PARIS (Reuters) – European markets ended hesitant on Tuesday, with sentiment remaining weak after risky assets fell on Monday’s session.

In Paris, the CAC 40 lost 0.27% to 18.95 points. The British Footsie rose 0.23%, while the German Dax fell 0.1%. The EuroStoxx 50 index lost 0.12%, while the FTSEurofirst 300 gained 0.18% and the Stoxx 600 climbed 0.21%.

Fears of a recession in the United States are receding for the markets, after the publication on Monday of the ISM services, the main American economic sector resisting rate increases better than expected.

Two U.S. monetary policymakers, Mary Daly and Austan Goolsbee, said Monday that a recession did not appear inevitable, although the Federal Reserve must be careful not to keep rates tight for too long.

Investors remain cautious, however, with the latest employment indicators suggesting a slowdown in labor markets consistent with the start of a recession.

The special conditions of August, a month when liquidity is particularly elusive on the markets, contribute to the movements of the indices.

“The violent moves of the last few days are greatly exaggerated by the illiquidity of August, but I would not rule out the possibility that monetary policy is playing a role to some extent,” said Jim Reid, strategist at Deutsche Bank.

Uncertainty remains over central bankers’ next moves as the Fed appeared to rule out an emergency meeting.

“Acting quickly – in the coming days – would have the advantage of avoiding a major stock market shock with repercussions on American consumption. As the “lender of last resort” of the global monetary system, the Fed bears this type of responsibility,” notes Yves Ceelen, head of institutional mandates and Global Balanced funds at DPAM.

“Coordinated action between the leaders of the G7 or the G20 also remains possible,” as during the yuan crash in 2015, adds the manager.

A WALL STREET

Wall Street rebounds mid-session, but gains remain limited as caution persists.

At the time of the European closing, trading on the New York Stock Exchange indicated a rise of 0.8% for the Dow Jones, the Standard & Poor’s 500 posted a rise of 1.3%, while the Nasdaq Composite gained 1.26%.

VALUES

Technology rebounded 2.06%, leading the Stoxx 600 sectors, as investors took advantage of entry points offered by the sector’s fall in recent days.

Airbus announced on Monday that it had delivered 400 planes since January and gained 2.2%.

ArcelorMittal rose 2.6% after announcing the completion of a strategic stake in Vallourec, which gained %.

Coface gained 5.4% after reporting on Monday a turnover down 3.1% but supported by high customer retention.

Clariane (formerly Korian) reported on Monday a 6.8% increase in organic revenue over the first six months of the year, and progressed by 8.4%.

Sonova unveiled a hearing aid that uses real-time artificial intelligence on Tuesday, the first such product to hit the market, sending shares up 6.1%.

Bayer’s earnings fell 5.9 percent, with the group’s EBITDA down 16.5 percent in the second quarter.

RATE

Yields rebounded after falling to multi-month lows on Friday and Monday.

The yield on 10-year Treasuries rose 7.5 basis points to 3.8578%. The two-year gained 10.9 basis points to 3.9936%.

The yield on the ten-year German Bund was stable at 2.1840%. The two-year rose 3.3 basis points to 2.3680%.

CHANGES

The dollar is rebounding after falling sharply on Friday and Monday.

The dollar rose 0.24% against a basket of benchmark currencies, while the euro was stable at $1.0930.

OIL

Crude oil is rising as markets worry about geopolitical tensions in the Middle East.

Brent gained 0.3% to $76.54 per barrel, while US light crude (West Texas Intermediate, WTI) gained 0.3% to $73.22.

(Written by Corentin Chappron, edited by Kate Entringer)

Copyright © 2024 Thomson Reuters