currency indices

par Stephen Culp

NEW YORK (Archyde.com) – The New York Stock Exchange ended lower on Tuesday, following posting gains during the session, as the prospect of an imminent tightening of monetary policy by the United States Federal Reserve (Fed) once more weighed on high-growth stocks and benefited bond yields.

The Dow Jones index fell 0.26%, or 87.72 points, to 34,220.36 points.

The broader S&P-500 fell 15.08 points, or 0.34%, to 4,397.45 points.

The Nasdaq Composite fell for its part by 40.38 points (0.30%) to 13,371.57 points.

In the wake of the release of economic data in line with expectations, the three main Wall Street indices posted solid gains in early trading, benefiting from the easing of bond yields, before the rise in them reversed the trend. tendency.

This changeover took place in the wake of comments by a Fed official, Lael Brainard, who repeated the need for the central bank to fight “promptly” once morest the rise in inflation, which has reached an unprecedented peak. over several decades.

“Comments from Fed officials are more conservative than markets anticipated,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago.

Consumer prices in the United States rose 1.2% in March and their annual increase reached 8.5%, the highest for more than 40 years, shows data from the Department of Labor published in the daytime.

Among analysts, opinions differ on the persistence of inflation over the long term. Some believe that the inflationary wave might subside, others are not so sure.

“Inflation will last for a while,” said Peter Cardillo, chief economist at Spartan Capital Securities. “We might see a downturn in the summer months, provided we have lower agricultural and energy prices.”

This consumer price data has fueled speculation of another imminent Federal Reserve interest rate hike. “She can’t sit idly by,” said Paul Nolte.

The energy sector was the best performer among the major sectors of the S&P-500, with a gain of 1.7%, benefiting from the rise in oil prices.

(French version Jean Terzian)

by Laetitia Volga

PARIS (Archyde.com) – Major European stock markets are expected to fall on Tuesday at the open and government bond yields continue to climb on fears of runaway inflation that might lead to further monetary tightening. scale in the United States.

Futures contracts indicate a drop of 1.4% for the Paris CAC 40, 1.41% for the Dax in Frankfurt, 0.53% for the FTSE in London and 1.36% for the EuroStoxx 50 .

The theme of inflation is essential as the publication of monthly consumer price figures in the United States approaches (12:30 GMT), a further acceleration of which might confirm the Federal Reserve in the scenario of more monetary tightening. pronounced than expected.

The Archyde.com consensus expects consumer prices in the United States to rise 8.4% year on year in March, which would represent the largest increase in the index since January 1982.

“We’re pretty hawkish in terms of US rate hikes and we think it’s not just the extent of monetary tightening but its pace that’s going to impact investors,” Elizabeth Tian told Archyde.com. head of bond management at Citigroup in Sydney.

“Equity markets have been very strong…but we expect the Fed meeting in May to result in an announcement on tapering monetary easing and that’s when- where we might see volatility emerge in equities,” she added.

In Germany, inflation harmonized with European standards (HICP) reached its highest level in more than 40 years, at 7.6% year on year in March, according to final figures published by Destatis.

A WALL STREET

The New York Stock Exchange ended lower on Monday as the continued rise in bond yields weighed on major growth stocks.

The Dow Jones index fell 1.19% to 34,308.08 points, the S&P-500 lost 1.68% to 4,412.83 points, and the Nasdaq Composite fell 2.18% to 13,411.96 points. .

Futures currently suggest a decline of 0.25% to 0.4% at the open.

IN ASIA

At the Tokyo Stock Exchange, the Nikkei fell 1.81% to a four-week low as technology stocks, heavyweights in the index, fell in the wake of the negative session on Wall Street.

Resona Asset Management chief strategist Koichi Kurose pointed out that concerns over China’s COVID-19 lockdown and rising commodity prices were also affecting the trend.

In China, the large-cap CSI 300 (+1.53%) and the Shanghai SSE (+1.2%) index turned higher, a move analysts blame on the easing of regulations video games.

RATE

On the bond market, the yield on the ten-year US government bond rose by more than four basis points to 2.8224% following hitting its highest level in session since December 2018 at 2.8360%.

Its German equivalent gained in the first exchanges nearly three basis points, to 0.833% at its highest since July 2015. Ditto for the ten-year French, which climbed to 1.348%.

CHANGES

Variations are limited on the foreign exchange market where the dollar gleans 0.22% once morest a basket of reference currencies for its ninth session of consecutive increases under the effect of expectations of a rate hike by the Fed.

The euro gave up some ground, around 1.0863 dollars, following being supported the day before by the results of the first round of the presidential election in France.

OIL

Oil prices rose, erasing some of the previous day’s losses, as the market weighed the possibility of sanctions once morest the Russian energy sector and OPEC warned that it would be unable to offset the loss of Russian crude.

Brent gained 2.97% to 101.4 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 3.13% to 97.24 dollars.

On Monday, they both lost around 4% amid fears for demand with the health crisis in China.

(Laetitia Volga, edited by Bertrand Boucey and Jean-Michel Bélot)