PARIS (Reuters) – The main European stock markets are in the red at the start of the session on Tuesday as bond yields climb, the tenacity of inflation in France and Spain reinforcing fears linked to the monetary policy of central banks.
In Paris, the CAC 40 lost 0.36% to 7,269.10 points at 08:47 GMT. In London, the FTSE 100 lost 0.49% and in Frankfurt, the Dax fell 0.29%.
The EuroStoxx 50 index is down 0.33%, the FTSEurofirst 300 by 0.48% and the Stoxx 600 by 0.37%.
The European and US indices ended in the green on Monday thanks to cheap buying after suffering their worst weekly performance of the year last week.
Given the good economic conditions, analysts have recently raised their expectations for the level at which the interest rates of the Federal Reserve and the European Central Bank will peak.
And the statistics published in the morning are not likely to reassure on this point. In France, inflation calculated at European standards accelerated to 7.2% on an annual basis, compared to 7% in January and for the Reuters consensus, and the figures for Spain also show a more marked rise than expected by the HICP price index, at 6.1%.
The euro wiped out its losses and benchmark bond yields increased after these indicators: that of the ten-year OAT peaked since April 2012 at 3.15% and that of the German Bund gained more than six basis points at 2.649%, the highest since 2011.
“Inflation is proving to be more resilient than previously thought… This therefore raises the question of whether markets have not jumped the gun in pricing in an overall decline in inflation,” he said. Alex Livingstone, at Titan Asset Management.
“If this continues to be the case, with stronger than expected numbers in Europe and the US, we can expect the dollar to rise further against traditionally more risk-dependent currencies like the pound. and the euro”.
On the stock market, Casino lost 1%, the growth of the distributor’s turnover having slowed in the fourth quarter compared to the previous three months.
At the top of the CAC 40, Worldline gains 2.23% thanks to the change of board of Morgan Stanley to “overweight”.
In London, Ocado fell 7.78% after announcing an annual loss heavier than expected.
(Laetitia Volga, edited by Matthieu Protard)
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