Europe ends in deficit, Ukraine weighs, oil rises-2022 March 21, 18:47

European stock exchanges except London fall

European stock exchanges except London fall

Claude Chenjo

Paris (Reuters)-European stock markets except London fell on Monday, Wall Street traded in the red in the middle of the session, the fight in Ukraine continued, and preparations for new sanctions against Moscow were heavy. Investor sentiment as it rises again.

In Paris, CAC 40 fell 0.57% at 6,582.33 points. UK Footsie rose 0.51%, especially thanks to mining and oil inventories. Germany’s Dax fell 0.6%.

The Eurostocks 50 Index fell 0.53%. However, the FTS Eurofirst 300 was up 0.09% and the Stoxx 600 was up 0.04%.

The Kremlin showed on Monday that there was no significant progress in negotiations between Moscow and Kyiv, while at the same time Russian troops bombed the outskirts of Odessa in southwestern Ukraine for the first time.

The European Union’s Foreign Minister will discuss additional sanctions against Moscow, including the oil sector, and US President Joe Biden will visit Poland on Friday to discuss an international response to the crisis.

In addition to the threat of Russia’s oil embargo, the Houthi attack on Saudi Arabia’s oil facilities has fueled concerns about global oil production. The Ministry of Energy of Saudi Arabia announced on Sunday a temporary reduction in the kingdom’s mining volume.

Brent barrels have risen 5.58% and are currently trading at $ 113.98, while US light crude oil barrels are trading at $ 109.38 (+ 4.47%).

“The optimism about the ceasefire in Ukraine is diminishing, which is pushing up oil prices,” said Susannah Streeter, a market analyst at Hargreaves Landsdown.

European value

In the Pan-European STOXX 600, there are only two sectors, the energy compartment (+ 3.02%) and the basic resources sector (+ 1.36%), especially due to the new surge in prices of crude oil and certain metals such as: Finished on the green. Aluminum (+ 3.67%). Australia has decided to ban the export of alumina and aluminum ore to Russia.

Steelmaker ArcelorMittal rose 5.4%, while mining groups Glencore and Anglo American rose 3.8% and 6.1%, respectively. Oil companies TotalEnergies, Shell and BP rose from 0.5% to 4%, while CGG and Vallorec scored 6.7% and 4.3% at SBF 120.

In contrast to raw materials, the luxury compartment (-1%) was ignored and Jeffreys and Barclays lowered the price targets for some stocks in this sector due to the crisis in Russia and Ukraine. LVMH, Salvatore Ferragamo, Moncler and Hugo Boss fell 0.3% to 0.9%.

Kering stocks fell 1.4%. The group also announced that it has appointed Jean-Filippo Testa as General Manager of the Alexander McQueen brand to replace Emmanuel Gintsburger, CEO of Versace, Italy’s rival brand.

On wall street

At the closing price in Europe, the Dow Jones fell 0.94%, the Standard & Poor’s 500 fell 0.56%, and the Nasdaq fell 1.04%. These indexes are in response to the latest statement by President Jerome Powell of the Federal Reserve Board. The Fed said it needed to act “quickly” and act more aggressively as needed.

The new technology compartment (-1%) posted one of the biggest dips in Alphabet, Amazon, Microsoft, and Meta Platforms. Facebook’s parent company is also classified as an “extremist organization” in Russia.

Conversely, energy (+ 2.9%) recorded the best performance, especially with Occidental Petroleum, which surged 6.7%.

Boeing plunged 4.1% after a plane crash in southern China where China Eastern Airlines 737 carried 132 passengers. The Chinese airline immediately announced all suspensions of the Boeing 737-800.

Merger acquisitions such as Nielsen Holdings, which plunged 8% after rejecting the offer, are also driving the trend, with software publisher Anaplan (+ 27%) backed by acquisitions by the Tohma Bravo Investment Fund. .. Insurance specialist Allegheny Corporation surged 24% thanks to a bid by Warren Buffett’s Berkshire Hathaway (+ 1.8%).

change point

Despite Jerome Powell’s comments on the National Association for Business Economics (NABE), the dollar is virtually stable against other major currencies.

Inflation in the UK is expected to rise to 5.9% this year, with the euro falling 0.14% to trading at $ 1.1033, while the pound sterling is 0.2% against the $ 1.3 1995, according to a Reuters study. It is rising. The highest level in 30 years.

ratio

Bond yields are rising, thanks to expectations of a monetary tightening cycle by major central banks.

US Federal Reserve Chair Jerome Powell said Monday that the Fed could resort to a larger than usual rate hike. Prior to this statement, Goldamn Sachs expected at least five Fed rate hikes in 2023.

Yields on 10-year Treasuries are 2.824% at 13.4 basis points.

The eurozone benchmark 10-year German foreign bond yield reached 0.4460% at 7.6 points after reaching its peak of 0.454% since November 2018. The French equivalent of the same maturity advanced 7.5 points to 0.9010%.

However, European Central Bank (ECB) Governor Christine Lagarde declared at a meeting at the Montagne Institute in Paris that the ECB and FRB’s monetary policy would diverge in the near future due to the impact of the Ukrainian conflict. About the European economy.

To follow Tuesday:

A speech by Christine Lagarde at the Summit hosted by the Bank for International Settlements (BIS) at 1:15 pm GMT.

Market conditions

fence

Europe

Indicates the last variable. Variable% YTD

point

Eurofirst 300 1777.68 +1.63 + 0.09% -5.95%

Eurostocks 503881.80-20.64 -0.53% -9.69%

CAC 40 6582.33 -37.91 -0.57% -7.98%

Dax 3014,326.97-86.12 -0.60% -9.81%

FTSE 7442.39 +37.66 + 0.51% + 0.78%

SMI 12171.28 -13.71 -0.11% -5.47%

Values ​​to follow in Paris

And in Europe: [WATCH/LFR]

Wall trends

City

Indicates the last variable. Variable% YTD

point

Dow Jones 34401.96-352.97-1.02% -5.33%

S & P 500 4433.83 -29.29 -0.66% -6.97%

Nasdaq 13719.11 -174.73 -1.26% -12.31%

NASDAQ 10014235.26-184.82 -1.28% -12.77%

Minutes of the meeting at

Wall Street: [.NFR]

“The day before”-Updated

Next session on the wall

City [DAY/US]

change point

Standby price variable% YTD

Euro / Dollar 1.10291.1049-0.18% -2.98%

DLR / Yen 119.41119.17 + 0.20% + 3.78%

Euro / Yen 131.71131.66 + 0.04% + 1.07%

Dlr / CHF 0.9321 0.9316 + 0.05% + 2.18%

Euro / Swiss franc 1.02821.0295-0.13% -0.84%

Stg / Dlr 1.3175 1.3176 -0.01% -2.62%

Index $ 98.458098.2330 + 0.23% + 2.38%

gold

Variable% YTD

Gold Spot 1928.3.2191.09 + 0.38% + 27.11%

ratio

Last variable spread / B

When

(point)

Future band 159.91-1.46

10 year band 0.47 + 0.02

The Bund 2 years-0.29 + 0.02

10 years OAT 0.93 + 0.03 + 46.20

10-year Treasury 2.30 + 0.15

Treasury 2 years 2.11 + 0.15

oil

Previous price variable variable% YTD

US Light Crude Oil 109.88104.70 + 5.18 + 4.95% + 79.51%

Brent 114.44107.93 + 6.51 + 6.03% + 73.32%

(Some data may show a slight shift)

(Report Claude Chendjou, edited by Jean-Michel Bélot)

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