The Euronext Stock Exchange in Paris
PARIS (Reuters) – European stock markets ended on a hesitant note on Wednesday, torn between European data raising fears of a rebound in inflation and reassuring American indicators on the transmission of monetary policy. In Paris, the CAC 40 lost 0.12% to 7,364.4 points, while the German Dax fell by 0.24%. The British Footsie gained 0.12%. The EuroStoxx 50 index ended the session down 0.26%, against 0.18% for the FTSEurofirst 300 and 0.15% for the Stoxx 600. In Europe, German inflation fell less than expected in August, while inflation in Spain increased compared to the previous month, two worrying signals while inflation in the euro zone in August is expected on Thursday. This will be the last inflation figure for the euro zone to be released before the European Central Bank’s next monetary policy decision in mid-September, and an upside surprise could convince the institution to raise again. its rates. In the United States, on the other hand, the indicators published on Wednesday confirmed the scenario of a slowdown in activity, which will probably be necessary for the Federal Reserve to bring inflation under control. The ADP report on private employment showed in particular that the number of job creations was lower in August than expected by the consensus, an encouraging development since tensions in the labor market have been one of the main sources inflation in the United States. Caution remains in order, however, ahead of Friday’s publication of the US Department of Labor’s monthly employment report, which will provide a more complete picture of these tensions. VALUES Groups exposed to Gabon collapsed on the stock market after the coup in this Central African country. Eramet tumbled 16.54%, at the bottom of the SBF120, after suspending its local activities. Oil producer Tullow Oil lost 6.56%, while French energy companies TotalEnergies Gabon and Maurel et Prom fell 14.49% and 14.83%. The basic resources sector, on the other hand, rose by 0.84%. Orsted, the world’s largest developer of offshore wind farms, said on Wednesday it could face writedowns of $2.3 billion in the United States due to supply chain issues, soaring interest rates interest and the absence of new tax credits. The stock plunged 24.76%, trailing the Stoxx 600, and dragged the utilities sector down 1.88%. Casino lost 9.16% after Fitch lowered the default rating for long-term currency issues. Brunello Cucinelli ended up 6.72% after raising its revenue forecast for this year, now expecting 19% growth from a previous estimate of 17% to 19%. Delivery Hero fell 10.33% as its first-half net loss was higher than consensus expected. Aroundtown jumped 9.14% after the German property company reported better-than-expected half-year results and raised its profit forecast. A WALL STREET Wall Street is advancing on indicators that the US economy is slowing, dampening the prospect of a rate hike. At the time of closing in Europe, trading on the New York Stock Exchange indicated an increase of 0.11% for the Dow Jones, against 0.35% for the Standard & Poor’s 500 and an advance of 0.56%. for the Nasdaq Composite, made up of rate-sensitive growth stocks. RATES European yields rose under pressure from less-than-expected German inflation and rising Spanish inflation, raising fears of another rate hike in September.
The ten-year yield on US Treasuries, on the other hand, fell 2 basis points to 4.1022% after economic data showed a slowdown in activity, while the two-year rate fell 3.3bp to 4.857 %. At the close, the ten-year German yield had risen 2.3 bp to 2.534%, while that of the two-year rate had taken 2.2 bp to 3.056%. EXCHANGES The dollar is down sharply, while activity indicators published on Wednesday signal that the US economy is slowing down and that the labor market is starting to ease. The greenback fell 0.46% against a basket of benchmark currencies, while the euro climbed 0.41% to 1.0922 dollars, supported by the prospect of higher rates in the euro zone. The pound rose 0.63% to 1.2718 dollars. OIL Crude posts moderate gains, torn between a slowing U.S. economy and near-term concerns over oil production in the Gulf of Florida, and despite Energy Information Administration data showing oil inventories have declined more than expected in the United States last week. Brent nibbles 0.20% to 85.66 dollars a barrel, US light crude (West Texas Intermediate, WTI) climbing 0.34% to 81.44 dollars.
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(Written by Corentin Chapron, edited by Bertrand Boucey)