Shares fall and yields rise before the Fed – 05/04/2022 at 18:01

Shares fall and yields rise before the Fed - 05/04/2022 at 18:01

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EUROPEAN STOCK EXCHANGES END IN RED

EUROPEAN STOCK EXCHANGES END IN RED

by Marc Angrand

PARIS (Reuters) – European stocks closed red on Wednesday and Wall Street fell amid a session ahead of a US Federal Reserve decision that is expected to accelerate monetary policy tightening by raising key interest rates. at half a point.

In Paris, the CAC 40 lost 1.24% (80.5 points) to 6,395.68 points, the lowest level since March 15. In London, the FTSE 100 fell 0.84% ​​and in Frankfurt, the Dax fell 0.49%.

The EuroStoxx 50 index lost 0.96%, the FTSEurofirst 300 1% and the Stoxx 600 1.08%.

On the New York Stock Exchange, at the close of trading in Europe, the Dow Jones fell 0.27%, the Standard & Poor’s 500 0.6% and the Nasdaq Composite 1.54%.

The Fed is set to announce its monetary policy committee at 18:00 GMT, and all economists polled by Reuters expect it to raise its “fed funds” target by 50 basis points over a range from 0.75%. to 1%, which would be the largest increase since May 2000.

It could also set a timetable and conditions for reducing its balance sheet, and its chairman, Jerome Powell, could give a press conference on what the central bank is prepared to do to stem rising inflation. level of the last 40 years.

Faced with the prospect of further interest rate hikes, 59.4% of investors surveyed by the American Individual Investors Association believe that stock prices will fall over the next six months, the highest level since March 2009.

If the companies’ results support the US indexes on Wednesday after the good publications of Advanced Micro Devices (+ 1.23%) and Starbucks (+ 5.95%), this support was less supported in Europe, several companies have denied expectations.

VALUES

In Paris, the EDF sold 2.47% after being cautious about its profit prospects and reporting an increase in the risks associated with the Hinkley Point project in the UK.

Danish jeweler Pandora lost 2.1% after stressing uncertainty about its prospects.

On the rise, the Belgian industrial materials group Umicore jumped 10.35%, the best performance of the Stoxx 600, after Bloomberg reports on the interest of the South Korean LG Chem for possible acquisitions abroad.

Ubisoft received 8.97% in response to a Dealreporter article that the Guillemot family, its largest shareholder, could join forces with a private equity group to launch a bid to prevent a hostile takeover.

THE INDICATORS OF THE DAY

In the United States, the private sector created 247.00 jobs in April, according to the ADP monthly survey, a number lower than expected, and the growth of activity in the services sector slowed down, the ISM industry index returned to 57, 1 after from 58.3 in March.

In the euro area, private sector growth accelerated last month, according to the final results of S&P Global surveys: the composite PMI rose to 55.8 in April from 54.9 in March.

Retail sales in the euro area also fell more sharply than expected in March, by 0.4% over a month.

CHANGES

The dollar, whose volatility has eased in recent days after a period of rapid rise, is leaving some ground in anticipation of the Fed announcements: the index that measures its evolution against a benchmark is falling 0.14%.

The euro, on the other hand, rose 0.26% to $ 1.0547.

The pound is practically stable against the dollar, but falls slightly against the euro (-0.28%) on the eve of the Bank of England (BoG) monetary policy meeting, which is expected to conclude with a new interest rate hike.

PRICE

Declining after the publication of the ADP monthly survey, the yield on ten-year US government bonds rose again and exceeded the symbolic limit of 3% for the third consecutive meeting, a move that was in line with the Fed’s expectations.

The two-year period, even more sensitive to changes in key interest rates, is at its highest level since December 2018, at 2.8093%.

In Europe, the momentum given by the US market was compounded by the influence of statements by Isabel Schnabel, a member of the Executive Board of the European Central Bank (ECB), in favor of an initial interest rate hike in July: German ten-year yield rises at 1.036%, its highest level since 2015, before returning to 0.976%.

OIL

The oil market is benefiting from the European Union’s announcement of its intention to phase out Russian crude oil imports gradually within six months, a factor that outweighs fears of a deterioration in Chinese demand.

Brent rose 3.25% to $ 108.38 a barrel and US West Texas Intermediate (WTI) rose 3.41% to $ 105.90.

FOLLOWS ON THURSDAY:

MARKET SITUATION:

(Some data may show a slight shift)

THE FENCE INSIDE

EUROPE

Indicators Last Var. Var. % YTD

Points

Eurofirst 300 1729,93 -17,44 -1,00% -8,48%

Eurostoxx 50 3724.99 -36.20 -0.96% -13.34

%

CAC 40 6,395.68 -80.50 -1.24% -10.59

%

Dax 30 13,970.8 -68.65 -0.49% -12.05

2%

FTSE 7493.45 -67.88 -0.90% + 1.47%

SMI 11880.2 -121.64 -1.01% -7.73%

4

The values ​​to follow in Paris and

in Europe : [WATCH/LFR]

THE TRENDS FOR

WALL STREET

Indicators Last Var. Var. % YTD

Points

Dow Jones 33129.1 +0.33 + 0.00% -8.83%

2

S&P 500 4163.53 -11.95 -0.29% -12.64

%

Nasdaq 12419.5 -144.22 -1.15% -20.62

3%

Nasdaq 100 12946.6 -143.23 -1.09% -20.67

7%

Minutes of the session on the wall

Road: [.NFR]

“The Day Ahead” – Update on

next meeting on Wall Street [DAY/US]

CHANGES

Waiting price Var.% YTD

Euro / Dlr 1.0545 1.0520 + 0.24% -7.24%

DLR / Yen 129.97 130.10 -0.10% +12.96

%

Euro / Gen 137.08 136.92 + 0.12% + 5.19%

DLR / CHF 0.9826 0.9788 + 0.39% + 7.72%

Euro / CHF 1.0364 1.0295 + 0.67% -0.05%

Stg / Dlr 1.2491 1.2498 -0.06% -7.67%

Index $ 103,319 103,465 -0.14% + 7.43%

0 0

GOLD

Var. % YTD

Gold Spot 1866.49 1867.79 -0.07% +23.04

%

PRICE

Last Var. Spread / Bund

(points)

Future Bunds 153.25 -0.42

Ten-year bundles 0.97 -0.01

Bundles of 2 years 0.27 -0.01

10 years OAT 1.51 -0.01 +53.20

10 years Public 2.97 +0.02

2 years Public 2.81 +0.04

OIL

Previous value Var Var.% YTD

nt

US light crude 105.87 102.41 +3.46 + 3.38% + 72.96%

Brent 108.36 104.97 +3.39 + 3.23% + 64.11%

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

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