The stock markets were nervous Tuesday in the face of the tension of sovereign rates and a long list of risks including those related to energy prices. These could weigh on the outlook for global growth.
The European indices were all retreating, from Paris (-1.40%) to Frankfurt (-0.78%) and from London (-0.41%) to Milan (-0.67%) around 09:35 GMT. In Switzerland, the flagship SMI index fell 1.62%.
Earlier, Asian markets ended up mixed with a small drop of 0.19% in Tokyo, but an increase of 1.2% in Hong Kong and 0.5% in Shanghai.
“While the concerns around Evergrande have not completely disappeared, it is now the soaring prices of raw materials, in particular energy, which are at the center of attention”, observes Franklin Pichard, director of Kiplink Finance .
Growth forecasts revised downwards
Energy tensions extend to China where they are explained by soaring coal and natural gas prices combined with Beijing’s efforts to reduce CO2 emissions and curb the growth in energy consumption.
“Goldman Sachs and Nomura downgraded their 2021 growth forecasts for China last night,” the second largest economy in the world where electricity shortages are slowing production and could further destabilize already struggling supply chains, said Jeffrey Halley, analyst at Oanda.
In this context of rising energy prices which raises fears of persistent inflation, yields continued to rise in the sovereign debt market, with the US ten-year rate climbing to 1.53% after rising to ‘to 1.51% the day before. The 30-year maturity took 6 basis points, exceeding 2%.
“While some explain the rise in sovereign yields to optimism linked to the economy, this seems difficult to imagine given the reality of declining consumer confidence as energy prices soar, when energy prices are soaring. supply chains are crippled, with winter on the horizon, ”said Michael Hewson, analyst at CMC Markets.
“This concern of more persistent inflation seems to be becoming a more consistent subject in the discourse of central bankers,” he observed, noting that the day before, the president of the New York branch of the American central bank John Williams had said the reduction in monetary support “may soon be justified”.
Fed Chairman Jerome Powell, who is due to be heard in the Senate on Tuesday, will reiterate that the powerful financial institution “will do all it can to support the economy until the recovery is complete”, according to his speech sent to the press on Monday.
Other risk than that of inflation, the US Congress has until Thursday evening, midnight, to approve a new federal budget if it wants to prevent its funds from being suddenly cut and federal services from being paralyzed.
The oil sector is still on the rise
Oil stocks were benefiting from the surge in oil prices, as the price of Brent surged above $ 80 early in the morning, its highest level since October 2018, amid expectations of higher demand and rising prices. concerns about the offer.
The prices of black gold continued to soar. A barrel of Brent from the North Sea for delivery in November rose 0.94% to 79.46 in London around 09:30 GMT.
In New York, a barrel of WTI for the same month gained 1.09% to 76.26 dollars.
This article was published automatically. Sources: ats / awp / afp