by Claude Chendjou
PARIS (Reuters) – European stock markets ended lower on Thursday and Wall Street was also trading in the red late morning in New York due to renewed fears of a possible economic recession, inflation and interest rates. of interest after the presentation of the minutes of the last monetary policy meeting of the European Central Bank (ECB) and on the eve of the publication of the monthly US employment report.
After a volatile session in Europe, the CAC 40 in Paris ended down 0.82%, at 5,936.42 points. The British Footsie lost 0.73% and the German Dax 0.37%.
The EuroStoxx 50 index fell by 0.31%, the FTSEurofirst 300 by 0.57% and the Stoxx 600 by 0.51%.
On Wall Street, where the indices alternated one foot in the green, another in the red, the Dow Jones fell by 0.45%, the Standard & Poor’s 500 by 0.36% and the Nasdaq by 0.07% in closing time in Europe.
Thursday’s release of the weekly US jobless claims statistic, which showed a bigger-than-expected rise in the number of people claiming jobless benefits, initially raised hopes that the Federal Reserve American (Fed) could be less aggressive in raising its rates next month, allowing Wall Street to open in the green.
But the tide eventually turned, with uncertainties over the Labor Department’s report, due Friday, taking over as money markets now price in an 80% chance of a 75 basis point hike in Fed rate on November 2.
Minneapolis Federal Reserve Chairman Neel Kashkari further said on Thursday that the U.S. central bank had “still some work to do” to curb inflation and was “very far” from being able to pause in inflation. the rise in its rates.
In the euro zone, the minutes of the last ECB meeting, published on Thursday, showed that the members of the Governing Council had expressed their concern about the risk of anchoring inflation in the absence of a marked tightening of the monetary policy, even at the cost of slowing growth.
Fears of a deterioration in the economic situation were also reinforced by Eurostat data on retail sales in the euro zone, down 2% over one year in August, while those of the Federal Office of Statistics showed that factory orders in Germany fell more than expected in August.
According to one source, the German government has also said it expects a recession next year due to the energy crisis.
In France, INSEE has confirmed its scenario of GDP stagnation in the fourth quarter.
VALUES IN EUROPE
In Europe, most major sectors ended in the red, with the steepest declines in Utilities (-1.9%) and Basic Resources (-1.7%).
In individual stocks, Shell fell 2.8% as the group warned that its third-quarter profit would be hit by lower margins in refining and natural gas trading.
In Paris, Accor (-2.25%) was penalized by Barclays, which is concerned about the group’s exposure to macroeconomic risks.
On the upside, the tobacco company Imperial Brands advanced by 2.478% after the confirmation of its outlook and the announcement of a share buyback plan.
Credit Suisse, up 2.6%, was driven by the raising of the recommendation of JP Morgan.
CHANGES
The euro fell (-0.65%) to 0.9818 dollars after the publication of the minutes of the last meeting of the ECB, which underlined that the depreciation of the single currency could increase inflationary pressures in the region.
The dollar continues to surge, gaining 0.69% against other major currencies, as several Fed officials continue to stress the need for a sharp hike in interest rates.
The pound sterling fell sharply, from 1.26% to 1.1183 dollars, while the rating agency Fitch lowered its outlook on the sovereign rating of the United Kingdom from “stable” to “negative” on Wednesday evening.
RATE
Bond yields in Europe ended higher after the ECB’s “minutes” as investors believe, according to analysts, that the recent rally in equities was probably premature in view of the Frankfurt institution’s concern over the European Union. ‘inflation.
The ten-year German Bund rate, the benchmark for the entire euro zone, gained around six basis points to 2.08%. Morgan Stanley analysts estimate that it could rise to 2.25% or even exceed that level this month.
The yield of the ten-year American, for its part, takes about five points to 3.811%.
OIL
Oil prices continue to rise, still supported by the agreement between OPEC and its allies on a reduction in their crude production of two million barrels per day (bpd).
Brent rose 0.97% to 94.28 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.85% to 88.51 dollars.
(Written by Claude Chendjou, edited by Sophie Louet)
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