Photo of traders in London, England
European stock markets ended lower on Friday, with investors limiting their exposure to risky assets, concerned about developments in the Israeli-Palestinian conflict.
In Paris, the CAC 40 dropped 1.52% to 6,816.22 points, while the German Dax lost 1.64% and the British Footsie 1.3%.
The EuroStoxx 50 index ended the session down 1.61%, compared to 1.31% for the FTSEurofirst 300 and 1.36% for the Stoxx 600.
Over the week, the CAC 40 fell by 2.68%, its biggest drop since the beginning of July, and the Stoxx 600 posted a drop of 3.1%, the biggest decline since mid-March.
Tensions in the Middle East took precedence on Friday over concerns about rates in the United States, as Israel prepares to invade the Gaza Strip in an increasingly tense regional context.
Risk aversion is such that sovereign yields are declining, after the US 10-year hit a record since 2007 earlier in the session, driven higher by restrictive comments from Jerome Powell.
Gold has reached a three-month record price, while safe-haven currencies like the dollar and the Swiss franc are sought after by investors.
Markets are in fact having to deal with an increasingly complex environment: Federal Reserve Chairman Jerome Powell said Thursday that if higher yields decrease “at the margin” the need for the Fed to raise its rates again rate, the resistance of the American economy required close monitoring.
Corporate results released so far are also not enough to improve investor sentiment, as figures released by Tesla, one of the seven companies that have contributed the most to the performance of US stocks this year, have disappointed investors. . The resumption of trade tensions between China and the United States weighs on the outlook, while Chinese activity continues to face the slowdown in real estate: Country Garden, the largest private developer in China, defaulted this week on its debt offshore.
The central bank meetings expected over the next two weeks also encourage caution, with the European Central Bank announcing its decision on Thursday October 26, and the Fed announcing its decision on November 1, in a context of a rise in energy prices which could revive inflationary pressures.
RATE
Yields are falling, with bond securities benefiting from the demand for safe assets to reduce portfolio risk in an uncertain context.
At the close of the European interest rate markets, the ten-year Treasury yield lost 8.9 bp to 4.8988%, while the two-year rate fell 10 bp to 5.071%.
The German ten-year yield dropped 4.4 bps to 2.883%, while that of the two-year rate fell 8.8 bps to 3.176%.
VALUES
L’Oréal dropped 1.54% after announcing Thursday evening that organic growth in its turnover in the third quarter was below expectations, due in particular to a decline in sales in Asia. The fall in the stock took with it the luxury sector, which lost 0.69%, with Kering, Hermès and LVMH dropping 1.91%, 1.54% and 0.98% respectively.
Vivendi gained 2.88%, at the top of the CAC40, after publishing a turnover higher than expectations in the third quarter, driven by the growth of its Canal+ and Havas divisions.
Bolloré lost 0.69% due to a 7% decline in its quarterly turnover.
Tomra Systems plunged 22.59%, trailing the STOXX 600, after the Norwegian sustainable technology company’s third-quarter results fell short of expectations.
A WALL STREET
Wall Street retreats at closing time in Europe, under pressure from a clear reduction in risk appetite.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.4% for the Dow Jones, compared to 0.82% for the Standard & Poor’s 500 and 1.4% for the Nasdaq. Composite.
CHANGES
The dollar is eroding under the pressure of rising oil, but remains near its one-year high. The dollar fell 0.08% against a basket of reference currencies, while the euro gained 0.12% to 1.0592 dollars, and pound sterling 0.08% to 1.2153 dollars.
OIL
Oil is advancing, with markets fearing an escalation of the conflict in the Middle East which would have an impact on the region’s oil supply.
Brent rose by 1.01% to $93.31 per barrel, with light American crude (West Texas Intermediate, WTI) strengthening by 0.88% to $90.16.
(Written by Corentin Chappron, edited by)