PARIS (Reuters) – The main European stock markets are trending downward on Tuesday morning, for the fourth session in a row, the pressure on rates not easing while several officials from the major central banks continue to insist on the need to continue the current monetary tightening.

In Paris, the CAC 40 lost 1.02% to 7,051.03 points around 07:55 GMT. In London, the FTSE 100 fell by 0.12% and in Frankfurt, the Dax fell by 0.69%.

The EuroStoxx 50 index fell by 0.97%, the FTSEurofirst 300 by 0.5% and the Stoxx 600 by 0.63%.

Futures contracts on Wall Street forecast a drop of 0.53% for the Dow Jones, 0.58% for the Standard & Poor’s 500 and 0.60% for the Nasdaq following a slight rebound supported by the ‘energy.

From Christine Lagarde, the president of the European Central Bank (ECB), via Isabelle Schnabel, member of the ECB’s governing council, several officials from the Frankfurt institution explained on Monday that the euro zone did not have one finished with inflation, the figures for which will be published on Friday.

In the United States, Austan Goolsbee and Neel Kashkari, two members of the Fed, agreed in the same direction, the first even saying he expected a further rise in interest rates.

An intervention by Jerome Powell, the president of the Fed, is planned for the week, while Philip Lane, chief economist of the ECB, is due to speak during the day.

In the meantime, the yield on the ten-year German Bund continues to rise, to 2.821%, a peak since 2011, and that of US Treasury bonds of the same maturity has risen to a 16-year high, at 4.566%.

“We expect the ten-year yield (in the United States) to reach a new high in the coming weeks,” Westpac strategists wrote in a note in which they mentioned a possible peak around 4 .75%.

Traders are now betting on a further hike in Fed rates of a quarter point by January, while a possible cut has been postponed until summer 2024, shows the Fedwatch barometer.

On the European stock market, sectors sensitive to changes in the cost of credit such as real estate fell by 1.25%, while the new technologies compartment lost 1.36%. Luxury, exposed to China, whose economy is slowing, lost 1.62% with a decline of 2.04% for LVMH and 2.58% for Richemont.

The semiconductor group ASM International fell by 2.27% despite the increase in its turnover target for 2025. This increase, however, is considered “disappointing” by Jefferies analysts.

(Writing by Claude Chendjou, edited by Kate Entringer)

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