Cac 40 erases Monday's bounce, higher yields weigh on market news

Cac 40 erases Monday’s bounce, higher yields weigh on market news

Up on Monday while Wall Street was closed, the Paris stock market fell on Tuesday. The market is awaiting the new quarterly releases from the US banks without losing sight of the possibility of the Federal Reserve interest rate tightening.

Just before ten o’clock 40 It lost 1.03% to 7,127.51 points in a turnover of 480 million euros.

Asian markets were generally lower this morning as expectations of monetary tightening in the US pushed the yield on US 10-year bonds to new levels in more than seven years. Thus, it reached 1.8566% in Asia this morning, compared to 1.7841% in New York on Friday evening, before returning to about 1.8270%. The two-year yield has crossed the 1% mark for the first time since the end of February 2020.

Goldman Sachs on the grill

The Nikkei 225 closed down 0.3% in Tokyo this morning. It was no surprise that the Bank of Japan kept monetary policy unchanged, but raised inflation expectations for the fiscal year beginning in April to 1.1% from 0.9% to account for higher energy prices. GDP growth forecast was raised from 2.9% to 3.8%. In Hong Kong, the Hang Seng Index is down 0.7% as the close approaches, while the Chinese CSI 300 Index is up 1%.

Contracts futures With US indices lower, the Nasdaq 100 deadline is down nearly 1% just hours before Wall Street reopens after the Martin Luther King Day holiday. Major global financial centers are losing ground this year, hampered by the decline of Wall Street. Far from the change in the US Federal Reserve’s tone, investors are questioning whether companies will be able to revive market sentiment by weathering higher prices and pressures from Omicron’s variable expansion.

Following JPMorgan Chase, Citigroup and Wells Fargo last weekend, Goldman Sachs will unveil fourth-quarter accounts before Wall Street opens. It will be interesting to see if investors tend to come back [sur les actions] Now earnings season has begun, notes Craig Elam, senior market analyst at Oanda. The emergence of Omicron may mean that many companies will not achieve the kind of performance that was expected, but that does not mean that there will not be a number of positive takeaways. ‘, was the nuance.

Technology and luxury struggle

On the macroeconomic front, the ZEW Institute will publish an index of economic confidence as seen by investors in Germany for January at 11 am. In the US, the New York Federal Reserve will unveil its manufacturing activity index for the same month at 2:30 pm.

Price pressures continue to weigh on technology stocks. capgemini lose 1.7%, Dassault Systems 2 and STMicroelectronics 1,4%.

Winners in recent years in the stock market, luxury stocks suffer from profit taking. LVMH yields 1.9%, dry 2.7% and Hermes 1.7%.

Renault by 1.4% and Stilants by 1.3% while new car registrations fell by 23% within the European Union in December. equipment supplier plastic for everyone Loser 3.6%.

The largest decrease in Cac 40, Schneider Electric by 2.4%. Strong demand for decarbonization and electricity solutions is contributing to the shortage of semiconductors, said Jean-Pascal Tricoire, group CEO on Bloomberg Television. ” We are reviewing our strategic relationship with our suppliers and re-adjusting our products to our customers “, He said.

orange Salmon 0.8%. Goldman Sachs lowered the value from “neutral” to “sell” and lowered its target price from €11 to €9.20.

Sodexo 1.9% gain. Bain Capital is considering taking a stake in the benefits and rewards business of Collective Catering Group, which is looking for investors who can help fund its recovery, according to sources cited by Reuters.

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