Europe in the red, risk aversion dominates

PARIS (Reuters) – The main European stock markets fell in early trading on Friday the day after Wall Street’s sharp decline and a few days before the highly anticipated meeting of the Federal Reserve against a backdrop of uncertainties over inflation and the economic recovery .

In Paris, the CAC 40 lost 1.44% to 7,090.76 points around 09:10 GMT. In London, the FTSE 100 lost 0.99% and in Frankfurt, the Dax fell 1.53%.

The EuroStoxx 50 index is down 1.49%, the FTSEurofirst 300 1.4% and the Stoxx 600 1.38%.

The Wall Street indices ended sharply lower on Thursday and this decline, after having won the Asian markets, is spreading to Europe.

Investors are nervously awaiting the meeting of the Fed’s Monetary Policy Committee next Tuesday and Wednesday, from which they await indications on the pace of monetary tightening to come.

For now, the broad Stoxx 600 index has lost around 1% since the beginning of the week and the CAC 40 has lost 0.7%.

The Stoxx technology index in Europe lost 1.99% in the aftermath of the Nasdaq’s 1.3% decline, indicated by futures contracts down 0.6% on Friday at the open.

Global streaming giant Netflix’s 20% drop in after-hours trading on Thursday in response to disappointing new subscribers to its services in the fourth quarter is weighing on the trend.

It was the basic resources sector (-2.9%) that showed the biggest drop in the morning.

Rio Tinto sells 3.12% after Serbia halted a $2.4 billion lithium mine project for environmental reasons.

Stellantis fell 3.83% to 18.064 euros after the sale by Dongfeng Motor of a 1.28% stake in the capital of the Franco-Italian manufacturer, to 18.30 euros per share.

Among the biggest drops in the Stoxx 600, Siemens Energy dropped 10.72% after lowering its annual forecast, its wind subsidiary Siemens Gamesa (-14.93%) having issued a new warning on its 2022 profit.

On the rise, Remy Cointreau gained 1.29%, supported by the raising of HSBC’s advice to “buy”, and Soitec resumed 2.69% after falling 18.2% the day before.

(Laetitia Volga, edited by Blandine Hénault)

Source link -87