2023-06-22 16:55:28
The Brongniart, former Paris Stock Exchange
by Claude Chendjou
PARIS (Archyde.com) – European stock markets ended lower on Thursday, while on Wall Street two of the three indices moved on a cautious note at mid-session due to fears over the evolution of the cost of credit, the main bankers centers, Jerome Powell in the lead, continuing to show a firm tone in the fight once morest inflation.
In Paris, the CAC 40 ended down 0.79% at 7,203.28 points. The British Footsie lost 0.76% and the German Dax 0.22%.
The EuroStoxx 50 index fell by 0.42%, the FTSEurofirst 300 by 0.5% and the Stoxx 600 by 0.51%.
At the time of closing in Europe, the Dow Jones lost 0.12%, while the Standard & Poor’s 500 advanced by 0.07% and the Nasdaq by 0.48%.
Jerome Powell reiterated Thursday before the Senate Banking Committee much of what he said the day before before the House Financial Services Committee that there is still “a long way to go” to bring inflation back to zero. 2% target. In particular, he considered that continued monetary tightening was necessary despite its possible impact on employment, noting before the Senate that inflation was more difficult for the working classes.
One of the governors of the Fed, Michelle Bowman, echoed the same sentiment, declaring on Thursday that “additional rate hikes” would be necessary to bring inflation under control, which has generally stabilized at a high level since the end of the crisis. ‘last year.
Sign of a demand that is not weakening despite a target rate of the “fed funds” currently at 5.00%-5.25%, the statistics published Thursday by the National Association of Realtors (NAR) show that resales of housing in the United States grew by 0.2% to 4.3 million units on an annualized and seasonally adjusted basis.
In Europe, the Bank of England (BoE) surprised the market by announcing a larger-than-expected hike in its key rate, by half a percentage point, to 5%, as inflation in the United Kingdom slowed. slower than expected.
The Swiss National Bank (SNB) and the Norges Bank also increased their respective key rates during the day, by a quarter point and a half point, to 1.75% and 3.75%.
VALUES
The banking compartment (-1.93%), generally the most likely to benefit from a rise in rates, suffered the largest drop in the pan-European Stoxx, as the rise in the cost of credit increased the risk of a recession.
In individual values, in Paris, the satellite operator SES gained 7.80% following the end of discussions with Intelsat on a possible merger. The action of SES Imagotag was suspended on Thursday following the publication of a note by Gotham City Research, according to which the financial accounts of the French electronic labeling group for large retailers are “misleading, incorrect and incomplete”, charges dismissed by him.
Elsewhere in Europe, Ocado soared 32.04% on takeover rumours, while Electrolux lost 4.19% following reports that Midea decided to walk away from taking over the Swedish home appliance group.
CHANGES
The dollar benefits from risk aversion and the prospect of further monetary tightening in the United States, gaining 0.36% once morest other major currencies
The euro is displayed at 1.0952 dollars.
The pound sterling, volatile following the announcements of the BoE, is trading at the close in Europe at 1.2738 dollars (-0.24%), with traders questioning the price to pay to control inflation in the United Kingdom. United.
The Swiss franc rose to 0.8966 once morest the dollar following the decisions of the SNB.
RATE
On the bond market, the yield of the ten-year German Bund ended up gaining 5.7 basis points, at 2.48%, and that of two years took 8.5 points, at 3.27%, reflection of expectations of rate hikes.
In the United States, yields on ten-year and two-year Treasuries were also up, respectively at 3.7946% (+7 points) and 4.778% (+7.1 points).
OIL
Oil prices fell on fears regarding demand in view of the prospect of a hike in interest rates from the major central banks: Brent fell 3.86% to 74.14 dollars a barrel and American light crude ( West Texas Intermediate, WTI) 4.3% to $69.41.
TO BE FOLLOWED ON FRIDAY:
(Edited by Claude Chendjou, edited by Kate Entringer)
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