After an opening at equilibrium, the main indices lost ground, except London (+0.72%). Frankfurt fell by 0.65%, Milan by 0.86% and Paris fell by 1.28%.
Investors remained cautious on Tuesday, as the new sanctions of Western countries once morest Russia became clearer and the American central bank (Federal Reserve, Fed) once once more insisted on its restrictive turn.
After an opening at equilibrium, the main European indices lost ground, except London (+0.72%). Frankfurt fell by 0.65%, Milan by 0.86%. Paris suffered more, a few days before the first round of the presidential election (-1.28%). In Zurich, the SMI gained 0.29%.
Wall Street hesitated at the opening before going into the red. The Nasdaq, which led the gains on Monday, fell 1.69%, dragging the S&P 500 (-0.65%), while the Dow Jones lost 0.21% around 3:55 p.m. GMT.
Faced with the war in Ukraine, the European Commission on Tuesday proposed to the 27 member countries of the European Union to toughen sanctions once morest Moscow, in particular by stopping their purchases of Russian coal, which represents 45% of EU imports.
This new tightening still needs to be approved unanimously by EU member states.
For its part, the United States has stopped allowing Russia to repay its debt with dollars held in American banks, increasing the risk of a Russian default.
These measures, which “isolate” more and more Russia, also open “the prospect that inflationary pressure in the global economy will remain more persistent in the months to come,” said Michael Hewson of CMC Markets.
In addition, on the monetary front, the Federal Reserve stands “ready to act more strongly” if necessary, assured Lael Brainard, one of its governors, on Tuesday, judging it “essential” to slow down inflation which is at its highest since 40 years in the United States.
The institution will “reduce the balance sheet at a rapid pace from (its) meeting in May,” also said Ms. Brainard.
On the bond market, the interest rates of the States jumped following this speech: the interest rate of the 10 years American rose to 2.556%, an increase of 16 basis points, while the 2 years also climbed, but less impressively (2.520%), once once more causing the two rates to cross.
“The threat of a recession, both in the United States and in Europe, cannot be ruled out”, also affirms Andreas Lipkow, for Comdirect.
Musk joins Twitter board
Billionaire Elon Musk, who on Monday acquired more than 9% of the capital of Twitter, has been appointed to the board of directors of the social network. The title, which had soared by more than 25% on Monday, continued its momentum on Tuesday and took another 3.84%. Tesla, of which Mr Musk is the boss, was down 3.38% following gaining more than 5% on Monday.
Cruise passengers regain hope
Cruise line Carnival (+3.22%) reported that last week it recorded the best week of bookings in its history. In its wake, the companies Royal Caribbean (+0.66%) and Norwegian Cruise (+1.09%) also benefited.
Oil settles, the euro weakens once more
The prospect of sanctions on Russian energy exports kept oil high.
Around 3:30 p.m. GMT, a barrel of Brent from the North Sea for delivery in June yielded 0.12% to 107.40 dollars.
A barrel of US West Texas Intermediate (WTI) for May delivery was flat at $103.27.
Companies in the energy sector such as Enel (+2.00%) in Milan, or Iberdrola (+4.07%) in Madrid, were sought following in this context, as was National Grid (+3.59%) and SSE (+3.51%) in London.
The euro retreated once more once morest the dollar, following having stumbled the day before, the market remaining focused on the situation in Ukraine. Around 3:50 p.m. GMT, the euro traded for 1.0922 dollars (-0.46%).
Bitcoin fell 1.20% to $45,760.
