by Claude Chendjou
PARIS (Reuters) – European stock markets ended lower on Friday and Wall Street was also in the red at the end of the morning in New York in a session dominated by renewed uncertainty about banks, including attacks on Deutsche Bank shares. despite the authorities’ attempts to reassure investors.
In Paris, the CAC 40 ended with a loss of 1.74% to 7,015.10 points. The British Footsie lost 1.26% and the German Dax dropped 1.66%.
The EuroStoxx 50 index fell 1.82%. The FTSEurofirst 300 and Stoxx 600 each fell 1.37%.
Over the week as a whole, however, the latter gained 0.87% and the CAC 40 1.29%.
After the setbacks of SVB, Signature Bank and Credit Suisse, investors fear that Deutsche Bank will be next on the list. The action of the first German bank was massively sold on Friday while the yield of its Additional Tier 1 (AT1) debt and the cost of insurance against a risk of default of payment (CDS) rose sharply.
Faced with renewed stress in the markets, Christine Lagarde, President of the European Central Bank, assured Friday that banks in the euro zone were robust and had solid positions in terms of capital and liquidity. German Chancellor Olaf Scholz and President Emmanuel Macron, meeting in Brussels for a summit of European Union leaders, agreed. The day before, the American Secretary of the Treasury, Janet Yellen, had reaffirmed her readiness to take new measures on the bank deposits of Americans.
“For sure global regulators and central banks are trying to dispel all concerns, but I’m not sure people are entirely convinced,” said Brandon Pizzurro, chief investment officer at Guidestone Capital Management.
Sign of nervousness, the index measuring volatility in the United States was displayed at 22.67 points, while its European equivalent ended on a jump of 15.36% to 24.88 points.
VALUES IN EUROPE
The banking compartment in Europe (-3.78%) recorded the largest sectoral decline and a third consecutive weekly decline (-1.58%) with in particular Deutsche Bank which unscrewed by 8.53%.
Credit Suisse and UBS lost 5.19% and 3.55% respectively, further penalized by information about a possible investigation by US authorities into alleged aid to Russian oligarchs.
In Paris, Crédit Agricole, BNP Paribas and Société Générale dropped from 2.06% to 6.13%.
On the SBF 120, Casino plunged 16.11% after its credit rating was lowered by Moody’s and its parent company, Rallye, fell 16.08%, the financial rating agency citing share losses of market, low liquidity and high leverage.
AT WALL STREET
At the close in Europe, the Dow Jones fell 0.06%, the Standard & Poor’s 500 0.02% and the Nasdaq 0.33%, in a volatile session.
The main sectors of the S&P-500 are in the red with a decline of 0.64% for finance and 1.37% for banks.
The big American banks JPMorgan Chase, Wells Fargo and Bank Of America lost 0.63% to 2.40%, while several regional banks such as First Republic Bank, Pacwest Bancorp or Western Alliance Bancorp also lost ground.
THE INDICATORS OF THE DAY
Eurozone PMIs showed an unexpected acceleration in private sector activity growth in March with the composite index at 54.1 after 52.0 in February.
In Britain, the composite PMI index slowed to 52.2, but professionals became more optimistic about their outlook for the year ahead.
In the United States, economic activity accelerated in March with a composite PMI at 53.3 after 50.1 in February, while new orders rebounded for the first time in six months to 51.2 after 48.5 in February, according to official data.
FOREIGN EXCHANGES Risk aversion pulls the dollar up 0.57% against a basket of benchmark currencies, while the euro is trading at $1.076 (-0.65%), despite good PMI figures in Europe .
The yield on ten-year US Treasuries fell about three basis points to 3.36% and that of two years by about five points to 3.74%, on the prospect of a moderation in the rate of the Fed with regard to the banking context.
In Europe, the decline was even more marked, with the ten-year German Bund yield ending down 6.2 points, at 2.12%, and the two-year yield down 12.1 points, at 2. .37%.
Oil prices are hurt by concerns for the banking sector and statements by US Energy Secretary Jennifer Granholm on the country’s strategic crude reserves which have clouded the demand outlook.
Brent lost 1.57% to 74.72 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.47% to 68.93 dollars.
Gold, a safe haven asset, crossed the $2,000 threshold on Friday, before falling back at the close of the stock markets in Europe at $1,986.47 (-0.35%) per ounce in an equally volatile session.
TO BE FOLLOWED ON MONDAY:
THE MARKET SITUATION:
(Some data may show a slight shift)
THE FENCE IN
Indices Last Var. Var. %YTD
Eurofirst 300 1,741.85 -22.70 -1.29% +3.78%
Eurostoxx 50 4130.62 -76.52 -1.82% +8.88%
CAC 40 7,015.10 -124.15 -1.74% +8.36%
Dax 30 14,957.23 -253.16 -1.66% +7.42%
FTSE 7405.45 -94.15 -1.26% -0.62%
SMI 10634.04 -84.50 -0.79% -0.89%
The values to follow in Paris and in
THE TREND TO
Indices Last Var. Var. %YTD
Dow Jones 32105.63 +0.38 +0.00% -3.14%
S&P 500 3947.85 -0.87 -0.02% +2.82%
Nasdaq 11742.66 -44.74 -0.38% +12.19%
Nasdaq 100 12680.09 -49.15 -0.39% +15.91%
Minutes of the session on Wall
“The Day Ahead” – The point on the next
session on wall street [DAY/US]
Standby Price Var.% YTD
Euro/Dlr 1.0758 1.0830 -0.66% +0.52%
DLR/Yen 130.75 130.81 -0.05% -0.27%
Euro/Yen 140.69 141.73 -0.73% +0.28%
Dlr/CHF 0.9183 0.9164 +0.21% -0.66%
Euro/CHF 0.9881 0.9925 -0.44% -0.14%
Stg/Dlr 1.2217 1.2285 -0.55% +0.99%
Index $ 103.1140 102.5320 +0.57% +7.22%
Gold Spot 1986.77 1993.50 -0.34% +30.97%
Last Var. Spread/Bund
Future Bunds 137.92 +0.88
10-year Bunds 2.13 +0.00
Bund 2 years 2.40 +0.02
10-year OATs 2.66 -0.00 +52.90
10-year Treasury 3.37 -0.04
Treasury 2 years 3.76 -0.05
Previous Price Var Var.% YTD
US light crude 69.16 69.96 -0.80 -1.14% +12.99%
Brent 74.91 75.91 -1.00 -1.32% +13.45%
(Written by Claude Chendjou, edited by Tangi Salaün)
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I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.