PARIS (Reuters) – The main European stock markets are in the red on Wednesday morning due to uncertainties over the expected pace of easing by central banks, which is causing tensions in the bond compartment.
In Paris, the CAC 40 lost 0.67% to 8,003.45 points around 07:40 GMT. In London, the FTSE 100 lost 0.11% and in Frankfurt, the Dax fell by 0.27%.
The EuroStoxx 50 index fell by 0.45% and the FTSEurofirst 300 by 0.21%. The Stoxx 600 lost 0.43%, all its main sectors being in the red, with the exception of energy (+0.68%), which benefits from the prospect of a status quo on Sunday on production of OPEC+.
Futures contracts on Wall Street predict a drop of 0.43% for the Dow Jones, 0.42% for the Standard & Poor’s 500 and 0.38% for the Nasdaq the day after a session in scattered order.
In the bond market, the yield on ten-year US Treasury bonds, which stands at 4.5718%, has reached a nearly four-week high, while its German equivalent climbs more than four basis points, to 2.629%, to a one-month high.
Traders assess the probability of a rate cut by the American Federal Reserve (Fed) by September at only 44%, according to the CME Group’s FedWatch barometer, while in the euro zone, if a first cut is acquired for on June 6, uncertainty remains beyond this deadline.
German inflation figures for the month of May, due at 12:00 GMT, as well as the monthly PCE price index in the United States, due on Friday, will help alleviate or reinforce fears about rates.
In values, stocks linked to new technologies such as Soitec (-1.86%), STMicroelectronics (-1.21%), Dassault Systèmes (-0.65%) and Infineon (-0.56%) are neglected.
Renault takes 2.94%, after reaching its highest since the end of 2019, Goldman Sachs having raised its recommendation to “buy” on the car manufacturer.
International Distributions Services (IDS) gained 2.86%. Royal Mail’s parent company is preparing to recommend a firm offer from Czech billionaire Daniel Kretinsky, who already holds 27.6% of the company’s capital, according to a source close to the matter.
Anglo American fell by 1.50% while BHP announced on Wednesday that it needed more time to negotiate the takeover of the British mining group.
Delivery Hero (-4.5%) is at the bottom of the Stoxx 600 after Morgan Stanley lowered its recommendation to “line weighting”.
(Written by Claude Chendjou, edited by Blandine Hénault)
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