by Claude Chendjou

PARIS (Reuters) – The main European stock markets, except Paris, ended slightly higher on Wednesday, while at the end of the morning on Wall Street two of the three main indices were also pointing upwards, during a session in teeth of saw with hesitant investors after new statements from Jerome Powell and the publication of mixed macroeconomic indicators.

In Paris, the CAC 40 ended down 0.2% at 7,324.76 points. The British Footsie gained 0.13%, supported by basic resources (+1.21%) and the German Dax advanced 0.46% thanks in particular to the automotive compartment (+0.39%) and to Continental (+7.62%).

The EuroStoxx 50 index eroded 0.22%, the FTSEurofirst 300 0.13% and the Stoxx 600 0.08%.

Speaking before the US House of Representatives on Wednesday after a speech the day before in the Senate, Federal Reserve (Fed) Chairman Jerome Powell assured that no decision had yet been made on the size of the hike. rates scheduled for this month. On Tuesday, he shook the markets by announcing that the Fed may have to be more aggressive in the face of recent strong economic data.

The monthly survey by ADP, published during the day, shows that the private sector in the United States created more jobs than expected in February, ie 242,000 against 119,000 jobs the previous month. This survey comes ahead of the official report from the US Department of Labor, expected on Friday, which should, according to a Reuters consensus, show a slowdown in job creation after figures well above expectations in January.

The Department of Labor’s latest “Jolts” (Job Openings and Labor Turnover Survey), released Wednesday, indicates that job openings in the United States fell less than expected in January, from 410,000 to 10.8 million, while that the previous month’s data was revised upwards to 11.2 million.

Traders are now pricing in a near 70% chance of a 50 basis point Fed rate hike following its March 21-22 meeting. They expect rates to peak at 5.66% by September.

For Rick Rieder of BlackRock, this rate could even peak at 6% against a range of “fed funds” currently at 4.50%-4.75%.

VALUES IN EUROPE

In Europe, real estate (-1.14%) posted the largest sectoral decline in the prospect of prolonged monetary tightening.

In the consumer sector, Casino fell 7.98% as its planned divestiture from Brazilian supermarket chain Assaí raised questions about its cash generation, while Adidas fell 2.12% after a drop in the dividend paid to shareholders.

In defense, Thales (-3.62%) disappointed with its free cash flow forecast for this year, while in chemicals, the Swiss antitrust agency accused Givaudan (-1.43%) of collusion on the costs.

AT WALL STREET

At the time of the close in Europe, the Dow Jones fell 0.12%, but the Standard & Poor’s 500 gleaned 0.29% and the Nasdaq 0.59%.

Tesla was down 2.91% as Berenberg lowered its recommendation on the automaker to ‘hold’, while Occidental Petroleum advanced 0.72% after Berkshire Hathaway’s decision to increase its stake to 22.2% in the oil company.

THE INDICATORS OF THE DAY

The eurozone economy has stagnated, with zero GDP growth in the last three months of 2022 compared to the previous quarter, revised Eurostat statistics show.

In Germany, industrial production rose more than expected in January, by 3.5%, while retail sales fell unexpectedly over the same period, by 0.3% in real terms over one month, according to the Destatis data.

CHANGES

The dollar was stable (-0.05%) against a basket of benchmark currencies at the close of trading in Europe, but it rose during the session to a three-month high of 105.883 points.

The euro was virtually unchanged at $1.0548 after hitting a two-month low in session against the greenback at $1.0524.

RATE

The yield on two-year US Treasuries rose further after Tuesday’s sharp rise, rising more than three basis points to 5.044%. Its German equivalent ended with a gain of 1.6 points to 3.32% after reaching 3.367% in the morning, the highest since 2008.

OIL

The prospect of more monetary tightening from the Fed is weighing on oil prices: Brent fell 0.49% to $82.88 a barrel and US light crude (West Texas Intermediate, WTI) 0.85% to 76 $.92.

(Written by Claude Chendjou, edited by Jean Terzian)

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