by Claude Chendjou

PARIS (Reuters) – The main European stock markets, apart from Paris, ended down on Tuesday and Wall Street was also in the red in a context of risk aversion before announcements in particular from the American Federal Reserve (Fed).

In Paris, the CAC 40 rebounded by 0.12% to 7,365.7 points after a decline of 0.71% the day before. The British Footsie, rich in oil stocks, lost 0.81%, while the German Dax lost 0.30%.

The EuroStoxx 50 index declined by 0.09% and the FTSEurofirst 300 by 0.38%. The Stoxx 600, down 0.42%, had a second consecutive session in the red, pulled down mainly by the energy sector (-1.31%).

At the close in Europe, the Dow Jones fell by 0.53%, the Standard & Poor’s 500 by 0.39% and the Nasdaq by 0.38%.

A sign of nervousness, the index measuring volatility in the United States exceeded the threshold of 15 points for the first time in almost three weeks. Its European equivalent also finished close to this threshold.

Investors opted for caution as the US Federal Reserve (Fed) is due to make its monetary policy decision on Wednesday, while those of the Bank of England (BoE), the Bank of Norway and the Bank of Japan ( BoJ) are expected on Thursday.

The strength of retail sales in the United States in November added to the nervousness, raising fears that the Fed would decide to pause its monetary easing in January after the rate cut expected on Wednesday, analysts say.

VALUES IN EUROPE

Airbus (+0.43%) resisted the downward trend, driven by a “buy” advice from Deutsche Bank.

Mining groups Anglo American, Glencore and Rio Tinto ended in the red in London, while in Paris, ArcelorMittal and TotalEnergies were weighed down by fears about demand in China.

Volkswagen gained 0.49% as the car manufacturer’s management and unions resumed negotiations on the restructuring project.

TODAY’S INDICATORS

U.S. industrial production fell unexpectedly in November, falling 0.1% after contracting 0.4% in October.

Investor morale in Germany has increased unexpectedly since the beginning of December, with the Zew index at 15.7 points.

The morale of German entrepreneurs, on the other hand, fell against all expectations in December, to 84.7 points, according to the Ifo institute.

Wages in the UK grew more than expected in the three months to October.

CHANGES

The US dollar strengthens against the main currencies after the publication of retail sales figures in the United States, exceeding 107 points.

The euro fell by 0.04%, to 1.0506 dollars, and could see a drop of almost 5% against the greenback this year.

The pound sterling gained 0.28%, to 1.2718 dollars, supported by statistics on wages in the United Kingdom.

RATE The ten-year German Bund yield ended slightly lower by 1.3 basis points, at 2.232%, while its American equivalent lost 2.6 points, at 4.3731%.

OIL

Oil prices are affected by economic data from China, the main importer of hydrocarbons, and Germany, Europe’s largest economy: Brent lost 1.49% to 72.83 dollars per barrel and American light crude (West Texas Intermediate, WTI) declined 1.63% to $69.58.

(Written by Claude Chendjou, edited by Augustin Turpin)

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