THE MAIN EUROPEAN STOCK EXCHANGES DECLINE AT THE BEGINNING OF THE SESSION
by Marc Angrand
PARIS (Reuters) – The main European stock markets fell at the start of the session on Wednesday in the wake of Wall Street and Tokyo after statements by a leader of the Federal Reserve underlining the need for a rapid tightening of monetary policy, to which add the prospect of new sanctions against Russia and disappointing economic indicators.
In Paris, the CAC 40 lost 0.66% to 6,601.39 points around 07:45 GMT. In London, the FTSE 100 lost 0.1% and in Frankfurt, the Dax dropped 0.78%.
The EuroStoxx 50 index is down 0.9%, the FTSEurofirst 300 0.2% and the Stoxx 600 0.56%.
Fed Governor Lael Brainard said on Tuesday she expects the central bank to return to a “more neutral” monetary policy by the end of this year with a combination of rate hikes and a rapid reduction in its balance sheet. .
His remarks were all the more striking as Lael Brainard is usually classified among the “doves” of the institution. “If it tipped over to the hawks’ side, the markets need to take that into account and that’s what they did,” said Jeffrey Halley, market analyst at Oanda.
Tuesday’s session on Wall Street was indeed marked by the rise in Treasury bond yields to the highest in nearly three years. US2YT=RR> and the decline on Wall Street, led by technology (-1.26% for the Standard & Poor’s 500, -2.35% for the Nasdaq) and in Tokyo, the Nikkei lost 1.58%.
Investors await the minutes of the Fed’s March meeting at 6:00 p.m. GMT and will also monitor the possible announcement of new sanctions against Russia, which could weigh on global economic activity.
In China, the Caixin Services Purchasing Managers’ Index reflects a marked contraction in activity in March as a result of the resurgence of the COVID-19 epidemic, and in Germany, industrial orders fell much more than expected in February (-2.2%).
Among the most marked sectoral declines at the start of the session, the automotive compartment dropped 1.76%, raw materials 0.59%, high technologies 1.2%.
In Paris, Stellantis lost 2.75%, ArcelorMittal 1.04%, Worldline 1.82%.
(Written by Marc Angrand, edited by Jean-Michel Bélot)