Fall in sight in Europe, appetite for risk ebbs


by Marc Angrand

PARIS (Reuters) – Major European stock markets are expected to decline on Tuesday despite new records set the day before by Wall Street, a report by the US Federal Reserve highlighting risks to markets prompting investors to be cautious ahead of several price indicators in the United States and China.

Index futures suggest a decline of 0.18% for the Dax in Frankfurt, 0.27% for the FTSE 100 in London and 0.28% for the EuroStoxx 50. As for the CAC 40 in Paris, which remains on eight sessions of rise in a row, it could yield around 0.3% according to the first available indications.

In its biannual financial stability report released on Monday, the Fed explains that fears of a sustained acceleration in inflation and a tightening of monetary policies have become the main concerns of investors, taking precedence over the COVID pandemic. -19.

A further deterioration in the health situation, a rapid rise in interest rates and increased pressure on Chinese real estate are also among the main short-term risks, according to her.

This finding is likely to encourage a little more caution from investors who welcomed Monday the better than expected figures for Chinese foreign trade and the adoption by the US Congress of the Biden plan for infrastructure but are now waiting for the price figures. consumption in the United States, the main macroeconomic meeting of the week.

The session in Europe could be animated by the ZEW index of investor sentiment in Germany, expected to decline, then by the public interventions of several bank executives, including Christine Lagarde for the European Central Bank (ECB) from 13:00 GMT , but also Jerome Powell for the Fed and Andrew Bailey for the Bank of England.

A WALL STREET

The New York Stock Exchange ended up on Monday, welcoming the adoption by the US Congress of the infrastructure investment plan wanted by President Joe Biden, even if the gains were limited by the drop in Tesla’s price.

The Dow Jones index gained 0.29%, or 104.27 points, to 36,432.22, the Standard & Poor’s 500 gained 4.17 points (+ 0.09%) to 4,701.70 and the Nasdaq Composite a advanced 10.77 points (+ 0.07%) to 15,982.36.

The industry (+ 0.39%) and materials (+ 1.23%) sectors ended in the green following the adoption by the American Congress on Saturday of the plan of 1,000 billion dollars of investment in infrastructure.

Tesla lost 4.9% after the poll organized on Twitter by the boss of the automaker, Elon Musk, the majority of participants having opted to sell 10% of its shares in the group. Musk had assured him that he would comply with the result.

Futures are currently suggesting a slightly lower opening.

IN ASIA

On the Tokyo Stock Exchange, the Nikkei index ended the day on a decline of 0.75% while it progressed at mid-session, the rise of technology stocks, starting with SoftBank (+ 10.50%) after its results, not being enough to offset the general deterioration in market sentiment.

In China, the Shanghai SSE Composite takes 0.29% but the CSI 300 is almost stable, investors appearing to be divided between concerns related to the difficulties of the real estate sector and the announcement by the central bank of a new supposed credit scheme. promote the reduction of greenhouse gas emissions.

CHANGES / RATES

The dollar amplifies its decline against other major currencies (-0.16%), pending Wednesday’s inflation statistics.

The euro thus goes back above $ 1.16.

In the bond market, the yield on ten-year U.S. Treasuries fell to 1.4758%, wiping out some of the rise boosted Monday by the adoption of the Biden administration’s infrastructure plan and the mixed demand generated by a three-year auction.

OIL

The oil market is hesitant after two sessions of increase but the upward trend seems far from being called into question after reassuring economic indicators in the United States and China and the adoption of the American infrastructure plan, which bodes well for the economy. demand.

Brent drops 0.02% to 83.45 dollars a barrel and US light crude (West Texas Intermediate, WTI) gives up 0.1% to 82.01 dollars.

JPMorgan specialist analysts believe that global demand is now very close to its pre-pandemic level and that it is expected to increase with the continued resumption of air traffic.

(Edited by Blandine Hénault)


Source: Challenges en temps réel : accueil by www.challenges.fr.

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