Paris ended down 0.14%, Frankfurt 0.72% and London 0.61%. As for the Swiss Stock Exchange, it saw its flagship SMI index close down 0.76%.
Stocks fell again on Tuesday as investors limited risk-taking ahead of US and European central bank meetings next week.
The market, deprived of macro or microeconomic news, lacked the conviction to continue the rebound that began in mid-October. Paris ended down 0.14%, Frankfurt 0.72% and London 0.61%. As for the Swiss Stock Exchange, it saw its flagship SMI index close down 0.76%.
On Wall Street, the Dow Jones lost 0.93%, the Nasdaq index yielded 1.73% and the S&P 500 index 1.31% around 6:20 p.m. “Next week’s Fed meeting should set the stage for the new year and decide whether the equity market will continue its recovery or end the year with a fate similar to this year,” according to a rating from CMC Markets.
Friday’s release of strong US jobs numbers for November prompted investors to be cautious about expectations for monetary easing from the US central bank (Fed). “The jobs report complicates the task of the Fed, given the persistence of wage pressures and the sluggishness of the labor supply,” writes Axel Botte, international strategist for Ostrum AM.
A 50 basis point (0.5 percentage point) increase in the US Federal Reserve (Fed) key rate next week instead of the 75 basis point increase at the institution’s last meetings seems to have been taken for granted by the market. Investors are mainly looking to know what will be the final level sufficient to stem inflation in the world’s largest economy.
The meeting of the European Central Bank on December 15 should also arouse a great deal of expectation as the economy in the euro zone is weakened by the consequences of the war in Ukraine. Australia’s central bank on Tuesday raised its main interest rate by 0.25 percentage points, an increase in line with investors’ expectations.
Bond yields fell after rising the day before: the US 10-year debt rate, the benchmark maturity, stood at 3.56%.
Vodafone aphone
Vodafone shares ended down 1.92% at 89.27 pence the day after the announcement of the departure, within a few weeks, of chief executive Nick Read after four years at the head of the British telephone group. , in a context of poor performance.
The title has melted by more than 20% since the beginning of the year and is worth about three times less than five years ago.
Rolls Royce powered
Rolls Royce stock soared 3.20% to 93.49 pence after a big contract with the US military to supply engines for new V-280 helicopters that could replace ‘Black Hawks’, according to a note from Michael Hewson of CMC Markets.
Porsche gallops towards the Dax
After rising nearly 30% since its IPO less than three months ago, the German luxury car manufacturer Porsche (-1.46% to 104.88 euros) will enter the Dax, the flagship index Frankfurt, where it will replace the sports equipment supplier Puma on December 19 (-0.85%).
RWE wants Gazprom to pay
The German energy company Gazprom (+1.5% to 42.28 euros) announced the referral to an arbitration tribunal against Gazprom to be compensated for the cuts in the delivery of Russian gas to Germany, a few days after a similar announcement by the Uniper group.
On the side of oil and currencies
Brent oil briefly slipped below the symbolic bar of 80 dollars a barrel on Tuesday, weighed down by a potential burst of rate hikes from the major central banks, amid uncertainty over the impact of new sanctions against Russian crude. Around 6:00 p.m., Brent from the North Sea for delivery in February, the benchmark for black gold in Europe, lost 3.14% to 80.08 dollars, when its American equivalent, WTI for delivery in January, fell by 2 .90% to 74.72 dollars a barrel.
The euro advanced 0.11% against the greenback, to 1.0504 dollars.
Bitcoin was stable against the dollar (+0.09% to 16,986 dollars).