Europe ends in green with the support of banks-March 22, 2022 18:43

The European stock market will eventually

The European stock market will eventually

Claude Chenjo

Paris (Reuters)-European stock markets closed at highs on Tuesday, and Wall Street was also moving in the positive territory in the middle of the session. This trend is largely supported by banks benefiting from higher bond yields after the president’s restrictive announcement. Federal Reserve System (Federal).

In Paris, CAC 40 finished at 6,659.41 points, up 1.17%. Footsie in the UK rose 0.29% and Dax in Germany rose 1.02%.

The EuroStoxx 50 index rose 0.9%, the FTS Eurofirst 300 rose 0.73% and the Stoxx 600 rose 0.73%.

Financial markets have prioritized expectations of rate hikes on Tuesday over concerns related to the continuation of the war in Ukraine and the new Western sanctions in preparation, and Thursday marks the end of the first month of the conflict between Moscow and Kyiv. increase.

Jerome Powell said Monday evening that the Fed would have to act “quickly” to curb inflation, which could appeal to higher-than-usual interest rate hikes if circumstances require it. Stated.

The US central bank estimated that it could raise interest rates by a quarter point last week for the first time since late 2018, and Goldman Sachs could raise another 50 basis points in May and June.

“Currently, the market isn’t worried about rising interest rates. We believe we need to raise rates to tackle the inflation problem and welcome the limiting bias from the Fed,” said Bright Trading trader Dennis Dick. I have. ” ..

In Europe, the ECB hastily credited, despite a recent statement by European Central Bank Governor Christine Lagarde.

European value

At the European sector level, with the exception of healthcare (-0.07%) and energy (-0.35%), all major compartments of the Stoxx 600 end with greens, financial equities (+ 1.19%) and banks (+ 2.44). I did. %) Recorded the best performance.

Crédit Agricole was up 1.50%, Deutsche Bank was up 5.61% and HSBC was up 3.15%.

Business News ended in the red in Paris after Air Liquide announced a new strategic plan for 2025.

In Amsterdam, Dutch food delivery specialist Just Eat Takeaway.com made a profit of 2.71% through a long-term strategic partnership with McDonald’s to expand its service.

In Rome, the Leonardo Defense Group ended green after a US subsidiary of the communications satellite GES division sold to SES for $ 450 million.

On wall street

At the closing price in Europe, the Dow Jones rose 0.63%, the Standard & Poor’s rose 500 0.89%, and the Nasdaq rose 1.54%.

Nine of the 11 S & P-500 sectors are green, led by finance (+ 1.51%) and non-essential consumption (+ 1.39%). The bank’s sub-compartment occupies 2.27%, especially Bank of America (+ 2.56%) and Wells Fargo (+ 4.01%), supported by the Treasury’s surge in yields.

Nike grew 2.96%, driven by group announcements of sales and higher-than-expected quarterly profits. Meanwhile, Alibaba (+ 12.34%) has benefited from the announcement of a record $ 25 billion (€ 22.7 billion) share buyback plan.

change point

The dollar is stable against the basket of international currencies (+ 0.04%) and has lost its position as a safe haven in the face of new risk needs among investors.

The euro, which has recently suffered concerns about the conflict between Russia and Ukraine, remains virtually unchanged against the dollar (-0.01%).

In cryptocurrencies, Bitcoin rose 3.5% to over $ 42,600, benefiting from reduced risk aversion.

ratio

In the fixed income market, yields on 10-year Treasuries rose 5 basis points to 2.373% after reaching 2.39%, the highest since May 2019.

In Europe, the Eurozone benchmark German Bund 10-year-old rose 7.1 basis points to 0.502% after reaching its highest since October 2018 at 0.526%. The two-year interest rate rose 6.7 points to -0.237. %, After peak after September 2015-0.211%.

France’s 10-year OAT yield rose 6.2 points to 0.969%.

oil

In the aftermath of their sharp rise, Tuesday’s oil prices are volatile due to uncertainty about the possibility of a European embargo on Russian oil.

“We still don’t know if there are any sanctions (for Russian oil),” said Carsten Fritzch of Commerzbank, which requires unanimous consent but is part of the European Union. He added that the member states are more dependent on the image of Germany. Than others of Russian hydrocarbons.

At the end of trading in Europe, the barrel of Brent fell 0.61% to $ 114.94, and the barrel of US light crude oil (West Texas Intermediate, WTI) fell 1.7% to $ 110.21.

Followed on Wednesday:

At 12:00 Greenwich Mean Time, Federal Reserve Chair Jerome Powell participates in a discussion on “New Challenges for Central Bank Governor in the Digital World.”

Market conditions

fence

Europe

Indicates the last variable. Variable% YTD

point

Eurofirst 300 1,790.58 + 12.90 + 0.73% -5.27%

Eurostoxx 50 3926.12 +44.32 + 1.14% -8.66%

CAC 40 6659.41 + 77.08 + 1.17% -6.90%

Dax 3014,473.20 + 146.23 + 1.02% -8.89%

FTSE 7476.72 +34.33 + 0.46% + 1.25%

SMI 12202.62 +31.34 + 0.26% -5.23%

Values ​​to follow in Paris

And in Europe: [WATCH/LFR]

Wall trends

City

Indicates the last variable. Variable% YTD

point

Dow Jones 34809.54 + 256.55 + 0.74% -4.21%

S & P-500 4505.90 +44.72 + 1.00% -5.46%

Nasdaq 14061.78 +223.32 + 1.61% -10.12%

NASDAQ 10014608.94 + 232.85 + 1.62% -10.48%

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 1.10151.1014+ 0.01% -3.11%

DLR / Yen 120.67119.47+ 1.00% + 4.88%

Euro / Yen 132.92131.59 + 1.01% + 2.00%

Dlr / CHF 0.9329 0.9335 -0.06% + 2.27%

Euro / Swiss franc 1.02771.0282-0.05% -0.89%

Stg / Dlr 1.3251 1.3165 + 0.65% -2.05%

Index $ 98.548098.4980 + 0.05% + 2.47%

gold

Variable% YTD

Gold Spot 1919.95 1935.95-0.83% + 26.56%

ratio

Last variable spread / B

When

(point)

Future band 159.45-0.85

10 year band 0.50-0.00

The Bund for 2 years-0.24 + 0.00

10 years oats 0.96-0.01 + 45.80

10-year Treasury 2.37 + 0.06

Treasury 2 years 2.17 + 0.04

oil

Previous price variable variable% YTD

US Light Crude 110.26112.12-1.86 -1.66% + 80.13%

Brent 114.471156.62-1.15 -0.99% + 73.36%

(Some data may show a slight shift)

(Report Claude Chendjou, edited by Jean-Stéphane Brosse)

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