PARIS (Reuters) – European stock markets lost further ground on Wednesday, as the stronger-than-expected rise in producer prices in the United States stifled the tentative rebound at the start of the session, especially as British bond markets remain under pressure and that oil is once again suffering from fears of recession.
In Paris, the CAC 40 fell 0.25% (14.73 points) to 5,818.47 points while gaining 0.67% at its highest. In London, the FTSE 100 was down 0.86% and in Frankfurt, the Dax was down 0.39%.
The EuroStoxx 50 index ended down 0.26%, the FTSEurofirst 300 0.34% and the Stoxx 600, which took 0.45% in the morning, fell 0.53%, its sixth drop. consecutive.
At the time of the close in Europe, Wall Street was moving in the green after a hesitant start to the session, the Dow Jones winning 0.5%, the Standard & Poor’s 500 0.3% and the Nasdaq Composite 0.22%.
The rise in US producer prices stood at 8.5% over one year in September, while the Reuters consensus was expecting 8.4%. This figure nevertheless marks a deceleration compared to August, when the rise reached 8.7%, and the index excluding energy and food remained unchanged for the first time since May 2020.
These figures “have some relief for consumers faced with the galloping inflation of products on store shelves”, commented Christopher Rupkey, chief economist of FWDBONDS in New York.
“The Fed’s war on inflation isn’t won yet,” he adds, “but at least producer-level commodity prices have stopped rising at a pace that seemed out of control. earlier in the year”.
While awaiting US consumer price statistics on Thursday, the main economic event of the week, investors will read at 6:00 p.m. GMT the minutes of the Federal Reserve’s September meeting, which could give them new indications on the continued monetary tightening in the coming weeks.
In Europe, questions about inflation and interest rates add to the persistent tensions on the British markets despite the emergency measures taken by the Bank of England.
RATE
The main consequence of these tensions: the yield on ten-year British government bonds reached its highest level since 2008 at 4.632% and the 30-year its highest level since 2002 at 5.1%.
Their rise favored that of benchmark yields in the euro zone: the ten-year German rose in session to 2.423%, the highest since 2011, before returning to 2.352% at the end of the session. And its French equivalent briefly exceeded 3%, for the first time since 2012.
The trend is less marked on US yields pending consumer price figures: the ten-year is stable at 3.937% and the two-year is down to 4.2995%.
VALUES
Among the biggest sectoral declines of the day on the European side, we find the cyclical sectors of distribution (-1.85%) and banks (-1.03%).
The most spectacular fall of the session is for Philips, whose stock market value fell by 12.27% after a new warning on its results.
On the rise, luxury stocks were driven by better-than-expected turnover from LVMH in the third quarter: the group led by Bernard Arnault took 1.87%, Hermès 1.82%, the Italian Moncler 2 .77%.
CHANGES
On the currency market, the session was mainly marked by a new high of 24 years of the dollar against the yen at 146.88, therefore above the level at which the Bank of Japan had intervened in the market last month.
The pound sterling, she regained ground against the greenback after the sharp drop caused Tuesday by the statements of the governor of the Bank of England suggesting that the latter would not extend its emergency measures beyond Friday.
The euro is virtually unchanged at $0.9691.
OIL
The oil market is suffering from both the strength of the dollar and the deterioration of the economic outlook, two factors which take precedence over the announced drop in production by OPEC+.
Brent fell 2.11% to 92.30 dollars a barrel and US light crude (West Texas Intermediate, WTI) fell 2.42% to 87.19 dollars.
In the aftermath of gloomy forecasts from the International Monetary Fund (IMF), OPEC announced that it had lowered its forecast for global demand growth for this year and next.
TO BE FOLLOWED ON THURSDAY:
THE MARKET SITUATION:
(Some data may show a slight shift)
FENCE
IN EUROPE
Indices Last Var. Var. %YTD
r Dots
Eurofirst 1533.5 -5.25 -0.34% -18.8
300 0 7%
Eurostoxx 50 3331.5 -8.82 -0.26% -22.4
3 9%
CAC 40 5818.4 -14.73 -0.25% -18.6
7 6%
Dax 30 12172, -47.99 -0.39% -23.3
26 7%
FTSE 6826.1 -59.08 -0.86% -7.56
5%
SMI 10199, -8.51 -0.08% -20.7
32 9%
The values to follow
Paris and Europe:
[WATCH/LFR]
THE TREND
AT WALL
STREET
Indices Last Var. Var. %YTD
r Dots
Dow Jones 29378, +139.6 +0.48% -19.1
88 9 5%
S&P-500 3600.4 +11.60 +0.32% -24.4
4 6%
Nasdaq 10458, +32.16 +0.31% -33.1
35 5%
Nasdaq 100 10845, +54.39 +0.50% -33.5
74 4%
Minutes of the meeting at
Wall Street: [.NFR]
“The Day Ahead” – Update on the
next session on Wall Street
[DAY/US]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 0.9691 0.9703 -0.12% +0.00
%
DLR/Yen 146.92 145.86 +0.73% +27.6
9%
Euro/Yen 142.41 141.58 +0.59% +9.28
%
Dlr/CHF 0.9981 0.9968 +0.13% +0.00
%
Euro/CHF 0.9673 0.9677 -0.04% -6.71
%
Stg/Dlr 1.1087 1.0963 +1.13% -18.0
5%
Index $ 113.32 113.22 +0.09% +17.8
50 10 3%
GOLD
Var. %YTD
Gold Spot 1667.7 1665.3 +0.14% +9.93
0 1%
RATE
Last Var. Spread/Bund
r (pts)
Future Bunds 135.98 -0.47
10-year Bunds 2.35 +0.01
Bund 2 years 1.88 +0.01
10-year OATs 2.96 +0.01 +60.8
0
Treasury 10 3.94 -0.00
year
Treasury 2 4.30 -0.02
year
OIL
Previous Price Var. Var.% YTD
ent
Light crude 87.22 89.35 -2.13 -2.38 +42.49
US % %
Brent 92.33 94.29 -1.96 -2.08 +39.83
% %
(Written by Marc Angrand, with Lucia Mutikani in New York)
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