2023-08-08 16:09:02
In Paris, the CAC 40 lost 0.69% to 7,269.47 points, while the German Dax fell by 1.1% against 0.36% for the British Footsie.
The EuroStoxx 50 index ended the session down 1.12%, the FTSEurofirst 300 0.21% and the Stoxx 600 0.23%.
Chinese imports fell more sharply than expected in July, falling 12.4% against a consensus forecast of 5.6%.
To these data, which revived market concerns about the world’s second largest economy, was added a warning from Moody’s on the strength of US banks, the agency lowering the credit rating of ten banks.
Elsewhere, the Italian government presented a bill to tax the superprofits of the country’s banks, which contributed to worsening sentiment.
A set of indicators expected this week also encourages investors to be cautious.
US inflation will be released on Thursday, with the consensus giving an underlying indicator of 4.7% in July, compared to 4.8% in June. The figure will be closely scrutinized for any indications it may give as to the future path of Federal Reserve rates.
China’s inflation data, to be released on Wednesday, is expected for the opposite reason: Markets fear China’s economy may be in deflation, which could prompt China’s central bank to intervene to revive activity.
VALUES
The European banking sector fell by 2.7%, the largest sectoral decline in Europe, after the bill on the exceptional taxation of bank profits in Italy, and while the Moody’s agency is concerned about the solidity of American banks.
In Paris, Crédit Agricole lost 2.46%, BNP Paribas dropping 3.01% at the bottom of the CAC 40, while Societe Generale lost 1.70%. The sanction is even more significant on Italian banks, Intesa Sanpaolo having fallen by 8.67% in last place of the Stoxx 50.
The fall in Abrn’s assets has precipitated the group into last place on the Stoxx 600, down 11.67%.
Novo Nordisk finished in first place on the Stoxx 600, with a jump of 17.26%, after the group announced that its drug Wegovy lowered the risk of cardiovascular accidents by 20%.
A WALL STREET
US markets retreat amid caution.
At the time of closing in Europe, trading on the New York Stock Exchange indicated a decline of 1.03% for the Dow Jones, while the Standard & Poor’s 500 yielded 1.13% and the Nasdaq Composite 1.38 %.
RATE
European long yields slumped amid risk aversion and a reassessment of the path of rates, as the survey released on Tuesday by the European Central Bank showed a weakening in household inflation expectations.
The German ten-year yield plunged 12.1 basis points to 2.441%, while that of the two-year rate fell 7.3 bp to 3.076%.
The ten-year Treasury yield fell 6 bps to 4.018%, while the two-year yield edged up 1.9 bps to 4.7766%.
CHANGES
Against a backdrop of caution, traders are falling back on the dollar, which is up 0.54% against a basket of benchmark currencies.
Conversely, the revaluation of the trajectory of key rates in Europe is weighing on the euro, down 0.48% to 1.0949 dollars. The pound fell 0.47% to $1.2724.
OIL
Crude is down as Chinese data raises fears in markets that demand will be weaker than expected in the second half of the year.
Brent fell 0.33% to 85.06 dollars a barrel, US light crude (West Texas Intermediate, WTI) yielding 0.41% to 81.6 dollars.
(Written by Corentin Chapron)
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