Stocks and rates are falling due to fears about the global economy

PARIS (Reuters) – Wall Street is expected to fall at the opening, and European stocks fell in the middle of Thursday’s session, investors fear that tightening the Federal Reserve’s monetary policy (Fed) in the face of inflation will help slow the economy. Futures. contracts for the New York indexes indicate a decrease of 0.11% for the Dow Jones, 0.59% for Standard & Poor’s-500 and 1.05% for the Nasdaq.

In Paris, CAC 40 lost 2.24% to 6,129.27 around 11:35 GMT. In Frankfurt, the Dax index fell 1.92%, and in London, the FTSE lost 1.93%.

The pan-European FTSEurofirst 300 fell 1.6%, the EuroStoxx 50 fell 2.17% and the Stoxx 600 fell 1.78%. In the United States, which was 8.3% in one year in April, is the main cause of the overall decline. in stocks and bond yields.

“Markets fear that central banks, in trying to curb inflation, could trigger a recession or at least a sharp economic downturn. If you look at consumer prices, it may be too early to announce a peak in inflation,” Luke said. Philip at SYZ Private Banking.

The 12:30 GMT publication of producer prices in the United States is set to spark a debate over Fed rates.

RATE

Government bond yields fell sharply: the ten-year German bond fell 14.1 basis points to 0.86% and its French counterpart fell more than 25 points to 1.39%, the lowest level since April 29.

In the United States, U.S. inflation statistics also smoothed the yield curve of Treasury bonds: the gap between the two- and ten-year yields fell below 10 basis points on Wednesday, the lowest in nearly two weeks. Now it shows about 24.63.

Yields on ten-year Treasury bonds show 2.8299% versus 2.9246% at Wednesday’s close.

VALUABLE VALUE STREET VALUES

Stock growth should again weigh on the US session, including the Nasdaq Composite, which has already fallen more than 3% on Wednesday.

Meta, Microsoft, Alphabet, Apple, Amazon and Tesla fell 1% to 2.1%.

Shares of Apple fell 5.2% the day before, losing its place as the world’s first market capitalization in favor of Saudi Aramco. The oil giant, which has benefited from rising oil prices, has a capitalization of about $ 2.426 billion, and Apple – 2.371 billion.

VALUES IN EUROPE

In the stock market, all European sectors are in the red, and the biggest decline is in basic resources (4.27%) and automotive (2.64%).

In Paris, heavyweights Kering, LVMH and Hermès lost 4.14% to 4.63%.

Tod’s fell 5.83% as the Italian luxury footwear group announced that containment measures in China had affected its effectiveness in March.

In Frankfurt, Commerzbank, Siemens and Heidelbergcement fell from 2.9% to 5.12% after the publication of their results. Semiconductor maker STMicroelectronics stands out (+ 3.14%) after announcing plans to achieve annual sales of more than $ 20 billion (€ 19.04 billion) by 2027 due to continued high demand from the automotive and industrial sectors and smartphone manufacturers.

CHANGES

The “dollar index”, which measures the fluctuations of the US currency against the reference basket, has gained an advantage due to the status of safe haven, which is the highest figure in almost 20 years.

The euro fell about 1% to $ 1.0411, the lowest level since January 2017.

The pound reached a two-year low against the dollar after announcing weaker-than-expected growth in the British economy in the first quarter and an unexpected contraction in March alone.

The general climate is also negatively affecting cryptocurrencies, starting with bitcoin, which fell to $ 25,401.05 for the first time since the end of 2020.

OIL

Oil prices are falling again due to economic concerns and fears of recession.

Brent lost 1.05% to 106.38 dollars per barrel, and light American oil (West Texas Intermediate, WTI) fell 0.92% to 104.74 dollars.

(Inscription: Leticia Volga, edited by Kate Entringer)