by Augustin Turpin
(Reuters) – European stock markets ended lower on Tuesday while Wall Street moved into negative territory mid-session, with mixed results from banks Goldman Sachs and Morgan Stanley prompting investors to be cautious about the health of capital markets and transactions, while declines in Tesla and Apple also weighed on trading.
In Paris, the CAC 40 ended down 0.18% at 7,398 points. The British Footsie lost 0.47% and the German Dax 0.34%.
The EuroStoxx 50 index lost 0.21%, the FTSEurofirst 300 0.22% and the Stoxx 600 0.27%.
At the time of closing in Europe, the Standard & Poor’s 500 was down 0.2%. The Nasdaq is stable, while the Dow Jones falls 0.5%.
In line with recent statements from central bankers, Fed Board of Governors member Christopher Waller said Tuesday that the United States is “within striking distance” of the 2% inflation target, but that the central bank should not rush into cuts to its benchmark interest rate.
The comments echo those made earlier in the day at the World Economic Forum in Davos by François Villeroy de Galhau, governor of the Bank of France, who indicated that the ECB’s next move would likely be a cut in interest rates , but that the institution would show patience before proceeding with such monetary easing.
Wednesday’s publication of German and British inflation figures should give investors new indications of the possibility of an anticipated rate cut.
VALUES
In terms of values, Lindt & Spruengli closed up 6.6% after announcing that its sales growth had exceeded market expectations in 2023.
On the downside, Air France-KLM finished in the red (-2.5%) after announcing the end of its commercial agreement in freight transport with CMA CGM, due to regulatory constraints.
Hugo Boss fell 9.3% at the bell, after reporting operating profit below expectations in the fourth quarter.
Across the Atlantic, Tesla turned upwards (1.3%) mid-session, the markets having apparently digested the words of Elon Musk, who declared on Monday that he was not considering developing the car manufacturer for making it a leader in artificial intelligence and robotics without holding at least 25% of the voting rights on the board of directors.
Apple continues to move in negative territory (-1.1%) after announcing exceptional discounts on its iPhones in China on Monday, a sign of the increased competition encountered by the American group in this crucial market.
Morgan Stanley posted a 3.4% decline after mixed results, following Friday’s profit declines from Wells Fargo, Bank of America, Citigroup and JPMorgan Chase.
“Morgan Stanley and Goldman Sachs tend to serve wealthier clients and have far fewer loan loss reserves,” said Paul Nolte, an analyst at Murphy & Sylvest.
“Overall, I think the banks’ results are pretty good and the banking sector is pretty well capitalized at this point,” he added.
TODAY’S INDICATORS
UK wage growth slowed in the three months to November. Annual wage growth, excluding bonuses, reached 6.6% between September and November, compared to 7.2% in the three months preceding October.
Investor morale in Germany has improved since the beginning of January, according to the monthly survey published Tuesday by the ZEW economic research institute.
In the United States, the Empire State index showed a larger-than-expected decline in January in manufacturing activity in the New York region.
CHANGES
The dollar rallied on Tuesday, while the pound and yen fell as inflationary pressures eased.
The greenback advances (0.73%) against a basket of reference currencies, while the euro loses 0.61% to 1.0881 dollars.
RATE
US and Eurozone bond yields are rising as bullish market momentum fades after cautious comments from central bankers.
The German ten-year yield gained 1.5 basis points to 2.213%, that of the two-year rate gained 0.2 bps to 2.587%.
The US bond markets are progressing, with the ten-year bond market gaining 9.1 basis points to 4.041%, and the two-year bond market gaining 7.7 bps to 4.2153%.
OIL
The escalation of conflict in the Middle East and, as a result, increased volatility in oil futures came into focus on Tuesday, sending oil prices higher as investors tried to gauge the future. impact of tensions on supply.
Brent rose 0.17% to $78.28 per barrel, with light American crude (West Texas Intermediate, WTI) losing 0.43% to $72.37.
(Written by Augustin Turpin, edited by Zhifan Liu)
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