The Paris Stock Exchange should be penalized at the opening on Wednesday as the day before by the jump in bond yields, which also generated severe losses on Wall Street, and by tensions on oil prices.
The futures contract for the star CAC 40 index dropped 0.31% around forty minutes before the opening of the session the day after a drop of 0.94%.
The European indices should open lower this morning in the wake of the closing of the American markets affected by the increase in the yield of American bonds, the surge in the price of a barrel of oil and geopolitical tensions in Ukraine, anticipates John Plassard, specialist in investment at Mirabaud.
Oil prices, which are trading at their highest level in seven years, continued to climb.
Asian markets weakened again on Wednesday in the wake of Wall Street.
Tuesday, at the end of a long weekend, US markets had ended in sharp decline against a backdrop of rising bond yields in anticipation of rate hikes that could be larger than expected in the United States.
One week before the meeting of the American Federal Reserve, the evolution of sovereign yields should dictate the trend.
A rise in bond rates generally penalizes equities because it improves the profitability of bonds, assets considered less risky by investors.
The December inflation figures in Germany and Great Britain (+5.4% against 5.1% in November) should also animate the markets.
Faced with the acceleration of inflation during 2021, the cycle of normalization of monetary policies was triggered: Western central banks began to gradually reduce the inflows of liquidity that had been injected to deal with the health crisis.
The next step will be to raise key rates without hurting the economy or destabilizing the markets.
Even though the head of the US Federal Reserve has assured that raising rates should not have a negative impact on the economic recovery, investors fear that his rate hike plan will ultimately be more aggressive in containing inflation.
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Financial analysts are preparing for a first rise in rates in March, 50 basis points, which would be the largest since 2000, when they initially expected a rise half less.
In this context, US debt yields are at their highest since the start of the pandemic: two-year maturity, the most sensitive to rate expectations, moved above the 1% threshold, while ten-year debt continued to fall. close to 2%.
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