Aborted the rebound in Europe and on Wall Street, the dollar fell – 09/27/2022 at 18:16


The Palais Brongniart, formerly the Paris Stock Exchange, with the French flag

(Reuters) – European stock markets ended mixed on Tuesday and far from their high day, rising bond yields and suspected sabotage of the Nord Stream 1 and 2 gas pipelines compromised the rebound favored at the start of the session by rising pound sterling.

In Paris, the CAC 40 closed down 0.27% (15.57 points) to 5,753.82 points after gaining 1.44%. In London, the FTSE 100 lost 0.52% and in Frankfurt, the Dax lost 0.72%.

The FTSEurofirst 300 index gained 0.04% but the EuroStoxx 50 lost 0.42% and the Stoxx 600 0.13%.

All major indexes erased nearly all of their year-to-date gains in the afternoon after Swedish and Danish reports of leaks affecting Russia’s Nord Stream 1 and 2 gas pipelines in the Baltic Sea, Stockholm and Copenhagen indicated of possible sabotage.

Shortly after the closing of Europe, Wall Street, which gained more than 1% at the beginning of the session after five consecutive declines, also reduced its progress: the Dow Jones almost returned to equilibrium while the Standard & Poor’s 500 did not gain. than 0.1% and the Nasdaq Composite 0.52%.

Beyond moves linked to geopolitical tensions, market sentiment is far from a permanent change.

“We do not expect inflation to slow down quickly or return to 2%, which would keep the Fed on a path of higher rates. This means more volatility and requires caution and balance in terms of asset allocation ,” said BlackRock investment strategy officials in a note released Tuesday.

At the same time, analysts lowered their estimates of the results of the S&P 500 for the third and fourth quarters as well as for the whole of 2022: for July-September, the income of the index is expected to increase by only 4.6% against of + 11.1% expected. at the beginning of July.

RATE

While the volatility decreased slightly in the equity markets, the movements remained marked by bonds, on both sides of the Atlantic, with the benchmark yield once again posting a sharp increase: that of the ten The one-year German Bund, the benchmark for the euro zone, gained 14 basis points to end the session at 2.228%, the highest in 11 years, and its American equivalent reached a high of 12 and a half years at 3.976%.

The increase in the US 10 years since early August has been close to 1.5 percentage points.

In the UK market, the ten-year, still closely watched after the turmoil of the past few days, rose above 4.5% for the first time since 2008. Bank of England chief economist Huw Pill said that he advocated a “meaningful” response from the central bank but indicated that it could wait for the monetary policy meeting scheduled for November.

CHANGES

The dollar is resting after setting record after record in recent days: the index that measures its fluctuations against a reference basket fell by 0.25%, the euro rose to 0.962 and the pound sterling recovered 0.6% to 1.0748, moving away from Monday’s all-time low hit.

PRICES

The rebound in the European stock markets benefited, among other things, the raw materials (+ 1.89%) and energy (+ 1.43%) sectors, with the fall of the dollar encouraging the increase in the price of oil and base metal. .

In decline, the real estate compartment, which is particularly sensitive to the increase in credit costs, fell by 3.97% and reached its lowest level since January 2012.

wool

The rise in oil is increasing as the hours pass as Hurricane Ian approaches the Gulf of Mexico, where it could lead to lower production.

Brent gained 2.68% to 86.31 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.46% to 78.60 dollars.

FOLLOWING ON WEDNESDAY:

THE MARKET SITUATION

(Some data may show slight deviations)

coral

IN EUROPE

Indices Last Var. Var. %YTD

r Dots

Eurofirst 300 1541.3 +0.57 +0.04% -18.4

2 6%

Eurostoxx 50 3328.6 -13.91 -0.42% -22.5

5 6%

CAC 40 5753.8 -15.57 -0.27% -19.5

2 6%

Dax 30 12139, -88.24 -0.72% -23.5

68 8%

FTSE 6984.5 -36.36 -0.52% -5.42

9%

SMI 10126, +53.81 +0.53% -21.3

43 5%

The ideals to follow in Paris

and in Europe: [WATCH/LFR]

THE FASHION

ON WALL STREET

Indices Last Var. Var. %YTD

r Dots

Dow Jones 29214, -45.88 -0.16% -19.6

93 0%

S&P 500 3653.4 -1.55 -0.04% -23.3

9 5%

Nasdaq 10837, +34.15 +0.32% -30.7

07 3%

Nasdaq 100 11276, +22.73 +0.20% -30.9

84 0%

Minutes of the meeting of

Wall Street: [.NFR]

“The Day Ahead” – Update on

next session on Wall Street

[DAY/US]

CHANGES

Standby Price Var.% YTD

Euro/Dlr 0.9613 0.9606 +0.07% -15.4

5%

DLR/Yen 144.71 144.75 -0.03% +25.7

7%

Euro/Yen 139.12 139.07 +0.04% +6.75

%

Dlr/CHF 0.9895 0.9932 -0.37% +8.47

%

Euro/CHF 0.9513 0.9543 -0.31% -8.27

%

Stg/Dlr 1.0743 1.0684 +0.55% -20.5

8%

Index $ 113.84 114.10 -0.23% +18.3

00 30 7%

GOLD

Var. %YTD

Golden Spot 1632.8 1621.5 +0.70% +7.64

9 7%

RATE

Last Var. Spread/Bund

r (pts)

Future Bunds 136.93 -1.94

10-year Bunds 2.24 – 0.02

Bund 2 years 1.98 -0.01

10 year OATs 2.84 -0.02 +60.7

0

Treasury 10 3.96 +0.08

year

Treasury 2 4.31 -0.00

year

wool

Previous Price Var. Var.% YTD

ent

US light crude 78.39 76.71 +1.68 +2.19 +28.07

% %

Brent 86.10 84.06 +2.04 +2.43 +30.40

% %

(Written by Marc Angrand)

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