Aborted rebound in Europe and on Wall Street, fall in the dollar


The Palais Brongniart, former Paris Stock Exchange, with the French flag

(Reuters) – European stock markets ended in mixed order on Tuesday and far from their highs of the day, the rise in bond yields and suspicions of sabotage of the Nord Stream 1 and 2 gas pipelines having compromised the rebound favored at the start of the session by a rise of the pound sterling.

In Paris, the CAC 40 closed down 0.27% (15.57 points) to 5,753.82 points after gaining up to 1.44%. In London, the FTSE 100 lost 0.52% and in Frankfurt, the Dax lost 0.72%.

The FTSEurofirst 300 index gained 0.04% but the EuroStoxx 50 lost 0.42% and the Stoxx 600 0.13%.

All major indexes wiped out almost all of their year-old gains in the afternoon after Swedish and Danish reports of leaks affecting Russia’s Nord Stream 1 and 2 gas pipelines in the Baltic Sea, Stockholm and Copenhagen hinting at possible sabotage.

Shortly after the close in Europe, Wall Street, which gained more than 1% at the start of the session after five consecutive declines, also reduced its progress: the Dow Jones had practically returned to equilibrium while the Standard & Poor’s 500 did not gain more than 0.1% and the Nasdaq Composite 0.52%.

Beyond the movements linked to geopolitical tensions, market sentiment is far from having permanently changed.

“We don’t expect inflation to ebb quickly or back to 2%, which will keep the Fed on a path of higher rates. This implies more volatility and requires caution and balance in terms of asset allocation,” BlackRock’s investment strategy officials said in a note released on Tuesday.

At the same time, analysts have lowered their estimates of S&P 500 results for the third and fourth quarters as for the whole of 2022: for July-September, the profits of the index are expected to increase by only 4.6% against +11.1% expected at the beginning of July.

RATE

While volatility is ebbing a little on the equity markets, movements remain marked on bonds, on both sides of the Atlantic, with benchmark yields once again posting sharp increases: that of the ten-year German Bund, benchmark for the euro zone, took 14 basis points at the end of the session to 2.228%, the highest in 11 years, and its American equivalent reached a high of 12 and a half years at 3.976%.

The rise in the US 10-year since early August is now approaching 1.5 percentage points.

In the UK market, the ten-year, still closely watched after the turmoil of the past few days, rose above 4.5% for the first time since 2008. Bank of England chief economist Huw Pill said advocated a “meaningful” response from the central bank but hinted that it could wait for the monetary policy meeting scheduled for November.

CHANGES

The dollar takes a break after setting record after record in recent days: the index which measures its fluctuations against a reference basket is down 0.25%, the euro rises to 0.962 and the pound sterling recovers 0.6% at 1.0748, moving away from the all-time low hit on Monday.

VALUES

The rebound in European stock markets benefited, among other things, the raw materials (+1.89%) and energy (+1.43%) sectors, with the fall in the dollar encouraging the rise in oil and base metal prices. .

On the decline, the real estate compartment, which is particularly sensitive to the rise in credit costs, fell by 3.97% and reached its lowest level since January 2012.

OIL

The rise in oil is growing as the hours go by as Hurricane Ian approaches the Gulf of Mexico, where it could lead to lower production.

Brent gained 2.68% to 86.31 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.46% to 78.60 dollars.

TO BE FOLLOWED ON WEDNESDAY:

THE MARKET SITUATION

(Some data may show a slight shift)

FENCE

IN EUROPE

Indices Last Var. Var. %YTD

r Dots

Eurofirst 300 1541.3 +0.57 +0.04% -18.4

2 6%

Eurostoxx 50 3328.6 -13.91 -0.42% -22.5

5 6%

CAC 40 5753.8 -15.57 -0.27% -19.5

2 6%

Dax 30 12139, -88.24 -0.72% -23.5

68 8%

FTSE 6984.5 -36.36 -0.52% -5.42

9%

SMI 10126, +53.81 +0.53% -21.3

43 5%

The values ​​to follow in Paris

and in Europe: [WATCH/LFR]

THE TREND

AT WALL STREET

Indices Last Var. Var. %YTD

r Dots

Dow Jones 29214, -45.88 -0.16% -19.6

93 0%

S&P 500 3653.4 -1.55 -0.04% -23.3

9 5%

Nasdaq 10837, +34.15 +0.32% -30.7

07 3%

Nasdaq 100 11276, +22.73 +0.20% -30.9

84 0%

Minutes of the meeting at

Wall Street: [.NFR]

“The Day Ahead” – Update on the

next session on Wall Street

[DAY/US]

CHANGES

Standby Price Var.% YTD

Euro/Dlr 0.9613 0.9606 +0.07% -15.4

5%

DLR/Yen 144.71 144.75 -0.03% +25.7

7%

Euro/Yen 139.12 139.07 +0.04% +6.75

%

Dlr/CHF 0.9895 0.9932 -0.37% +8.47

%

Euro/CHF 0.9513 0.9543 -0.31% -8.27

%

Stg/Dlr 1.0743 1.0684 +0.55% -20.5

8%

Index $ 113.84 114.10 -0.23% +18.3

00 30 7%

GOLD

Var. %YTD

Gold Spot 1632.8 1621.5 +0.70% +7.64

9 7%

RATE

Last Var. Spread/Bund

r (pts)

Future Bunds 136.93 -1.94

10-year Bunds 2.24 -0.02

Bund 2 years 1.98 -0.01

10-year OATs 2.84 -0.02 +60.7

0

Treasury 10 3.96 +0.08

year

Treasury 2 4.31 -0.00

year

OIL

Previous Price Var. Var.% YTD

ent

US light crude 78.39 76.71 +1.68 +2.19 +28.07

% %

Brent 86.10 84.06 +2.04 +2.43 +30.40

% %

(Written by Marc Angrand)

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