Paris lost 0.83%, Frankfurt 0.61% and Milan 0.24%.
Equities fell once more on Monday and the determination to fight inflation displayed by the President of the American Central Bank (Fed) Jerome Powell on Friday pushed bond rates higher.
Stock markets continued the decline that began on Friday. Paris lost 0.83%, Frankfurt 0.61% and Milan 0.24%, also concerned regarding the evolution of energy prices. The Swiss Stock Exchange ended the session with a loss of 0.42%. The London Stock Exchange was closed due to a UK public holiday.
On the New York Stock Exchange, the Dow Jones lost 0.18%, the Nasdaq 0.64% and the S&P 500 0.24% around 6:05 p.m.
Without news or major indicator Monday, investors continue to react to the speech of Jerome Powell, who confirmed Friday that the US central bank would “vigorously use its tools” to curb inflation. For Oanda analyst Edward Moya, Jerome “Powell sent a short and direct message that there would be no pivot from the Fed” to less tight monetary policy anytime soon, which some investors had been hoping for.
As a result, investors avoid risk-taking, says Gilles Moëc, chief economist at AXA Investment Managers. On the debt market, the interest rate for the two-year US loan, the most sensitive to the Fed’s short-term policy, reached its highest level since 2007, before falling slightly to 3.42. % around 4:00 p.m. GMT. It was still significantly higher than the yield on the ten-year loan (3.11%), a sign seen as a harbinger of a recession.
Several members of the European Central Bank (ECB) sounded the same bell as the Fed at the Jackson Hole symposium, pulling European sovereign bond yields higher and galvanizing the euro. German interest rates also rose sharply, reaching 1.06% for two years and 1.49% for ten years.
After a brief run above the dollar, Europe’s single currency was trading at $0.9997 per euro, up 0.31% from Friday’s close. After a sharp drop on Friday, bitcoin was back above 20,000 dollars (20,280 dollars around 6:00 p.m.), up 1.44%.
On the energy side
Oil prices rose sharply in a context of fears regarding the supply of hydrocarbons: the barrel of WTI for delivery in October took 3.40% to 96.22 dollars, that of Brent from the North Sea at the same maturity 3, 11% to 104.14 dollars around 6 p.m.
Gas and electricity markets in Europe were easing, following positive reports on the filling of Germany’s gas reserves for the winter, according to the Bloomberg agency, and announcements from the European Union. European. The latter is preparing “an emergency intervention and a structural reform of the electricity market”, the rules of which are called into question in the face of the current surge in prices, and the energy ministers of the 27 countries will hold discussions. emergency on September 9.
Around 4:00 p.m. GMT, the price of European natural gas fell by 17%, returning to 281 euros per megawatt hour on the Dutch TTF reference market, and the wholesale price of electricity for 2023 in Germany fell by 29%. The German energy giant Uniper for its part rose 2.95% following having requested new aid from the government.