© Reuters. THE EUROPEAN STOCK MARKETS FALLING AT MID-SESSION
by Laetitia Volga
PARIS (Reuters) – The european markets are evolving into lower Wednesday at mid-session and Wall Street is expected on the same trend, due to concerns related to the rise in bond yields which obscures the results welcome to Kering (PA:PRTP), or Credit Suisse.
In Paris, the CAC 40 lost 0.9%, 5.395,16 to 11: 15 am GMT. In Frankfurt, the Dax yield of 1.85% and the FTSE in london 0.74 per cent.
Index pan-european FTSEurofirst 300 gives up 1.1 per cent, the EuroStoxx 50 for the euro area 1.24 percent and the Stoxx europe 600 index’s 1.1%.
The index futures new york indicate an opening of Wall Street and a decline of 0.4% for the Dow Jones and the S&P-500 and 0.5% for the Nasdaq.
The main explanation of the general decline of the shares, the rise in yields on sovereign has been accelerating, raising questions about the attractiveness of the market shares.
The yield on Treasuries to ten years and increased up to 3,0320%, after having passed the day before the symbolic threshold of 3%. In the wake of the ten-year-old american, its German equivalent, the reference for the euro area, has hit 0,655%.
The increase in long-term rates in the United States is the result of increased financing needs of the u.s. Treasury, and a rise in inflation expectations fuelled by the recent rise of oil and raw materials.
“The global economy is now in better shape, the reason behind these higher yields,” says Seamus Mac Gorain, manager-bond at JPMorgan (NYSE:JPM) Asset Management.
“We expect the Treasuries to 10-year finishing the year between 3% and 3.5%. An increase beyond this level would likely require an acceleration of inflation in the euro area and in Japan, which is not clear yet”, he adds.
In this context of tensions in bond, the meeting of the european central Bank (ECB) on Thursday will garner the full attention of the market.
On the foreign exchange market, the greenback ahead of a concert with rising yields and gains of 0.3% against a basket of reference currencies, also helped by the lull in trade tensions and diplomatic in recent weeks. As for the euro, it lost 0.25 percent against the dollar.
STM EMPHASIZES THE APPLICATION OF SMARTPHONES
The values, very few sectors escaped the downturn in general starting with the compartment of the distribution (+0,87%), boosted by the increase of 5,96% of Kering, which evolves to a historical high after once again exceeded all market expectations in the first quarter thanks to the continued growth of non-standard house of Gucci.
Sky jumped up 4.12% on the London stock Exchange after an offer from the cable operator, u.s. Comcast (NASDAQ:CMCSA) to 22 billion pounds (25,15 billion euros), 16% higher to that of Fox, who had already received the approval of the first european group of pay-tv. The media sector benefits, with an increase of 0.17%.
In Paris, STMicroelectronics (PA:STM) takes 4,45% after have sent a positive signal about future demand for its products for mobile telephony in the second half, as investors worry about the slow start-up of the iPhone X Apple (NASDAQ:AAPL).
Bic gained 5.59 percent, the group managed to contain the decline in its operating margin in the first quarter, reassuring the market.
Credit Suisse ahead 4.1% after reporting its best quarterly results since the launch in 2016 by the director-general Tidjane Thiam of a restructuring plan, results mostly worn by the asset management.
In contrast, Tarkett (PA:TKTT) unscrewed 11.77% due to a quarterly publication disappointing.
On the oil market, the courses are slightly on the rise: Brent is evolving at 74 dollars per barrel and the light crude american takes 0,21% close to 68 dollars per barrel.
(With Marc Jones, edited by Blandine Hénault)