PARIS (Reuters) – European stock markets, except for London, ended sharply lower on Monday after another jump in gas prices and a relapse in the euro, the prolonged closure of the Nord Stream 1 gas pipeline fueling fears of energy shortages in an already strongly recessionary context.
In Paris, the CAC 40 lost 1.2% (74.29 points) to 6,093.22 points after falling to just over 2% in the morning and in Frankfurt, the Dax dropped 2.22%.
The EuroStoxx 50 index ended down 1.53%, the FTSEurofirst 300 0.49% and the Stoxx 600 0.62%.
In London, the FTSE 100 ended up slightly (+0.09%) thanks to the rise in oil and mining stocks.
The American markets are closed, the day being a public holiday in the United States for “Labor Day”.
By announcing Friday evening that the Nord Stream 1 gas pipeline, initially closed for three days, would not restart, Russia revived fears that several countries in the euro zone, starting with Germany, would face supply difficulties. energy, or even forced to ration gas or electricity, in the months to come.
Immediate consequence: a new surge in the price of gas futures, which took up to 35%.
At the same time, the final results of S&P Global’s monthly PMI surveys of purchasing managers in Europe only confirmed that the euro zone was heading towards a recession and that the economic situation in the United Kingdom continued to deteriorate.
This development is fueling the nervousness of the markets all the more as the main meeting of the week which begins will be the meeting of the European Central Bank (ECB) and which could result in a rise of three quarters of a point in rates. interest in order to curb inflation.
“Stratospheric energy prices, the risk of gas shortages and the fiscal and regulatory response will influence the outlook for GDP and inflation in the eurozone far more than anything the ECB can do through rates.” , nevertheless believes Holger Schmieding, Berenberg’s chief economist, in a note to the bank’s clients.
VALUES
On the stock market, the cyclical and energy-intensive sectors suffered the heaviest losses of the day: the Stoxx automobile index thus fell by 4.8%, that of chemicals> by 2.8%, that of of construction by 1.88%.
Conversely, the rise in oil, gas and base metal prices benefited the energy sector (+2.17%) and that of raw materials (+0.46%).
BP took 2.27% in London and TotalEnergies 3.14% in Paris.
Among the biggest drops in the Stoxx 600, German energy group Uniper fell 10.99%, French automotive suppliers Valeo and Faurecia 8.27% and 8.94% respectively.
CHANGES
In the currency market, the euro fell 0.19% against the dollar to 0.9929 after falling earlier in the day to 0.9876, its lowest level since 2002.
The pound sterling, which was losing ground against the greenback at the start of the day, returned to equilibrium after the announcement without any real surprise of the victory of Liz Truss at the end of the internal election at the British Conservative Party, which ensures to succeed Boris Johnson at the head of the government.
RATE
The risk of seeing the new surge in gas and electricity prices fuel inflation and the anticipation of a sharp increase in ECB rates have resulted in a sharp rise in bond yields in Europe: that of the Bund German ten-year gained more than four basis points to 1.563% and its Italian equivalent jumped 10 points to 3.938%.
At the same time, inflation “five years in five years” in the euro zone, a closely followed barometer of long-term inflation expectations, reached 2.2125%, its highest level since mid-June.
OIL
Already on the rise, the oil market amplified its progress after the decision of OPEC and its allies to cut 100,000 barrels per day of their global production in October.
Brent gained 2.41% to 95.26 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.24% to 88.82 dollars.
TO FOLLOW TUESDAY:
THE MARKET SITUATION:
(Some data may show a slight shift)
FENCE
IN EUROPE
Indices Last Var. Var. %YTD
r Dots
Eurofirst 300 1632.5 -8.08 -0.49% -13.6
5 3%
Eurostoxx 50 3490.0 -54.37 -1.53% -18.8
1 1%
CAC 40 6093.2 -74.29 -1.20% -14.8
2 2%
Dax 30 12760, -289.4 -2.22% -19.6
78 9 7%
FTSE 7287.4 +6.24 +0.09% -1.32
3%
SMI 10819, -72.17 -0.66% -15.9
54 7%
The values to follow in Paris
and in Europe: [WATCH/LFR]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 0.9929 0.9951 -0.22% -12.6
6%
DLR/Yen 140.49 140.20 +0.21% +22.1
0%
Euro/Yen 139.51 139.61 -0.07% +7.05
%
Dlr/CHF 0.9797 0.9804 -0.07% +7.40
%
Euro/CHF 0.9728 0.9766 -0.39% -6.18
%
Stg/Dlr 1.1517 1.1507 +0.09% -14.8
7%
Index $ 109.87 109.53 +0.31% +14.2
20 40 4%
GOLD
Var. %YTD
Gold Spot 1710.3 1711.4 -0.07% +12.7
0 4 4%
RATE
Last Var. Spread/Bund
r (pts)
Future Bunds 147.71 -0.62
10-year bunds 1.56 -0.00
Bund 2 years 1.14 -0.03
10-year OATs 2.19 -0.00 +62.7
0
Treasury 10 3.20 +0.00
year
Treasury 2 3.40 +0.00
year
OIL
Previous Price Var. Var.% YTD
ent
US light crude 88.85 86.87 +1.98 +2.28 +45.16
% %
Brent 95.28 93.02 +2.26 +2.43 +44.30
% %
(Written by Marc Angrand)
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