Europe falls into turmoil and EU proposes new sanctions against Russia-2022 April 5, 19:40

European stock exchanges exit in a decentralized order

European stock exchanges exit in a decentralized order

Claude Chenjo

Paris (Reuters)-The European stock market ended in mixed order on Tuesday, and Wall Street was trading in the red in the middle of the session after the European Union’s proposal to introduce new sanctions against Russia. A rebound that records the failure of surveillance by technology stocks.

In Paris, CAC 40 finished at 6,645.51 points, down 1.28%. However, British Footsie accounted for 0.72%. Germany’s Dax fell 0.65%.

The EuroStoxx 50 index fell 0.84%. FTS Eurofirst 300 nibbling 0.2% and Stoxx 600 0.19%.

On Tuesday, the European Union announced a European Commission President Ursula von der Leyen, proposing to introduce a ban on Russian coal imports and ban transactions with four major Russian banks, including VTB Bank. bottom.

New European sanctions following the alleged atrocities committed by Russian troops in Butcha, a town on the outskirts of Kieu where the bodies of people shot dead at close range were found, are estimated at around € 9 billion annually. One source.

Investors are afraid that these sanctions will cause new rises in commodity prices and put pressure on central banks to deal with inflation.

European value

Among the major European rating sectors, utilities (+ 1.85%), healthcare (+ 1.15%), energy (+ 0.62%) and basic resources (+ 0, 35%) performed well, but high tech (+ 0, 35%). + 0, 35%) was -0.84%), finance (-0.68%) and industry (-1.66%) were abandoned.

In Paris, stocks of banks and highway concessionaires have fallen as markets have priced the possibility of Marine Le Pen’s victory in this month’s presidential election.

French banks are also more exposed to Russia than European banks. Societe Generale, BNP Paribas and Crédit Agricole lost 5.5%, 4.5% and 5.02, respectively, while the European banking index fell 1.04%.

Vinci and Eiffage each fell by about 4%, and Marine LePen supported the nationalization of highway operators.

French groups Capgemini and Wordline, which benefited from tech stock rebounds, fell 2.23% and 2.71%, respectively, while ASML in the Netherlands fell 0.7%.

On wall street

At the closing price in Europe, the Dow Jones fell 0.20%, the Standard & Poor’s 500 fell 0.62%, and the Nasdaq fell 1.74%.

The new technology index fell 1.78%, while Amazon, Apple and Nvidia fell from 1% to 3.7%.

As the Federal Reserve plans to release the minutes of Wednesday’s March meeting, the market has set a near 81% chance of raising rates by another 50 basis points in May.

Contrary to this trend, Twitter, which ended on Monday and ended with a surge of more than 27% after Tesla CEO Elon Musk (-0.5%) announced a stake of more than 9% of capital, is still 3.7%. Occupied. .. Elon Musk also participates in the social network board of directors.

On the upside, cruise operator Carnival (+ 3.2%) announced that the number of bookings for the week of March 28-April 3 increased by double digits compared to previous week’s records. Later, it stood out.

Indicator of the day

According to the final results of the IHS S & P Global Survey, growth in private sector activity in the euro area continued to be strong last month, with a comprehensive index for March of 55.5 in February and an initial estimate of 54,5. However, IHS S & P Global emphasizes that rising energy costs and Russian invasion of Ukraine threaten recovery.

A monthly survey by the US Supply Management Association (ISM) showed that service sector activity accelerated again in March with an index of 58.3.

change point

The dollar has risen 0.39% against a basket of benchmark currencies, thanks to the status of safe shelters, in anticipation of the Fed’s rate hike.

The euro fell 0.51% to $ 1.0914, affected by new European sanctions on Russia.

rate

Yield spreads between foreign Nadas with the same maturity as 10-year French government bonds widened to a two-year high of 55.70 basis points, raising the risk premium on French bonds rather than German debt.

The Bund yield for 10 years was 0.618%, up 9.5 points, and the French equivalent was 1.159%, up 14.3 points.

In the United States, it will increase by 15 points to 2.561% in 10 years.

oil

Oil prices fluctuate as investors arbitrate between tightening supplies in some major countries and fears of releasing strategic stockpiles.

At the end of trading in Europe, Brent was nearly stable at $ 107.5 a barrel, while US light crude oil (West Texas Intermediate, WTI) fell 0.06% to $ 103.2.

(Report Claude Chendjou, edited by Sophie Louet)

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