EUROPEAN STOCK EXCHANGES, EXCEPT LONDON, END LOWER
by Claude Chendjou
PARIS (Archyde.com) – European stock markets, with the exception of London, ended lower on Thursday while Wall Street, supported by cheap buying on technology stocks, moved in the green at mid-session as the Westerners, meeting in Brussels, decided on new sanctions once morest Russia at the dawn of the second month of the war in Ukraine.
In Paris, the CAC 40 ended down 0.39% at 6,555.77 points. The British Footsie, however, nibbled 0.09%. The German Dax lost 0.07%.
The EuroStoxx 50 index fell by 0.15%, the FTSEurofirst 300 by 0.09% and the Stoxx 600 by 0.21%.
The United States, the European Union, the United Kingdom and Canada imposed new sanctions on Russia on Thursday, targeting dozens of defense companies, elected officials, as well as the CEO of Sberbank, the first bank from Russia.
The announcement of these sanctions coincides with the holding of NATO, G7 and European Union summits intended to show Western unity in the face of Russia, which invaded Ukraine on February 24, which Moscow designates it as a “special operation”.
On the military front, Ukrainian President Volodimir Zelensky asked NATO countries to increase their military aid to stand up to the Russian army, which he accused, without supporting evidence, of using phosphorus bombs.
“Even if the stock markets are trying to recover from their correction, the markets are fundamentally more risky and more uncertain than before the invasion of Ukraine by Russia”, underlines Richard Saperstein, director of investments at Treasury Partners.
He further believes that the unprecedented sanctions once morest Russia may trigger unforeseen financial, energy and agricultural shocks.
VALUES IN EUROPE
Risk aversion in Europe resulted in a decline in most sectors or very weak gains. Basic resources (+0.12%), energy (+0.04%) and technology stocks (+0.14%) did however outperform thanks to opportunity buying and uncertainty on geopolitical tensions.
Stmicroelectronics gained 2.03%, while oil companies BP and TotalEnergies advanced 0.33% and 0.75% respectively.
In autos, Renault, the most exposed carmaker to Russia, dropped 0.78% following announcing it was suspending production at its Moscow plant and considering the future of its controlling stake. in Avtovaz.
Daimler Truck, meanwhile, jumped 7.08% as the automaker said it anticipated a limited impact from the Ukraine and COVID-19 crisis on its business this year.
The banking compartment, also under threat from the Russian-Ukrainian conflict, fell by 0.66% with Société Générale (-1.14%), despite the publication of a study by the rating agency Fitch Ratings, which judges “manageable” the impact of the crisis.
A WALL STREET
At the time of the close in Europe, the Dow Jones advanced by 0.57%, the Standard & Poor’s 500 by 0.79% and the Nasdaq by 0.97%, the indices being mainly supported by the technological compartment (+1, 52%).
“These are clearly bargain buys,” notes Greg Swenson, partner at Brigg Macadam. “It will continue as long as there are geopolitical tensions like the war in Ukraine,” he adds.
Alphabet, Apple, Tesla, Meta Platforms and Nvidia took from 0.6% to 8.6%. Car rental company Hertz Global (+3.6%) also added Tesla’s Model Y to its fleet of electric vehicles, while Uber Technologies (+4.4%) benefited from the signing of an agreement to to integrate New York City taxis into its ride-hailing service reservation application.
THE INDICATORS OF THE DAY
PMI surveys on activity in Europe for the month of March showed stronger than expected growth thanks to the lifting of health restrictions, with the composite PMI index for the eurozone coming in at 54.5 once morest a consensus of 53 ,9.
In the United States, jobless claims last week fell more than expected, to 187,000, the Labor Department said.
CHANGES
The dollar appreciates, by 0.12%, for the fourth time in five sessions once morest a basket of international currencies following the publication of the unemployment claims figures and other data which argue for a rate hike in the United States. United.
The euro is practically stable once morest the greenback, at 1.1002 dollars.
The Norwegian krone lost 0.27% once morest the dollar following the increase, as expected, of the key rate of the central bank of the country to 0.75%.
RATE
On the bond markets, yields are rising, supported by expectations of rising credit costs. More and more members of the US Federal Reserve, like Loretta Mester, president of the Cleveland branch, are advocating for stronger measures once morest inflation.
In Europe, Frank Elderson, a member of the board of governors of the European Central Bank (ECB), said on Thursday that the institution might raise interest rates this year.
The yield on ten-year Treasuries rose 1.4 basis points to 2.335%. That of the ten-year German Bund ended with a gain of 4.8 points to 0.527%, following hitting a high since October 2018 at 0.555%. The rate of the French OAT of the same maturity gained 4.4 points to 0.980% following having exceeded 1% for the first time in February 2018.
OIL
The volatile oil market is on a downward trend at the close of trading in Europe, penalized by discussions between the United States and its allies on a coordinated response with a view to releasing their strategic reserves. According to Fatih Birol, director of the International Energy Agency (IEA), the member states of this organization have agreed to radically reduce their dependence on Russian hydrocarbons.
The British ambassador to Washington has also declared that the United States will deliver more liquefied natural gas (LNG) to Europe via the United Kingdom.
The barrel of Brent dropped 1.64% to 119.61 dollars and that of American light crude (WTI) 1.93% to 112.75 dollars.
TO BE FOLLOWED ON FRIDAY:
THE MARKET SITUATION
THE FENCE IN
EUROPE
Indices Last Var. Where. % YTD
Points
Eurofirst 300 1774.38 -1.55 -0.09% -6.13%
Eurostoxx 50 3863,39 -5,83 -0,15% -10,12%
CAC 40 6555.77 -25.66 -0.39% -8.35%
Dax 30 14273,79 -9,86 -0,07% -10,14%
FTSE 7 467.38 +6.75 + 0.09% + 1.12%
SMI 12 131.45 +31.95 + 0.26% -5.78%
The values to follow in Paris
and in Europe: [WATCH/LFR]
THE TREND AT WALL
STREET
Indices Last Var. Where. % YTD
Points
Dow Jones 34573,73 +215,23 +0,63% -4,86%
S&P-500 4499,41 +43,17 +0,97% -5,60%
Nasdaq 14101,83 +179,23 +1,29% -9,86%
Nasdaq 100 14664,02 +216,47 +1,50% -10,15%
Minutes of the meeting at
Wall Street : [.NFR]
“The Day Ahead” – Le point sur
the next session on Wall
Street [DAY/US]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 1,0985 1,1004 -0,17% -3,37%
Dlr/Yen 122,37 121,15 +1,01% +6,35%
Euro/Yen 134,44 133,30 +0,86% +3,17%
Dlr/CHF 0,9316 0,9305 +0,12% +2,13%
Euro/CHF 1,0237 1,0238 -0,01% -1,27%
Stg/Dlr 1,3179 1,3203 -0,18% -2,60%
Index $ 98.8320 98.6220 + 0.21% + 2.76%
OR
Var. %YTD
Or Spot 1961,70 1943,38 +0,94% +29,31%
RATE
Last Var. Spread / B
and
(pts)
Future Bund 159,08 -0,72
fret 10 to 0.53 +0.00
fret 2 to -0.20 -0.00
10-year OATs 0.98 +0.00 +45.10
Treasury 10 ans 2,35 +0,03
Treasury 2 ans 2,12 +0,01
OIL
Previous Price Var. Var.% YTD
US light crude 112.45 114.93 -2.48 -2.16% +83.71%
Brent 119,46 121,60 -2,14 -1,76% +80,92%
(Some data may show a slight shift)
(Report Claude Chendjou, edited by Jean-Michel Bélot)
