PARIS (Reuters) – The main European stock markets are on the downside on Wednesday morning, catching their breath after two sessions in the green linked to a lull on the banks, while the imminence of the monetary policy decisions of the American Federal Reserve (Fed) and the Bank of England (BoE) are also urging caution after the surprise reacceleration of British inflation.
In Paris, the CAC 40 lost 0.31% to 7,090.62 points around 08:30 GMT. In London, the FTSE 100 dropped 0.28% and in Frankfurt, the Dax fell 0.08%.
The EuroStoxx 50 index lost 0.17%, the FTSEurofirst 300 0.03% and the Stoxx 600 0.05%.
Futures on Wall Street suggest a drop of 0.26% for the Dow Jones, 0.27% for the Standard & Poor’s 500 and 0.38% for the Nasdaq the day after a sharply higher session by renewed optimism in the markets and comments deemed reassuring by Janet Yellen, the US Treasury Secretary, on the banking system.
Investors now await the Fed’s monetary policy statement, which will be released at 6:00 p.m. GMT and will be followed half an hour later by a press conference from its chairman, Jerome Powell, who said this month that the he evolution of the cost of credit in the United States would depend on the macroeconomic data received up to this meeting.
Markets are broadly pricing in a limited 25 basis point rate hike, but some analysts, such as Goldman Sachs, see the status quo, believing the recent pressure on banks is tantamount to a rate hike. a quarter point.
The Bank of England (BoE) is due to meet on Thursday and uncertainty about its decision has increased with the publication on Wednesday of consumer prices which show a surprise reacceleration of inflation to 10.4%. over a year in February.
“Given recent market movements, this puts the Bank of England in an incredibly difficult position as a pause in rate hikes may not be enough,” warns Richard Carter, director of fixed income research at Quilting Cheviot.
On the stock market, the real estate compartment (-2.45%), sensitive to variations in interest rates, shows the largest drop in the Stoxx 600. The banking index, which rose 5% over the last two sessions after the rescue plan for Credit Suisse (-0.16%) by UBS (1.06%), is still progressing (+0.1%).
Elsewhere, Ubisoft gains 3.52% after a change in HSBC’s recommendation to “buy”.
(Written by Claude Chendjou, edited by Kate Entringer)
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