Recession in Europe, like Wall Street-May 24, 2022 08:28

Withdrawal in Europe, like Wall Street

Withdrawal in Europe, like Wall Street

By Laetitia Volga

Paris (Reuters)-Europe’s major stock markets are expected to fall at the opening on Tuesday, triggered by Wall Street indices and Asian market futures, against the backdrop of deep-rooted concerns about the global economy.

Futures contracts are down 0.98% at CAC 40 in Paris, 0.75% at Dax in Frankfurt, 0.7% at FTSE in London and 0.81% at Eurostocks 50.

European equities are expected to recover as market sentiment continues to weigh on concerns about central bank policies and the impact of inflation on the global economy and businesses.

The US group Snap should not be able to reach its sales and profit forecasts for the quarter, warning of a deterioration in macroeconomic trends, especially with rising costs.

Shares plunged in post-Wall Street trading, which should be felt at the time of launch across the US market.

On the macroeconomic side, the European morning is fueled by the first results of a monthly S & P global survey of eurozone buyers. This will allow you to learn more about the effects of inflation, the war in Ukraine and supply problems. About the morale of business leaders.

Value to follow:

On wall street

The New York Stock Exchange should return to the red the day after a sharp recovery with the support of the banking sector and digital giants. [.NFR]

Monday’s Dow Jones Index rose 1.98% to 31,880.24 points, the S & P-500 rose 1.86% to 3,973.75 points, and the Nasdaq Composite Index rose 1.59% to 11,535.28 points.

Rating giants Apple (+ 4.0%) and Microsoft (+ 3.2%) led the market up, and JP Morgan rose 6.2% after raising its projected net interest income (non-market) in 2022. .. I have benefited.

Futures contracts show that the Dow Jones are down 0.73%, the Standard & Poor’s 500 are down 1.19% and the Nasdaq are down 1.82%.

The latter has a strong technical element and should be especially punished by Snap’s warning about quarterly results.

In after-hours trading, stock prices fell 31%. As a result, Alphabet decreased by 3.6% and Amazon decreased by 2.2%.

In Asia

The Nikkei Stock Average in Tokyo fell 0.94% to below 27,000 as US futures traded in the red and investors struggled for a new catalyst from the end of the corporate earnings season.

The Chinese market also fell, driven by financial and healthcare stocks, amid mass sales by foreign investors, as concerns over slowing growth were prioritized over new economic support pledges from Beijing.

The CSI 300 Index and Shanghai Composite Index fell 1.3%.

Exchange / charge

The euro has given up some grounds, but will return above $ 1.065 following Monday’s announcement by European Central Bank President Christine Lagarde that deposit rates could exceed zero by the end of September. confirmed. The door to the prestigious pull-up in July.

The dollar, which has regained its position as a safe haven, rose 0.14% against a basket of benchmark currencies.

In the fixed income market, yields on 10-year US Treasuries rose 2 basis points to 2.8369%.

Its German equivalent is up 2.5 points to 0.998%.

oil

Oil prices are declining as potential recession weakens consumption, outpacing global supply restrictions and the prospect of a recovery in China’s demand in Beijing’s stimulus package.

Brent fell 1.15% to $ 112.11 a barrel and US light crude oil (West Texas Intermediate, WTI) fell 1.13% to $ 109.04.

(Author, Editor, Laetitia Volga)

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