PARIS (Reuters) – European scholarships finished down Friday after monetary policy decisions taken in a context of international tensions which are amplified, singularly in the Middle East.
In Paris, the CAC 40 abandoned 1.32% to 7,555.19 points, while the German Dax fell 0.92% and the British footsia declined by 0.43%.
The Eurostoxx 50 index finished the session with a drop of 1.28%, while the FTSEUROFIRST 300 scored a loss of 0.61%and that the Stoxx 600 fell by 0.78%.
Investors digest numerous monetary policy decisions taken between Wednesday and Thursday in a world marked by an uncertain geopolitical context.
Thursday, the Bank of England (BOE) opted for the status quo as the American Federal Reserve (Fed) on Wednesday.
The two central banks, however, highlighted the many uncertainties concerning the economic consequences of global trade tensions but also of the conflict between Israel and Iran which could ignite the region.
“Even if we think that the impact on the economy will remain manageable, the rise in oil prices and the increase in inflation that follows would constitute a real challenge for central banks,” said a note on Wednesday in a note Alexandre Hezez, director of investments at Richelieu Management.
President Donald Trump again strongly criticized the president of the Fed, Jerome Powell, believing that the main rate of the central bank should be 2.5 points below.
The Central Bank of Norway and the Swiss National Bank have chosen to lower their main key rate on Thursday.
François Villeroy de Galhau, governor of the Banque de France and member of the Council of Governors of the ECB, also indicated that he did not exclude a drop in the rates of the Frankfurt institution in the next six months.
Wall Street and the majority of American markets are closed on Thursday due to a holiday celebrating the end of slavery.
VALUES
Kering lost 3.1% and recorded one of the worst performance of the CAC 40 after Berenberg said in a note published Thursday to expect a stagnation of luxury expenses from Chinese consumers in the coming years and mentioned the French group as one of its “less favorite” values ​​in this context.
Eutelsat won 13.91%, the satellite operator who signed a 10 -year agreement with the French government for its armed forces.
Elsewhere in Europe, Rio Tinto fell 2.4% after agreeing to pay $ 138.75 million to end a litigation.
The oil and gas sector took 0.72% while crude prices are now close to a four and a half month summit with geopolitical tensions.
Changes
The dollar is slightly increasing on Thursday and could sign its best weekly performance since the end of January with the search for refuges values.
The dollar earns 0.12% against a basket of reference currencies, the euro crosses 0.13% to 1.1464 dollars, and the pound sterling is strengthened from 0.07% to 1.3427 dollars.
RATE
European yields are slightly increasing Thursday after folds on Wednesday, investors reacting to monetary policy decisions.
The yield of ten years German took 0.5 pb to 2.523%, that of the rate at two years earned 0.3 pb to 1.846%.
OIL
Oil prices are growing on Thursday after Israel said that they have attacked Iranian nuclear sites overnight, feeding fears of a Middle East confraction that could weigh on crude supplies.
Brent increased by $ 78.82 per barrel to $ 78.82, the American light crude (West Texas Intermediate, WTI) adds to 2.94% to 77.35 dollars.
(Written by Bertrand de Meyer, edited by Sophie Louet)
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