Paris gleaned 0.14%, Frankfurt 0.09% and London 0.17%, in a session where the good performance of the basic resources sector offset the weakness of that of real estate. In Zurich, the SMI rose by 0.49%.
The rise in bond yields on Tuesday slowed that of the equity markets, where investors were cautiously optimistic following three weeks of banking crisis.
After a rising opening, the European indices ended up cautiously, the day following a sharp rebound in which the banking sector participated. Paris gained 0.14%, Frankfurt 0.09% and London 0.17%, in a session where the good performance of the basic resources sector offset the weakness of that of real estate. In Zurich, the SMI gained 0.49%.
European markets have “struggled to find a direction with the upward pressure on short-term bond yields”, comments Michael Hewson, analyst at CMC Markets, who observes “an abundance of precaution” following the turbulence of recent weeks on the banking sector.
In New York, the indices evolved in a varied way, the Dow Jones rose by 0.18%, the Nasdaq index crumbled by 0.61%, penalized by the rise in bond rates, and the S&P 500 index yielded 0 .11%.
Investor anxiety regarding banks has eased with the arrival of a buyer for US bank Silicon Valley Bank (SVB), which went bankrupt in early March.
Subject to violent turbulence since this bankruptcy, the bond market is also taking a break.
The yield on 10-year US government bonds stands at 3.56%, once morest 3.52% the day before closing.
Germany’s 10-year debt rate was 2.28%, down from 2.22% at Monday’s close and 2.12% at Friday’s. The two-year equivalent stood at 2.57% once morest 2.38% on Friday.
On the indicator side, American consumers were a little more optimistic in March regarding the economic situation for the next six months, going once morest expectations. However, the monthly survey does not take into account the new key rate hike announced by the Federal Reserve on Wednesday.
Mixed banks
Started on Monday, the rebound in European banking stocks suffered a brake on Tuesday, especially in France where the National Financial Prosecutor’s Office carried out several searches in five banking establishments, including Société Générale (-1.07%), BNP Paribas (+0 .35%) and HSBC (breaking even in London).
Deutsche Bank fell once more (-1.58%), unlike Commerzbank (+1.58%).
Real estate in the cellar
For professionals in the sector, high interest rates due to inflation make it more difficult to refinance real estate and put pressure on their prices, raising the threat of depreciation.
The German leader Vonovia (-6.03%) and the business property specialist Aroundtown (-10.2%) suffered particularly badly. In Paris, URW lost 1.63% and Icade 2.54%.
On the side of currencies, oil and gas
The member states of the European Union agreed on Tuesday to renew for the winter of 2023-2024 their gas consumption reduction target, initially adopted last year in the face of the shock caused by the war in Ukraine.
Oil prices continued to rise sharply. The barrel of Brent from the North Sea for delivery in May gained 1.24% to 79.08 dollars and the barrel of American WTI at the same maturity 1.09% to 73.58 dollars, around 3:55 p.m. GMT.
On the currency side, the euro gained 0.44% once morest the dollar, to 1.0846 dollars for one euro.
Bitcoin was stabilizing around $27,060.
Former FTX cryptocurrency exchange boss Sam Bankman-Fried bribed Chinese officials at least $40 million to regain access to frozen assets, authorities say Americans in a document posted online on Tuesday.
