Stocks drop in Europe, risk aversion back


PARIS, Sept 29 (Reuters) – The main European stock markets are down at the start of the session on Thursday, the timid lull offered the day before by the Bank of England’s announcements having been short-lived in the face of lingering uncertainties over the global economy. .

In Paris, the CAC 40 lost 1.53% to 5,676.91 points around 08:00 GMT. In London, the FTSE 100 lost 2.28% and in Frankfurt, the Dax fell 1.55%. The EuroStoxx 50 index is down 1.53%, the FTSEurofirst 300 1.86% and the Stoxx 600 1.74%. European markets ended slightly higher on Wednesday after the BoE announced a temporary program of British bond purchases in reaction to the rout caused on the markets by the presentation of the government’s budgetary projects, which raised fears of a worsening inflation.

The emergency intervention of the Bank of England led to a fall in bond yields and an increase in the pound sterling, but a sign that concerns persist, the British currency is starting to fall again on Thursday. It yields nearly 1% against the dollar. and in the bond market, the ten-year Gilt yield regained nearly 17 basis points to 4.184% after falling more than 100 points the previous day.

In addition to questions about the British budget, investors remain concerned about the rapid rise in the key rates of the major central banks to slow inflation with the risk of tipping the global economy into recession. Investors will watch with interest at 12:00 GMT the first estimate of inflation in Germany in September. In North Rhine-Westphalia, the country’s most populous state, the consumer price index rose 10.1% year on year, the biggest increase since the early 1950s.

On the stock market, almost all the components of the CAC 40 fell, including Renault (-4.07%), ArcelorMittal (-3.31%) and Kering (-2.22%). On the SBF 120 side, Orpea fell 7.71% after publishing a net half-year loss, while Accor gained 2.92% after raising its annual forecast for gross operating surplus. The Swedish giant H&M dropped 4.7% after publishing a significant drop in its pre-tax profit in the third quarter, due to inflation in particular. The European distribution index shows the biggest drop of the morning.

In Frankfurt, the Porsche AG share is trading at 83.52 euros, above the IPO price set at 82.50 euros, which reflects the interest of investors in the luxury car brand.

(Written by Laetitia Volga, Editing by Kate Entringer)




Source link -91