Cac 40 cuts its losses, Bank of England intervenes to calm markets, Market news

The Paris Stock Exchange narrowed its losses while aligning to its eleventh decline in twelve sessions. The Bank of England has announced that it will temporarily buy long-term bonds from today to calm the markets until October 14th. Global financial markets, trading at near two-year lows, nevertheless remain facing the specter of recession against a backdrop of tighter monetary policies to curb inflation, maintained by Fed officials, all in a climate of rising tensions between the Europeans and Moscow.

Middle session, the Room 40 fell 0.27% to 5,738.24 points after a floor of 5,651.49, not seen since February 2021. in the future the American yield index between 0.1% and 0.6%.

Suspicions of sabotage of the Nord Stream gas pipelines, which carry Russian gas to Germany, have in fact fueled the energy crisis that threatens Europe as winter approaches. Without directly quoting Moscow, European leaders believed that the damage suffered by the pipelines was ” deliberately and suggests that critical infrastructure on the Old Continent is now a target.

Any deliberate destruction of Europe’s energy infrastructure is completely unacceptable and will lead to a strong and united response “said Josep Borell, the EU’s head of diplomacy, according to the German channel ntv. ” The damage to the infrastructure has pushed tensions between the West and Russia to a point of no return, undermining hopes for short-term progress, both geopolitical and energy. sums up Ipek Ozkardeskaya of Swissquote Bank. In Rotterdam, European gas futures jumped 14% on the day after rising 17%.

US 10-year yield flirts with 4%

The pound sterling’s return against the dollar also raised fears of contagion to other currencies, especially as Moody’s warned that unfunded tax cuts in the United Kingdom could have an impact ” negative of the country’s sovereign rating. The IMF, for its part, points out that these reductions ” not targeted will increase inequality and calls on the British government to review its copy.

Several officials of the European Central Bank estimate that the ECB may raise its interest rate by 75 basis points in October, after an increase of the same size last month and decide on a new increase in December. .

In the bond market, US bond yields remained just below the 4% threshold, which was crossed this morning for the first time since 2010 as Fed officials maintained expectations of a continued increase in interest rates. Considered “dovish”, Neel Kashkari, president of the Minneapolis branch, believes that the reaction of the central bank is aggressive in a way ” should added that the Fed will not repeat past mistakes. Charles Evans, his colleague at the Chicago Fed, says he’s nervous about the idea very fast rate increase “.

STMicroelectronics is weighed down by Apple

In Europe, the yield spread between the Italian 10-year BTP and the German Bund of the same maturity passed 250 basis points, ” more than the 200 point mark we consider tolerable for the ECB JPMorgan said in a note.

Apple Supplier, STMicroelectronics decreased 5.5% following reports from Bloomberg that the Apple brand has stopped ramping up production of the latest iPhone due to lack of demand.

Values ​​linked to raw materials fell, weighed down by the dollar’s strength and fears of a recession. ArcelorMittal lose 5.1% and Total Energy 1.4%

trigano jumped more than 12%. The manufacturer of motorhomes announced an increase in its turnover in the fourth quarter of its staggered fiscal year, thanks to its acquisition policy. The group emphasizes in particular the transfer of chassis shortages, expecting an improvement from the end of the year. ” the car manufacturers, manufacturers of these chassis, all suggest a clear improvement in the situation from the end of 2022. “, he said in his press release.

Sanofi needs 1.4%. The pharmaceutical group said it expects a positive impact of money on the results of the third quarter, up to 10% to 11% for turnover and 12% to 13% for profit per share.

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