2023-10-03 16:22:04
Paris (awp/afp) – Stock markets are losing ground on Tuesday, facing interest rates which continue to rise on the bond market to reach levels not seen for several years and which threaten the economy.
In Europe, Paris lost 1.01%, finishing below 7,000 points for the first time since March 2023, Frankfurt (-1.06%) also fell to its lowest since March, when the banking crisis caused collapse the world stock markets. In Zurich, the SMI lost 0.92%.
Milan lost 1.32% and London 0.54%. Asian stock markets also recorded significant losses earlier.
Wall Street has been in the red since the opening: the Dow Jones lost 1.30%, the S&P 500 1.53% and the Nasdaq 1.86% around 3:55 p.m. GMT.
Investors have had their eyes on the bond market since the American Federal Reserve (Fed) suggested on September 20 that its rates would remain high for longer than expected by investors.
The publication of figures on American employment did not help to allay investors’ fears: “the JOLTS report (from the Department of Labor, Editor’s note), showed that the job market is not running out of steam”, reports Edward Moya, Oanda analyst.
“This means that the Fed will continue to be restrictive,” comments Florian Allain, portfolio manager at Mandarine Gestion.
Interest rates on United States debts have been at their highest since 2007, for maturities of two, ten and thirty years.
Around 3:50 p.m. GMT, the ten-year yield was at 4.78%, compared to 4.68% at the close on Monday.
“In terms of real rates, that is to say adjusted for inflation, we are at more than 2.40%” in the United States, underlines Florian Allain.
“It is becoming extremely costly to borrow for states, businesses, households and this is what will slow down the American economy,” according to him.
In Europe, the interest rate on German ten-year debt stood at 2.96% compared to 2.92% on Monday, the highest since July 2011.
Acquisition chez Eli Lilly ___
The American pharmaceutical company Eli Lilly (-3.56% in New York) will acquire the biotech Point Biopharma for around $1.4 billion, in order to strengthen its position in cancer therapies.
Boohoo booed in London ___
The British online clothing sales site Boohoo lost 2.75% in London, following announcing a sharp drop in turnover and a widening loss for its staggered first half.
Deutsche Bank sous surveillance ___
Germany’s leading bank Deutsche Bank has been placed under supervision by a special representative of the financial supervisory authority Bafin while it resolves the chaos linked to the integration of the bank accounts of its subsidiary Postbank, Bafin announced on Monday.
The German bank’s shares fell 1.83% in Frankfurt, and that of Commerzbank lost 2.66%.
On the oil and currency side ___
Oil prices are increasing on the eve of an OPEC+ technical meeting.
Around 3:50 p.m. GMT, a barrel of Brent from the North Sea, for delivery in December, rose 0.55% to $91.21, shortly following slipping below $90 per barrel for the first time since the beginning of September. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in November, gained 0.97% to $89.64.
On the foreign exchange market, the euro lost 0.22% once morest the dollar at 1.0454 dollars.
The ruble fell 0.20% to 99.47 rubles per dollar around 3:50 p.m. GMT, despite action by the Central Bank to counter inflation and the weakening of the national currency.
Bitcoin fell 1.83% to $27,330.
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