Lower shares in Europe, rebound on Wall St, the dollar goes up


© Reuters. THE EUROPEAN STOCK MARKETS END LOWER

by Marc Angrand

PARIS (Reuters) – The european markets finished lower Tuesday but above their low of the day, the rebound of Wall Street at the opening which allowed them to limit their decline without allay completely the anxieties related to values in technology on the one hand, the impact of trade tensions.

In Paris, the CAC 40 finished down 0.29% (15,18 points) 5.152,12 points after the abandonment of up to 0.94%.

In London, the FTSE 100 lost 0.37 percent and in Frankfurt the Dax was down 0.78%. The index EuroStoxx 50 has disposed of 0.43%, the FTSEurofirst 300 0.33 percent and the Stoxx europe 600 index was 0.49%.

At the time of the close in Europe, Wall Street is going in the green, the Dow Jones taking on 0,51%, the Standard & Poor’s 500 to 0.31% and the Nasdaq Composite to 0.19%. All three dropped off, however, that a portion of their losses of the previous day (-1,9% for the Dow, -2,23% for the S&P, -2,74% for the Nasdaq).

The volatility index, us, him, withdrew a little above 22, against a peak at 25,72 Monday.

The decline of Facebook (NASDAQ:FB) (+0.13 per cent on Tuesday), Tesla (+3,63%), and Amazon (NASDAQ:AMZN) (+0,16%) in recent weeks and rising tensions in international trade, exemplified Monday by the new customs duties on chinese 128 u.s. products, contributing to the nervousness of investors and fueling the questions about the valuation of equities and the upside potential of the stock markets.

YIELDS GO BACK

In Europe, the final numbers of surveys monthly PMI survey of purchasing managers have also given rise to interpretations that are sometimes contradictory: if they are still at high levels, they reflect a slowdown in the growth of manufacturing activity.

As we approach the beginning of the period of the publications of quarterly results, many observers stress, however, that the prospects of profits remain strong.

“Since the beginning of the year, the EPS (earnings per share) of enterprises have been revised 0.85% decline, while on average, in the past, the EPS are already reduced by 4% at this time of the year”, note, as well LBPAM. “There’s a resilience in EPS expected, which shows a revision very limited growth expectations.”

On the bond markets, the smes have encouraged the rise in government bond yields in the euro area: the ten-year old German, who had touched Thursday a low of two and a half months 0,473%, is income to more than 0.5%. The same movement can be observed on the market for Treasuries, where the ten-year goes back to more than 2,775%, compared to 2,717% on Monday.

Side currencies, the dollar resumed a few colors thanks to the rebound of Wall Street, which penalizes the currencies considered more safe, like the yen or the swiss franc. The euro gives up about 0.25% against the greenback to 1,2270.

SODEXO YET SANCTIONED, THE OIL IN THE FORM

Values in Europe, Sodexo (PA:EXHO) and Elior (PA:ELIOR are the two largest declines in the Stoxx 600, the first having caused the second in its wake after several downgrades to recommendation in response to the warning about the result of last Thursday.

Air France-KLM (PA:AIRF) (-4,37%), for its part, suffered from the expected impact of the strike of a part of his staff, to defend wage claims.

The largest decline in the SBF 120 returns to TF1 (PA:TFFP), which sold 5,71% in reaction to a series of factors considered adverse.

The increase, the compartment of the oil and gas (+0.66%) in displays the best sectoral performance of the day after a positive opinion of Barclays (LON:BARC) on the “majors”. In Paris, Total (PA:TOTF) has gained 1.25% and in Milan, Eni has gained 1.01 per cent. The sector has also benefited from the good performance of oil prices, with Brent having crossed the us $ 68 per barrel.

Fiat Chrysler Automobiles (NYSE:FCAU) (+7,32%) was hoisted at the head of the Stoxx 600 after a jump of 14% of its sales in the United States last month (+45% for the single brand Jeep).

(Edited by Bertrand Boucey)

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