After the rise of Powell and oil, Europe is expected in a dispersed order-07: 51 March 22, 2022

Europe expected in a distributed order

Europe expected in a distributed order

By Laetitia Volga

Paris (Reuters)-The Paris Stock Exchange and the Frankfurt Stock Exchange the day after the more restrictive tone adopted by the Federal Reserve Chairman, while the Footsie 100 in London could stand. Expected to be slightly lower on the first Tuesday, like the Monday session, out thanks to the rise in oil prices that accompanies the rise in crude oil prices.

The first indicators available suggest an increase of 0.33% at CAC 40 in Paris, 0.22% at Dax in Frankfurt and 0.07% at FTSE in London.

Talking to the National Association for Business Economics (NABE), Federal Reserve Chair Jerome Powell said institutions could raise rates significantly more than usual if necessary to counter the sustained acceleration of inflation. Stated.

These statements, made on Monday at the time of the European closure, could fuel the climate of uncertainty associated with the economic situation in Ukraine and the Russian attack.

Clifford Bennett said that peace talks between the two countries have not progressed and new western sanctions may be imposed on Russia’s energy sector, resulting in a sharp rise in inflation, a sharp slowdown in economic recovery, and even Europe. He said he was even concerned about the recession. Chief Economist at ACY Securities.

“Europe is likely to fall into recession, and energy and food prices remain high, which will affect the poorest countries disproportionately. Rising interest rates are a wave of this inflation due to the war. Will not affect. ”

On wall street

The New York Stock Exchange fell on Monday as key indices expanded during the session in response to comments from the chairman of the Federal Reserve Board.

The Dow Jones Industrial Average fell 0.58% to 34,552.99 points, the S & P-500 fell 0.04% to 4,461.18 points, and the Nasdaq Composite Index fell 0.40% to 13,838.46 points.

On the equity side, Boeing fell 3.6% after one of the 737-800s operated by China Eastern Airlines crashed in southern China, killing everyone on board.

Futures point to a slightly lower session.

In Asia

The Tokyo Stock Exchange rose 1.48%, driven by the respective advances in the energy sector and financial stocks due to rising oil prices and bond yields.

In China, the CSI300 index for large caps fell 0.22% and the Hang Seng Index rose 1.81%. This is supported by Alibaba (+ 8.17%) increasing its share buyback program. The stock is $ 25 billion, a record amount for e-commerce. Giant.

change point

The dollar will rise following comments from Jerome Powell, who opened the door to more aggressive monetary policy from the US central bank.

Greenbacks rose 0.34% against a basket of major currencies and 0.74% against a yen alone, reaching a six-year low of $ 120.46.

MUFG analyst Lee Hardman said, “Increasing monetary policy differences between the Fed and the Bank of Japan (Bank of Japan) will amplify the undervaluation of the yen against the dollar.”

The euro fell 0.27% to $ 1.0984.

ratio

Like the dollar, US bond yields are on the rise, with 10-year yields reaching 2.3460%, the highest level since May 2019, and then returning to 2.3315%.

The market expects to cut rates by more than 60% by 50 basis points on May 4, and another rate cut will continue in June, CME Group’s FedWatch barometer shows.

oil

Oil is on the rise, while European Union member states appear to be split about establishing sanctions on Russia’s oil.

“The proposed embargo is still far from being realized, as so many EU member states oppose it. Nevertheless, their talk about it is a significant change,” said the Commonwealth Bank of Australia. A bank analyst wrote in a memo.

US light crude oil (West Texas Intermediate, WTI) was up 2.48% to $ 114.9 and Brent was up 3.02% to $ 119.11.

There are no major economic indicators on the agenda for March 22

(Edited by Nicolas Delame)

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