by Laetitia Volga
PARIS (Reuters) – European equity markets ended lower on Wednesday as disappointing economic indicators brought fears for the global economy back to the fore, hours before the release of the minutes of the Reserve’s latest meeting. federal.
In Paris, the CAC 40 lost 0.8% to 7,310.81 points. The British Footsie fell by 1.03% and the German Dax by 0.63%.
The EuroStoxx 50 index lost 0.92%, the FTSEurofirst 300 ended down 0.75% and the Stoxx 600 0.73%.
At the time of the close in Europe, Wall Street was down slightly, around 0.15%.
General market sentiment suffered from the publication in the morning of a decline in the Chinese services PMI index calculated by Caixin / S&P to 53.9, a five-month low, after 57.1 in May.
This new macroeconomic disappointment in China came on top of weaker-than-expected purchasing manager survey results in the eurozone where private sector activity fell into contraction last month.
Investors remained cautious ahead of the release at 6:00 p.m. GMT of the Fed’s “minutes” on the June 13-14 meeting, in which the central bank opted for a pause, while hinting that two more rate hikes may be needed before the end of the year.
“We’ll have to see if the record lives up to the Fed’s ‘hawkish’ message to reduce inflation,” said Joe Manimbo, senior analyst at Convera. “Friday’s jobs report will of course be another indicator of what the Fed is doing.”
VALUES
The basic resources compartment suffered one of the largest sector declines (-1.13%), taking the hit after the latest news from China.
Luxury stocks, very exposed to the Chinese market, also suffered: LVMH fell by 1.07% and Kering by 2.88%.
Another dark day for the Casino retail group, which fell 32.94% to 3.066 euros after the communication of the two capital injection offers received which promise massive dilution for shareholders.
EXCHANGES/RATES
On the foreign exchange market, the greenback rises slightly against a basket of reference currencies and the euro, stable, is trading around 1.087 dollars.
Benchmark yields in the Eurozone ended higher in the wake of the US, after the weaker than expected increase in factory orders in the United States.
That of the ten-year German Bund ended at 2.478%. On the American market, the ten-year took nearly five basis points to 3.9058%, its highest level since March.
OIL
The price of Brent is little changed at 76.56 dollars, the drop in production announced Monday by Saudi Arabia and Russia offsetting concerns about the global economy.
On the American market, closed Tuesday for the national holiday of the United States, American crude gained 2.91% to 71.82 dollars a barrel.
(Laetitia Volga, edited by Bertrand Boucey)
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