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Europe bounces back with commodities and earnings – 2022-02-07 18:43


EUROPEAN STOCK MARKETS REBOUND AT CLOSING

by Claude Chendjou

PARIS (Reuters) – European stock markets rebounded at the close on Monday, while on Wall Street, the trend was hesitant at mid-session after a week of turbulence in equity markets linked to fears of a tightening. currency and geopolitical tensions.

In Paris, the CAC 40 ended with a gain of 0.83% to 7,009.25 points. The British Footsie gained 0.76% and the German Dax 0.71%.

The EuroStoxx 50 index advanced by 0.83%, the FTSEurofirst 300 by 0.75% and the Stoxx 600 by 0.68%.

The positive trend on the equity markets was carried on Monday by a new burst of quarterly results from companies deemed encouraging, which took precedence over concerns about a rise in rates this year in the euro zone and from next month in the United States. United States.

On the political front, Russian President Vladimir Putin received Emmanuel Macron on Monday for an interview devoted to the situation on the borders of Ukraine, with the hope of “avoiding war”.

Regarding Iranian nuclear power, the European Union confirmed on Monday the resumption of international negotiations.

On the economic side, industrial production in Germany fell in December by 0.3% due to bottlenecks in the supply chain, according to official data released on Monday.

In China, activity in the services sector grew at its slowest pace in five months, to 51.4 in January, shows the PMI index calculated by Caixin/Markit published on Monday.

VALUES IN EUROPE

In Europe, the rebound was driven mainly by the basic resources sector (+1.7%) in the wake of the rise in particular in nickel (+2.6%) and aluminum (+1.4%). ), due to expectations of strong demand in China combined with supply concerns.

ArcelorMittal advanced 4.1% and Thyssenkrupp 1.4%. The leading European copper producer Aurubis (+3.1%) benefited from the confirmation of its annual objectives after a quarterly profit up 85%.

On the downside, the utilities (-0.9%) and real estate (-0.5%) sectors weighed. Unibail-Rodamco-Westfield fell by 1.8% and Kl├ępierre by 0.6%

In business news, Faurecia took 0.9% after the presentation of the financial objectives of the new entity formed with Hella, which aims for 300 to 400 million euros in sales synergies by 2025.

Specialists in retirement homes Orpea (-4.5%) and Korian (-2.1%), targeted by allegations of ill-treatment in nursing homes, have suffered a further fall despite their denials.

AT WALL STREET

At the close in Europe, the Dow Jones was stable, the Standard & Poor’s 500 fell 0.1% and the Nasdaq 0.3%, with corporate results and M&A transactions providing the only support for the day.

Values, Hasbro lost 1.5% despite the publication of a turnover and a quarterly profit above expectations. The toy and game maker said it expects costs to continue rising this year.

Tyson Foods, for its part, jumped nearly 10.3%, the American agri-food group having published a quarterly turnover better than expected.

On the acquisitions side, Spirit Airlines is up 12.7% after the announcement of a merger agreement with Frontier Group Holdings (-0.3%), while Peloton Interactive soars by 17%, driven by a brand of interest from Amazon (+1%) and Nike (-0.2%), according to a source and press information.

From a sector perspective, energy (+0.9%) is one of the rare compartments to post significant gains.

CHANGES

The dollar is stable against a basket of benchmark currencies after its rebound on Friday following four consecutive sessions of decline.

The euro, down 0.2%, is trading at $1.1427, after hitting a three-week high of $1.1483. The single European currency is losing ground after comments by Martins Kazaks, a member of the Governing Council of the European Central Bank, who deemed it unlikely that the institution’s rates would change as early as July.

RATE

In the bond market, the yield on ten-year Treasuries is also stable after the sharp rise recorded on Friday in response to the surprise employment figures in the United States, which allowed it to reach a two-year high.

In Europe, rates continued to rise in the wake of the increase observed since last Thursday following the announcements of the ECB, which underlined that inflationary risks were increasing.

The ten-year German Bund yield ended up 1.5 basis points at 0.222% after hitting a three-year high, while that of its Italian counterpart, the most affected by the prospect of a rise the cost of credit in the coming months, is trading at 1.808%.

The ten-year OAT rate gained 2.3 points to 0.670%.

OIL

Oil prices, which have peaked since October 2014, are on a downward trend, penalized by signs of progress in international discussions on Iranian nuclear power, which could lead to a possible lifting of sanctions affecting Tehran’s crude exports.

A barrel of Brent fell 0.5% to 92.8 dollars and US light crude (West Texas Intermediate, WTI) 1% to 91.4 dollars.

(Report Claude Chendjou, edited by Tangi Salaun)



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