The stock markets have managed to regain some strength following falls of more than 3% for Paris and Frankfurt last week.
European stock markets managed to rebound on Monday following a difficult week, but Wall Street was still struggling, especially technology stocks penalized by rising interest rates.
Wall Street failed to rebound and stop the downward spiral of December: the Nasdaq lost 1.22%, the S&P 500 0.60% and the Dow Jones 0.19% around 4:50 p.m. GMT.
The US 10-year sovereign rate rose sharply and approached its highest for the month, at 3.60%. This rise weighs particularly on technology companies, which are very sensitive to financing conditions.
In Europe, the stock markets have managed to regain some strength following falls of more than 3% for Paris and Frankfurt last week. Paris took 0.32% on Monday, Frankfurt 0.36% and London 0.40% while Milan ended almost stable (-0.02%). In Zurich, the SMI eroded 0.03%.
“We are heading into the tail-end of a year that has seen significant volatility and weakness,” said Michael Hewson of CMC Markets.
Last week, central bank meetings put an end to the fall rebound, reaffirming their desire to significantly increase their key rate to fight inflation, much more than market expectations.
Investors now fear that a deep recession is setting in and hurting many businesses.
If the agenda for the day is calm, several real estate indicators are expected in the United States during the week. The PCE inflation indicator, the most followed by the US Federal Reserve, will be, as always this year, eagerly awaited on Friday.
In Europe, investor sentiment was slightly supported by that of German entrepreneurs, which continued to rise in December, according to the IFO barometer.
On the bond market, the interest rates of the debts of European countries rose once more sharply, following a jump in the wake of the speech of the President of the ECB Christine Lagarde. The German 10-year rate reached 2.19% and that of Italy 4.36%.
Argentina does not win Adidas
The action of sports equipment supplier Adidas, sponsor of the Argentine team, took 0.15% in Frankfurt, not supported by the victory of Lionel Messi’s team at the FIFA World Cup, which might lead an increase in sales of jerseys to, now, three stars.
For Andreas Lipkow, an independent analyst, inflation takes precedence over sports results. “Producers like Adidas, Nike, Puma and Asics are particularly affected by (consumer) reluctance to buy sporting goods” and Argentina’s victory has “no significant group-wide influence Adidas, he told AFP.
Uniper soon to be nationalized
The shareholders of the gas giant Uniper, meeting in an extraordinary general meeting, approved on Monday the nationalization by the German state of the group, asphyxiated by the end of Russian deliveries. The action took 4.02%, but remains down 92% over the year, and that of its parent company Fortum 5.76%.
On the side of currencies and oil
The dollar sank following being boosted last week by investors’ risk aversion. The euro gained 0.33% to 1.0631 dollars around 4:45 p.m. GMT.
Oil prices rose around 4:45 p.m. GMT. The barrel of American WTI took 1.67% to 75.53 dollars and the barrel of Brent from the North Sea advanced 1.49% to 80.22 dollars.
