Bright red for the last stock market session of the semester – 06/30/2022 at 13:54

Bright red for the last stock market session of the semester - 06/30/2022 at 13:54
EUROPE IN THE RED MID-SESSION

EUROPE IN THE RED MID-SESSION

PARIS (Reuters) – Wall Street is expected to fall and European stocks widen their losses mid-session on Thursday, fears of recession against a backdrop of accelerated interest rate hikes continuing to dictate the trend for this last session of a semester that ended with a historic drop in global equities.

Futures contracts on the main New York indices point to an opening down 1.22% for the Dow Jones, 1.32% for the Standard & Poor’s 500 and 1.59% for the Nasdaq.

In Paris, the CAC 40 lost 2.64% to 5,872.20 points at 11:00 GMT. In London, the FTSE 100 lost 1.94% and in Frankfurt, the Dax fell 2.61%.

The EuroStoxx 50 index is down 2.52%, the FTSEurofirst 300 2.06% and the Stoxx 600 2.01%.

The latter is currently down 11.1% over the second quarter as a whole and 17% since the start of the year. The CAC 40 has lost 11.8% since April 1 and 18% over the last six months.

As for the MSCI world index, it is quite simply heading for the worst half-yearly performance in its history, ie a fall of just over 20%.

The trend remains weighed down by statements on Wednesday by the leaders of the American Federal Reserve, Jerome Powell, of the European Central Bank (ECB), Christine Lagarde, and of the Bank of England, Andrew Bailey, on the risk of seeing their fight against inflation with rate hikes slow down or even stifle growth.

The risk of recession in the United States “is close to 50%, maybe a little more, so high,” said Andrew Balls, global director of fixed rate investments at PIMCO, during a presentation on Thursday. “Even if the recession is avoided in the United States, the environment will remain difficult. And it is the same thing in Europe.”

“The short-term inflation path is very important. Central banks are focused on their inflation credibility,” he added.

Investors will therefore carefully study at 12:30 GMT the monthly figures for household income and expenditure in the United States, which include the PCE price index, the most watched by the Fed. For the euro zone, they will have to wait until Friday to know the first estimate of inflation for June.

In France, consumer prices calculated according to European standards show a jump of 6.5% over one year according to the first figures from INSEE.

WALL STREET VALUES TO FOLLOW

VALUES IN EUROPE

None of the major sectors of the European rating escaped the decline but the most cyclical suffered more than others, starting with the automobile sector, whose Stoxx index fell by 4.31%.

Volkswagen lost 5.65%, BMW 3.77% and in Paris, Renault, Michelin and Stellantis lost between 3.7% and 5.7%.

The banking compartment dropped 2.76%. Societe Generale posted a drop of 6.55% against -4.16% for BNP Paribas.

In Frankfurt, energy supplier Uniper fell 16.01% after withdrawing its earnings forecast for this year due to lower Russian gas deliveries. Its Finnish shareholder Fortum wins 5.93%.

RATE

Despite the prospect of rate hikes, benchmark bond yields are falling, a sign that fears about growth have largely prevailed for the time being.

That of the ten-year German Bund fell nearly nine basis points to 1.417%, after the fall of 13 points triggered on Wednesday by the figures below the consensus for inflation in Germany.

Its American equivalent fell just over three points to 3.0593%.

CHANGES

General risk aversion benefited the dollar, which appreciated by 0.18% against a benchmark basket.

The euro, on the other hand, fell 0.36% against the greenback. It is heading for a drop of almost 6% for the whole of the second quarter, its worst quarterly performance since 2016.

The Swedish krona briefly benefited from a half-point hike in the Swedish central bank’s key interest rate, a tightening in line with expectations.

OIL

The oil market is falling but remains very volatile, with investors still torn between fears of a deterioration in demand and tensions on supply.

Brent fell 0.54% to 115.63 dollars a barrel and US light crude (West Texas Intermediate, WTI) fell 0.61% to 109.11 dollars.

MAIN ECONOMIC INDICATORS ON THE JUNE 30 AGENDA:

COUNTRY GMT INDICATOR PERIOD PREVIOUS CONSENSUS

USA 12:30 p.m. Household income May +0.5% +0.4%

Consumption expenditure na +0.7%

Household

Core PCE price index +0.4% +0.3%

– over one year +4.8% +4.9%

USA 12:30 p.m. Unemployment claims wk. at 228.000 229.000

June 25

THE MARKET SITUATION:

(Some data may show a slight shift)

WALL

STREET

Indices Last Var. Var. %

r dots

Dow Jones 30635, -364.0 -1.17%

00 0

S&P 500 3767.2 -54.00 -1.41%

5

Nasdaq -100 11494, -197.0 -1.69%

00 0

“The Day Ahead” – The point on the next

session on wall street [DAY/US]

The session

former

:

Closing Indices Var. Var. %YTD

e dots

Dow Jones 31029, +82.32 +0.27% -14.61

31%

S&P 500 3818.8 -11.39 -0.30% -19.88

3%

Nasdaq 11177, -342.9 -2.98% -28.55

89 0%

Nasdaq 100 11658, -371.1 -3.09% -28.56

26 3%

MARKETS

EUROPEANS

Indices Last Var. Var. %YTD

r dots

Eurofirst 1594.2 -34.33 -2.11% -15.66

300 7%

Eurostoxx 3420.4 -93.84 -2.67% -20.42

50 8%

CAC 40 5862.6 -168.8 -2.80% -18.04

2 6%

Dax 30 12642, -360.6 -2.77% -20.41

67 8%

FTSE 7167.7 -144.5 -1.98% -2.94%

8 4

SMI 10629, -182.2 -1.69% -17.44

53 2%

The values ​​to follow in Paris and in

Europe: [WATCH/LFR]

CHANGES

Standby Price Var.% YTD

Euro/Dlr 1.0397 1.0439 -0.40% -8.54%

DLR/Yen 136.40 136.58 -0.13% +18.55

%

Euro/Yen 141.81 142.61 -0.56% +8.83%

DLR/CHF 0.9591 0.9552 +0.41% +5.14%

Euro/CHF 0.9973 0.9971 +0.02% -3.82%

Stg/Dlr 1.2101 1.2125 -0.20% -10.55

%

Index $ 105.34 105.10 +0.23% +9.54%

70 60

RATE

Last Var. Spread/Bund

r (pts)

Future Bunds 148.25 +1.260

00 0

10-year bunds 1.4100 -0.096

0

Bund 2 years 0.6960 -0.138

0

10-year OAT 1.9710 -0.082 +56.10

0

10-year Treasury 3.0556 -0.037

0

Treasury 2 years 2.9919 -0.061

0

OIL

(in Progress Previous Var Var. % YTD

dollars) ent

Light crude 109.22 109.78 -0.56 -0.51% +78.43

US%

Brent 115.63 116.26 -0.63 -0.54% +75.12

%

(French version Marc Angrand, edited by Kate Entringer)

.

Leave a Reply

Your email address will not be published.