Paris lost 1.27%, Milan 0.82%, Frankfurt 0.42% and London 0.15%. In Zurich, the SMI dropped 0.66%.
Markets were concerned on Friday regarding a stronger-than-expected tightening of monetary policy by the US Federal Reserve in the face of stronger-than-expected inflation in the United States.
The European indices continued to fall, like the day before, in order to align themselves with the losses on Wall Street on Thursday. Paris lost 1.27%, Milan 0.82%, Frankfurt 0.42% and London 0.15%. In Zurich, the SMI lost 0.66%.
On the New York Stock Exchange, the Dow Jones was down 0.16%, the S&P 500 was up 0.43% and the Nasdaq, heavily influenced by stock, was down 0.73%.
The acceleration of inflation in the United States (+7.5% over one year, the highest rate since 1982) has reinforced fears that central banks will withdraw their monetary support from the market earlier and more strongly than anticipated.
The head of the Federal Reserve of St Louis James Bullard said he was convinced on Thursday of the need to increase the key rates of the American central bank by 50 basis points in March, or double what is commonly applied, to achieve a hike of 100 basis points, or 1%, by July.
Many analysts now expect up to seven rate hikes from the US central bank this year, with the first in March. And some even fear that the Fed does not wait for its next meeting in mid-March to make a first increase.
“Central banks are both consolidating their credibility, showing that they are not behind the inflation curve but that they are anticipating things,” explains Laurent Le Grin, head of convertible management at DPAM. .
“On the other hand, they try to reassure the market because if rates rise too quickly, they can slow down economic recovery,” he continues.
Bond yields have nevertheless risen sharply in recent days, reaching levels not seen in recent years. The yield on ten-year US government bonds crossed the 2% threshold on Thursday, for the first time since June 2019. It was worth 2.03% on Friday around 5:40 p.m. GMT.
In any case, inflation weighed on the morale of the wealthiest households, causing the consumer confidence index to drop in February to its lowest level since October 2011.
Under Armor penalized
Under Armor reported higher-than-expected revenue, but the sportswear maker said it expects margins to drop significantly due to high transportation costs. The title lost 9.80% to 18.05 dollars around 5:45 p.m. GMT.
“It reminds us that rising costs, supply delays and bottlenecks in production chains are still there”, following the disruptions linked to the pandemic, notes Laurent Le Grin.
Full throttle at Mercedes
The carmaker posted record profitability of 15% in the fourth quarter of 2021 for its automotive branch, above expectations thanks to the sale of more expensive models. Mercedes-Benz shares jumped 6.72% to 74.44 euros.
Delivery Hero continues its fall
The title of the meal delivery specialist fell 11.81% to 41.00 euros, following dropping 30% on Thursday, investors were disappointed by the results and forecasts of the young company while the whole sector, very sought following at the start of the pandemic, has lost its attractiveness.
On the side of oil, the euro and bitcoin
Oil prices rose sharply, driven by optimistic demand forecasts for black gold, combined with still limited supply in a tight market.
Around 5:45 p.m. GMT, the price of a barrel of Brent from the North Sea for delivery in April rose by 2.05% to 93.27 dollars.
In New York, a barrel of West Texas Intermediate (WTI) for delivery in March took 2.51% to 92.12 dollars.
The euro lost 0.28% once morest the greenback, at 1.1396 dollars.
Bitcoin fell 0.57% to $43,520.
