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Global equity markets were trending lower on Wednesday, as in previous days, worried about the resurgence of the COVID-19 pandemic and the central banks’ response to inflation.
The New York Stock Exchange was heading towards an opening in the red. European indices, which had started clearly in the green, were taken with risk aversion.
Stock market indices at 8:16 a.m.
In the United States, futures contracts Dow Jones dropped 129.00 points (-0.36%) to 35,637.00 points. Futures contracts S&P 500 lost 15.50 points (-0.33%) to 4,673.00 points. Futures contracts Nasdaq yielded 71.75 points (-0.44%) to 16,240.25 points.
In Europe, the results were mixed. In London, the FTSE 100 advanced 10.92 points (+ 0.15%) to 7,277.61 points. In Paris, the CAC 40 was down 23.81 points (-0.34%) to 7,020.81 points. In Frankfurt, the DAX decreased by 113.74 points (-0.71%) to 15,823.26 points.
In Asia, the Nikkei of Tokyo plunged 471.45 points (-1.58%) to 29,302.66 points. For its part, the Hang Seng of Hong Kong gained 33.92 points (+ 0.14%) to 24,685.50 points.
On the oil side, the price of a barrel WTI American was down US $ 0.18 (-0.23%) to US $ 78.32. Barrel of Brent from the North Sea fell from US $ 0.17 (-0.21%) to US $ 82.14.
In Germany, entrepreneur morale fell in November for the fifth time in a row amid rising COVID-19 infections and persistent shortages.
In Asia, Chinese markets remained cautious and Tokyo retreated.
“In general, the economy continues to lose momentum,” comments Jens-Oliver Niklasch, economist at the public bank LBBW, after the publication of the IFO index of German entrepreneurial morale.
“For now, the situation related to COVID, issues around supply chains and rising inflation should weigh on businesses,” he continues, expecting a “end of the year [qui] may be gloomy ”.
In Europe, the World Health Organization (WHO) fears 700,000 additional deaths until spring 2022. The EU disease agency on Wednesday called on member states to take “urgent” action.
Faced with the decline in the effectiveness of vaccines after six months, Tangi Le Liboux, strategist at Aurel BGC, also fears a “more lasting than expected disorganization of supply chains” and wonders about the “potential impact on ‘inflation”.
The latter is all the more monitored as it seems to be more durable than anticipated by central banks, especially in the United States where voices in favor of further monetary tightening are increasingly being heard.
In this context, the minutes of the last monetary policy meeting of the Fed will be particularly scrutinized Wednesday evening by investors.
With the US market closed Thursday for Thanksgiving, all weekend indicators will be released this Wednesday, including a second estimate of third-quarter GDP, durable goods orders in October, consumer spending in the same month and the Fed’s favorite barometer, the October PCE price index.
US Treasury Secretary Janet Yellen has estimated that inflation is expected to moderate next year and fall back to 0.2% or 0.3% on a month-to-month basis in the second half of 2022.
Values in the technology sector continued to lose ground on Wednesday, after a decline that began on Monday.
“Investor confidence” has been “shaken” by “the prospect of tightening coronavirus restrictions in Europe,” according to Michael Hewson, which weighs on risky assets like tech stocks.
In Paris, Dassault Systems was down 3.17%, Worldline 2.23% and Capgemini of 1.90%, the three occupants the last steps of the CAC 40.
In London, Darktrace lost 3.93%. The British cybersecurity company was challenged on its model and the tumultuous trajectory of its action during its first listed company AG on Wednesday.
The European currency (-0.30% to 1.121 3 US dollar at 7:35 a.m. Quebec time) began to fall again after a rebound the day before, and touched a new low since June 2020, in the face of the surge of COVID-19.
the bitcoin lost 1.86% to US $ 56,640.