The stock market rally ends, caution before inflation US


by Marc Angrand

PARIS (Reuters) – The european stock markets had ended lower on Tuesday on renewed risk aversion that have interrupted the rebound of the stock on the eve of the publication of the long awaited monthly statistics on inflation in the United States, likely triggering a new surge in bond yields.

In Paris, the CAC 40 closed with a decline of 0.60% (30,82 points) to 5.109,24 points and in Frankfurt the Dax dipped 0.7%. The index EuroStoxx 50 was sold for 0.81%, the FTSEurofirst 300 of 0.56% and the Stoxx 600 0,63%.

In London, the FTSE 100 has grappillé 0.13 per cent through the maintenance of proper values for mining.

At the time of the close in Europe, Wall Street withdrew after 3% over the two previous sessions: the Dow Jones declined 0.37 percent, the Standard & Poor’s 500 to 0.21% and the Nasdaq Composite up 0.05%.

On the market of government bonds, the yield on u.s. Treasury ten-year is then displayed to 2,849%, slightly down on the session but near the peak more than four years, reached Monday at 2,902%.

The ten-year old German, 0,745%, is changing him five basis points below its high of last week to 0,803%.

The u.s. department of Labor must publish on Wednesday at 13: 30 GMT the monthly statistics on consumer prices, an appointment very awaited after the correction phase, traversed by the shares amid fears of a resurgence of inflation and the acceleration of the rise in interest rates.

Figures above expectations could revive these fears and lead to a new shake on the market.

“Even if we retain a position to ‘overweight’ on the global equity, it seems that the uncertainties of the market in bond, which will make the path of the rising more bumpy than what we were used to,” says Mark Haefele, head of investment of UBS Wealth Management, in a note.

“If the sell-off in the bond markets should continue, the stock markets could suffer new setbacks.”

The monthly survey by Bank of America (NYSE:BAC) Merrill Lynch on the asset allocations, shows that investors have significantly reduced the allocations to equities in recent weeks to reduce their exposure to risk.


The Vix volatility index remains oriented upward 26,08 points, virtually mid-way between its low point in January as 9,0 and its peak of last week to a little over 50.

On the foreign exchange market, the dollar, widening its loss in the face of a basket of reference currencies, the”dollar index” transferor 0.64 per cent. The yen has touched a high of five months against the greenback and the euro rose to 1,2360 dollar.

Values in Europe, Kering (PA:PRTP) has lost 3.95% and, the largest decline of the CAC, after record results.

Even after this decline, the title retains an increase of 57.3% year on year, far and away the best performance of the index.

The telecom sector (-1,10%) blamed the decline sector the more marked of the day, dragged by disappointing performance of the belgian Telenet, which fell from 5.46%.

The largest decline on the Stoxx 600 is for the German producer of copper, Aurubis, which has dropped out of 88,04% after the results in the consensus.

Has the upside, Ubisoft (PA:UBIP) (+6,15%) used quarterly better than expected, and Publicis (PA:PUBP) (+3,77%) of the securing of a major, multi-year contract for the advertising of the brand Mercedes-Benz in 37 countries.

On the oil market, the decline in the dollar does not prevent the decrease of the current in response to the latest monthly report from the international energy Agency (IEA), which underlines that the offer could increase more quickly than demand this year.

The light crude to u.s. West Texas Intermediate, WTI) is income under 59 dollars, the Brent under 62,50.

(Edited by Wilfrid Exbrayat)

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