Equities remain penalized by economic fears – 05/09/2022 at 10:26


EUROPEAN STOCK MARKETS DOWN MODERATELY AT THE BEGINNING OF THE SESSION

PARIS (Reuters) – The main European stock markets are trading moderately lower at the start of trading on Monday as fears over inflation, monetary policy, the war in Ukraine and the health crisis in China remain at the forefront. major world markets.

In Paris, the CAC 40 lost 0.44% to 6,230.86 points around 07:50 GMT. In London, the FTSE 100 lost 0.18% and in Frankfurt, the Dax fell 0.2%.

The EuroStoxx 50 index fell by 0.47%, the FTSEurofirst 300 by 0.45% and the Stoxx 600 by 0.54%.

Futures on major US indices suggest a decline of 0.71% to 1.02%.

The week that opens will be animated in particular on Wednesday by the publication of monthly consumer price figures in the United States, which will not fail to fuel the debates on the pace of rate hikes by the Fed.

The prospect of aggressive monetary tightening in the United States influences bond markets: the yield on ten-year Treasury bills gains more than five basis points to 3.1766%, the highest since November 2018, and its German equivalent hit its highest level since August 2014 at 1.163%.

Concerns over the economic impact of the COVID-19 crisis in China are growing as authorities in Shanghai have tightened health restrictions over fears of a rebound in infections, multiple sources reported.

As a further illustration of the risks linked to health measures in the country, exports grew in April at their slowest pace since June 2020 (+3.9% over one year) while imports remained stable.

On the stock market, the raw materials sector lost 1.92%, the largest drop at the start of the session, while iron ore prices in China fell sharply due to concerns about demand.

ArcelorMittal fell by 2.66% in Paris and Rio Tinto by 2.46% in London.

Infineon fell 0.13% after the increase, “widely expected” according to Jefferies, of its annual turnover target.

(Written by Laetitia Volga, Editing by Kate Entringer)



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