The Palais Brongniart, former Paris Stock Exchange, with the French flag
(Reuters) – European stock markets closed on Tuesday in a mixed order and far from their highs for the day, having compromised the rise in bond yields and suspicions of sabotage of the Nord Stream 1 and 2 gas pipelines favored the rebound at the beginning of the session for a rise in the pound sterling.
In Paris, the CAC 40 closed down 0.27% (15.57 points) to 5,753.82 points after rising as high as 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 lost 0.13%.
All major indices wiped out almost all of their one-year 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 hinted at possible sabotage.
Shortly after the close in Europe, Wall Street, which gained more than 1% at the start of the session after five consecutive falls, also slowed: the Dow Jones had almost returned to balance while the Standard & Poor’s 500 did not gain more. 0.1% and the Nasdaq Composite 0.52%.
Beyond moves linked to geopolitical tensions, market sentiment is far from having changed permanently.
“We do not expect inflation to decline rapidly or return to 2%, which will keep the Fed on a higher rate path. This implies more volatility and requires caution and balance in terms of asset allocation,” the strategy officials said. BlackRock’s investment firm in a note published on Tuesday.
At the same time, analysts have lowered their estimates of S&P 500 results for the third and fourth quarters compared to all of 2022: for July-September the index’s earnings are expected to rise only 4.6% vs. +11, 1% expected in early July.
SPEED
While volatility is receding somewhat in equity markets, moves remain strong in bonds, on both sides of the Atlantic, with benchmark yields posting strong gains again: the 10-year German Bund, the benchmark for the euro zone, took 14 basis points late in the session to 2.228%, the highest in 11 years, and its US equivalent hit a 12-1/2-year high at 3.976%.
The rise in the US 10-year from early August is now closer to 1.5 percentage points.
In the UK market, the 10-year bond, still closely watched after the turmoil of recent days, rose above 4.5% for the first time since 2008. Bank of England Chief Economist Huw Pill He said he advocated a “meaningful” response from the central bank. bank, but hinted that he might wait for the monetary policy meeting scheduled for November.
CHANGES
The dollar takes a break after setting record after record in recent days: the index that measures its fluctuations against a reference basket falls 0.25%, the euro rises to 0.962 and the pound sterling recovers 0.6 % to 1.0748, moving away from the hourly high low hit on Monday.
VALUES
The rebound in European stock markets benefited, among others, the raw materials (+1.89%) and energy (+1.43%) sectors, with the fall of the dollar encouraging the rise in oil and metal prices basics.
In decline, the real estate compartment, especially sensitive to the rise in credit costs, fell by 3.97% and reached its lowest level since January 2012.
OIL
Oil’s rally grows by the hour as Hurricane Ian approaches the Gulf of Mexico, where it could trigger lower production.
Brent gained 2.68% to $86.31 a barrel and US light crude (West Texas Intermediate, WTI) 2.46% to $78.60.
TO FOLLOW WEDNESDAY:
THE MARKET SITUATION
(Some data may show a slight change)
FENCE
IN EUROPE
Indices Last Var. Var. %THE LAST YEAR
r Points
Eurofirst 300 1541.3 +0.57 +0.04% -18.4
2 6%
Eurostoxx 50 3328.6 -13.91 -0.42% -22.5
5 6%
CAC40 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 values to follow in Paris
and in Europe: [WATCH/LFR]
THE TENDENCY
ON WALL STREET
Indices Last Var. Var. %THE LAST YEAR
r Points
Dow Jones 29214, -45.88 -0.16% -19.6
93 0%
S&P 500 3,653.4 -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 in
Financial world: [.NFR]
“The Day Coming” – Update on the
next session on wall street
[DAY/US]
CHANGES
Standby Price Var.% YTD
Euro/USD 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%
PRAYED
Var. %THE LAST YEAR
Gold point 1632.8 1621.5 +0.70% +7.64
9 7%
SPEED
Last Var. Spread/Bund
r (points)
Future bonds 136.93 -1.94
10-year bonds 2.24 -0.02
2-year bond 1.98 -0.01
TAO at 10 years 2.84 -0.02 +60.7
0
Cash 10 3.96 +0.08
year
Treasury 2 4.31 -0.00
year
OIL
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)