MARCH-S-SYNTH-SE-5: Caution in Europe and on Wall Street before the Fed and the “techs”
by Laetitia Volga
PARIS (Reuters) – European stock markets ended slightly down on Tuesday and Wall Street was trading in the red as it closed in Europe, as investors digesting a salvo of corporate results ahead of the US Federal Reserve’s monetary policy decision (Fed) Wednesday.
In Paris, the CAC 40 lost 0.03% to 6,273.76 points. The British Footsie ended down 0.5% and the German Dax 0.31%.
The EuroStoxx 50 index lost 0.22%, the FTSEurofirst 300 fell 0.15% and the Stoxx 600 fell 0.08%.
In New York, the S&P 500, the Dow Jones and the Nasdaq yielded between 0.1% and 0.3% at the close of European markets.
Investors should remain cautious until Wednesday night’s announcements from the Federal Reserve which began its two-day meeting on Tuesday. The Fed should confirm that it will maintain its monetary policy to support the economy.
The trend on both sides of the Atlantic is also driven by the acceleration of corporate earnings publications.
The market especially awaits those of the technological giants of Wall Street. Alphabet, parent company of Google, and Microsoft will release their quarterly after the close while Apple, Facebook and Amazon are expected later this week.
These five companies combined represent approximately 40% of the market capitalization of the S&P 500 Index.
VALUES IN EUROPE
In Europe, Michelin fell by 1.60% after the publication of a quarterly turnover in line with expectations and the confirmation considered prudent of its outlook for this year.
Video: Darkened economic outlook, the ECB maintains its policy of supporting the economy (Euronews)
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BioMérieux, the red lantern of the Stoxx 600, fell 6.89% after lowering its forecasts
Swiss bank UBS lost 1.98% after posting a charge of $ 774 million in Q1 linked to the fall of Archegos fund while HSBC gained 4.18% in London after posting better than expected profit .
Excluding results, the title EDF gained 5.42% after information evoking a close agreement for the reorganization of the French group, according to market sources.
Tarkett soared 26.42% following an offer involving a stake in the investment company Wendel deemed favorably by analysts.
RATES / CHANGES
Benchmark bond yields ended virtually unchanged at -0.25% for the ten-year German Bund and 0.0025% for its French equivalent.
In the United States, the yield on ten-year Treasuries gained two basis points to 1.5915%.
Investors will closely follow the course at the end of the day of the US Treasury’s auction of $ 62 billion in seven-year securities as weak demand during the equivalent February transaction triggered a massive sell-off. .
On the foreign exchange market, the index which measures the fluctuations of the dollar against six benchmark currencies is up slightly while the euro is unchanged at 1.2079 dollars, close to the two-month peak reached on Monday at 1.2116 .
In the United States, the Conference Board’s consumer confidence index climbed to 121.7 in April, its highest level in 14 months, while the Reuters consensus put it at 113.0 after 109.0 the previous month .
Oil is rising after OPEC + ‘s decision to stick to the plan to gradually ease the measures to regulate its production from May, despite the resurgence of COVID-19 cases in India, Brazil and Japan which could hurt demand.
The barrel of Brent gained 0.43% to 65.93 dollars and that of US light crude 0.78% to 62.39 dollars.
Copper prices hit a high since March 2011 on the London Metal Exchange at $ 9,965 per tonne, as concerns about the impact on supply of strikes in Chile, the world’s largest producer, coupled with strong demand strengthening shortage forecast this year.
(edited by Jean-Stéphane Brosse)