EUROPEAN STOCK MARKS ENDED SLIGHTLY HIGHER ON TUESDAY
by Claude Chendjou
PARIS (Reuters) – European shares ended slightly higher on Tuesday thanks in particular to a technical rally and gains in mining shares, while on Wall Street, indices moved wildly mid-session after the release of the first quarterly results of the distribution sector.
In Paris, the CAC 40 ended with a modest gain of 0.34% at 6,592.58 points. The British Footsie advances 0.36% and the German Dax 0.68%.
The EuroStoxx 50 index gained 0.41% and the FTSEurofirst 300 0.27%. The Stoxx 600 gained 0.16%, posting a fifth straight session in the green.
“A lot of this (rallies) is based on technicals and dynamics, but the fundamentals haven’t changed,” said Seema Shah, strategist at Principal Global Investors, noting in particular the deterioration in several economic data.
The ZEW economic research institute’s survey published on Tuesday showed that investor confidence in Germany had deteriorated further since early August with the index dipping to -55.3 as Europe’s top economy is already on the brink. of the recession.
In the United Kingdom, the labor market began to slow in the second quarter and inflation cut wages, according to official statistics published on Tuesday.
Caution was also in order in the markets before the publication this Wednesday of the figures of the second estimate of the gross domestic product (GDP) of the euro zone and the minutes of the last monetary policy meeting of the US Federal Reserve (Fed ).
EUROPEAN STOCKS In Europe, commodities (+3.23%) and the defensive telecoms (+1.65%) and utilities (+1.29%) sectors were among the biggest gainers.
Basic resources benefited from strong results from BHP, with mining giant BHP gaining 5.48% in London.
Food delivery specialist Delivery Hero (+5.44%) was buoyed by its Q3 growth forecast, while jeweler Pandora and hearing aid maker Sonova fell 6.14% and 15.89% after the publication of its quarterly results.
Excluding account postings, Philips gained 2.02% following the unexpected announcement that its chief executive, Frans van Houten, has been replaced by Roy Jakobs, who is responsible for the group’s Connected Care activities, while the UK cybersecurity firm Darktrace jumped 24.2% after talks with US private equity. signature Thomas Bravo.
ON WALL STREET
At the time of closing in Europe, the Dow Jones and the Standard & Poor’s 500, supported by the distribution sector (+2.11%), gained 0.75% and 0.27% respectively, while the Nasdaq it fell 0.1%, affected by the decline in growth stocks (-0.18%) and fears of a deterioration in the economic situation.
Walmart jumped 6.13% after announcing on Tuesday that it now expects a smaller-than-previously anticipated drop in full-year profit, trailing Kohl’s, Macy’s, Costco Wholesale and Best Buy, which rose 5.1% to 8, 3%.
DIY and home improvement store giant Home Depot, meanwhile, is up 5.49%, after quarterly sales beat expectations.
THE INDICATORS OF THE DAY
Industrial production accelerated in July in the United States, with the Federal Reserve reporting a 0.6% rise, while analysts polled by Reuters projected average growth of just 0.3%.
The dollar, which hit its highest level since Aug. 8 on Tuesday against a basket of benchmark currencies, was flat at the close in Europe. The dollar is benefiting from expectations that the US economy will weather a potential global recession better than others and the backdrop of faster rate hikes by the Fed.
The euro, instead of 0.1%, was brought to 1,017 dollars, the géant russe Gazprom ayant declared that the prix du gaz en Europe pourraient augmenter de 60% pour dépasser 4,000 dollars (3,946.94 euros) les 1,000 mètres cubes this winter.
“The market is gradually trading in a bearish scenario for this winter in Europe and that is the main reason why the dollar has remained so strong,” said Adam Button, currency analyst at ForexLive.
In the bond market, the yields of US bonds rose after the results of the distribution giants, which confirmed the scenario according to which the Fed has sufficient margins to raise its rates further without seriously damaging the economy: that of the term ten years old. 4 basis points to 2.8349% and the two-year 3.3 points to 3.2365%.
In Europe, the 10-year German Bund yield, a benchmark in the euro zone, ended up about eight points to 0.973%.
Oil prices, which fell about 3% on Monday, are weighed down by concerns about a drop in demand in China and the pending outcome of talks on the nuclear deal with Iran that could allow Tehran to resume exports. of crude.
Brent fell 2.53% to $92.69 a barrel and US light crude (West Texas Intermediate, WTI) fell 2.82% to $86.89 a barrel.
(Some data may show a slight change)
(Written by Claude Chendjou, edited by Matthieu Protard)
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