Market: Europe ends in disorder after a volatile session
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by Claude Chendjou

PARIS (Reuters) – European stock markets ended in scattered order on Tuesday on weak variations while Wall Street evolved in the red at the end of the morning in New York, the investors being divided on the evolution of the measures against the COVID-19 in China after the hope of easing.

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After a volatile session, the Parisian CAC 40 ended with a meager gain of 0.06% to 6,668.97 points. The German Dax, on the other hand, fell by 0.19%. The UK Footsie, up 0.51%, was driven mainly by basic resources.

The EuroStoxx 50 index and the FTSEurofirst 300 both fell 0.03%, while the Stoxx 600 lost 0.13%.

China on Tuesday announced an acceleration of the campaign to vaccinate the elderly against COVID-19, reviving hopes of an easing of health constraints after an unprecedented wave of protest over the weekend, but the authorities have at the same time opened investigations into some of the demonstrators, raising fears of an accentuation of the repressive component.

“China offers a mixed picture as the protests create uncertainty, but at the same time they could be a catalyst for a possible easing of COVID policy,” said Carl Ludwigson, director of studies at Bel Air, a investment advisory group.

VALUES IN EUROPE

In Europe, the basic resources (+2.69%) and energy (+1.76%) compartments particularly benefited from the renewed optimism linked to China.

The mining groups Rio Tinto (+3.73%), Anglo American (+3.66%) and ArcelorMittal (+2.98%) and the oil stocks TotalEnergies (+2.08%), BP (+1.75 %) and Shell (+1.69%) were searched.

As for financial publications, the forecasts of ASM International (+2.89%) were welcomed, while those of Nestlé (-1.97%) were disappointing. Airline easyJet fell 2.57%, hurt by its warning of inflationary pressures.

Credit Suisse bank fell to a new historic low on Tuesday, less than three Swiss francs, after the very poor reception reserved for its subscription right.

AT WALL STREET

At the time of the close in Europe, the Dow Jones fell by 0.35%, the Standard & Poor’s 500 by 0.44% and the Nasdaq by 0.62% in an equally volatile session.

Five of the eleven major S&P-500 sectors are in the green, with energy posting one of the strongest gains with a gain of 0.83% on the back of the rebound in oil prices.

Exxon Mobil, Chevron, Occidental Petroleum and Marathon Oil are up 0.2% to 1.2%, while ConocoPhillips, further boosted by the conclusion of a 15-year contract with Qatar Energy, is up 0.45%.

THE INDICATORS OF THE DAY

The rise in consumer prices in Germany slowed as expected in November, to 11.3% over one year, while remaining close to a record level, shows the first estimate published on Tuesday by Destatis, the federal institute for statistical.

In Spain, it fell to its lowest since January at 6.6% over one year, show preliminary figures published on Tuesday.

Economic sentiment in the euro zone picked up for the first time since February with an index of 93.7 in November after 92.7 in October.

In the United States, however, consumer confidence deteriorated in November with an index of 100.2 against 102.2 in October, in a context of high inflation, according to the Conference Board survey.

CHANGES

On the foreign exchange market, the dollar, which fell sharply in the morning, is practically stable (-0.07%) against a basket of reference currencies.

The euro is displayed at 1.0345 dollars, up 0.08%.

RATE

Bond yields in Europe ended sharply lower with the slowdown in inflation in Germany in November: that of the ten-year German Bund, the benchmark for the whole of the euro zone, fell around eight basis points to 1, 91%.

On the other hand, the trend is upward in the United States pending the publication on Wednesday of the second estimate of American GDP and a speech by Jerome Powell, the chairman of the Federal Reserve.

The yield on ten-year Treasuries takes about two points to 3.72%.

OIL

Oil prices remain supported by expectations of an easing of anti-COVID measures in China, which could boost demand. Chinese President Xi Jinping has also said that he intends to strengthen his energy partnership with Russia.

Brent rose 0.97% to 84 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.5% to 78.4 dollars a barrel.

TO BE FOLLOWED ON WEDNESDAY:

Inflation in the euro zone in November and the estimate of US GDP in the third quarter.

THE MARKET SITUATION:

(Some data may show a slight shift)

THE FENCE IN

EUROPE

Indices Last Var. Var. %YTD

Points

Eurofirst 300 1728.34 -0.60 -0.03% -8.56%

Eurostoxx 50 3934.44 -1.07 -0.03% -8.47%

CAC 40 6,668.97 +3.77 +0.06% -6.77%

Dax 30 14,355.45 -27.91 -0.19% -9.63%

FTSE 7512.00 +37.98 +0.51% +1.73%

SMI 11077.81 -84.35 -0.76% -13.96%

The values ​​to follow

Paris and Europe:

[WATCH/LFR]

THE TREND TO

WALL STREET

Indices Last Var. Var. %YTD

Points

Dow Jones 33750.49 -98.97 -0.29% -7.12%

S&P 500 3948.74 -15.20 -0.38% -17.15%

Nasdaq 10989.48 -60.02 -0.54% -29.76%

Nasdaq 100 11503.74 -84.01 -0.72% -29.51%

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 1.0343 1.0337 +0.06% -9.03%

DLR/Yen 138.43 138.94 -0.37% +20.31%

Euro/Yen 143.20 143.64 -0.31% +9.88%

Dlr/CHF 0.9520 0.9491 +0.31% +4.36%

Euro/CHF 0.9847 0.9811 +0.37% -5.03%

Stg/Dlr 1.1980 1.1958 +0.18% -11.45%

Index $ 106.6210 106.6810 -0.06% +10.86%

GOLD

Var. %YTD

Gold Spot 1750.70 1740.75 +0.57% +15.40%

RATE

Last Var. Spread/Bund

(pts)

Future Bunds 141.09 +0.67

10-year Bunds 1.93 +0.01

Bund 2 years 2.12 +0.02

10-year OATs 2.55 +0.01 +62.38

10-year Treasury 3.73 +0.03

Treasury 2 years 4.46 -0.01

OIL

Previous Price Var. Var.% YTD

US light crude 78.31 77.24 +1.07 +1.39% +27.94%

Brent 83.86 83.19 +0.67 +0.81% +27.00%

(Written by Claude Chendjou, edited by Bertrand Boucey)

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