond yields in Europe closed lower on the back of US Treasury yields, but remain close to recent highs as rising interest rates remain unchallenged.
That of the ten-year German Bund thus fell by almost four basis points to 0.814%, against a peak of 0.974% on Monday. The decline was limited by statements by Marin Kazaks, the governor of the Latvian central bank, who does not rule out three rate hikes by the European Central Bank (ECB) by the end of the year.
The 10-year US fell eight points to 2.7395%, but still shows nearly 40 points higher since the start of the month.
Still down earlier in the day after a roughly 4% drop on Monday, the oil market is back in green after promises to support the Chinese central bank’s economy.
Brent is gaining 2.76% at $ 105.14 a barrel and American light crude (West Texas Intermediate, WTI) is gaining 3.11% at $ 101.60.
(Written by Marc Angrand, with Bansari Mayur Kamdar and Devik Jain in Bangalore, edited by Jean-Michel Bélot)