Europe ends lower, new sanctions against Moscow – 03/24/2022 at 19:09

EUROPEAN STOCK EXCHANGES, EXCEPT LONDON, END LOWER

EUROPEAN STOCK EXCHANGES, EXCEPT LONDON, END LOWER

by Claude Chendjou

PARIS (Reuters) – European stock markets, with the exception of London, closed lower on Thursday, while Wall Street, backed by cheap buying of technology shares, moved into the green mid-session as Westerners gathered in Brussels, they decided on new sanctions against Russia at the dawn of the second month of the war in Ukraine.

In Paris, the CAC 40 ended down 0.39% at 6,555.77 points. The British Footsie, however, nibbled on 0.09%. The German Dax lost 0.07%.

The EuroStoxx 50 index fell 0.15%, the FTSEurofirst 300 0.09% and the Stoxx 600 0.21%.

The United States, the European Union, the United Kingdom and Canada imposed new sanctions on Russia on Thursday, targeting dozens of defense companies, elected officials, as well as the CEO of Sberbank, Russia’s top bank.

The announcement of these sanctions coincides with the holding of NATO, G7 and European Union summits aimed at showing Western unity against Russia, which invaded Ukraine on February 24, which Moscow describes as a “special operation” .

On the military front, the Ukrainian president, Volodimir Zelensky, asked the NATO countries to increase their military aid to deal with the Russian army, which he accused, without supporting evidence, of using phosphorus bombs.

“Even if stock markets are trying to recover from their correction, markets are fundamentally riskier and more uncertain than they were before Russia’s invasion of Ukraine,” said Richard Saperstein, chief investment officer at Treasury Partners.

In addition, he believes that the unprecedented sanctions against Russia may trigger unforeseen financial, energy and agricultural shocks.

VALUES IN EUROPE

Risk aversion in Europe resulted in either a drop in most sectors or very weak earnings. However, basic resources (+0.12%), energy (+0.04%) and technology (+0.14%) stocks outperformed on opportunity buying and uncertainty over geopolitical tensions.

Stmicroelectronics gained 2.03%, while oil companies BP and TotalEnergies advanced 0.33% and 0.75% respectively.

In cars, Renault, the automaker most exposed to Russia, fell 0.78% after announcing it was suspending production at its Moscow plant and considering the future of its majority stake in Avtovaz.

Meanwhile, Daimler Truck jumped 7.08% as the automaker said it anticipated limited impact from the Ukraine crisis and COVID-19 on its business this year.

The banking compartment, also threatened by the Russian-Ukrainian conflict, fell 0.66% with Société Générale (-1.14%), despite the publication of a study by the rating agency Fitch Ratings, which judges “manageable ” the impact of the crisis .

A WALL STREET

At the close in Europe, the Dow Jones advanced 0.57%, the Standard & Poor’s 500 0.79% and the Nasdaq 0.97%, with the indices supported mainly by the technology compartment (+1.52%) .

“These are clearly bargain buys,” says Greg Swenson, a partner at Brigg Macadam. “It will continue as long as there are geopolitical tensions like the war in Ukraine,” he adds.

Alphabet, Apple, Tesla, Meta Platforms and Nvidia went from 0.6% to 8.6%. Car rental company Hertz Global (+3.6%) also added Tesla’s Model Y to its fleet of electric vehicles, while Uber Technologies (+4.4%) benefited from the signing of an agreement to integrate New York City taxis in their shared ride service. reservation request.

THE INDICATORS OF THE DAY

PMI surveys of activity in Europe for the month of March showed stronger than expected growth thanks to the lifting of health restrictions, with the composite PMI index for the eurozone at 54.5 against a consensus of 53.9 .

In the United States, jobless claims last week fell more than expected to 187,000, the Labor Department said.

CHANGES

The dollar appreciated, 0.12%, for the fourth time in five sessions against a basket of international currencies after the publication of unemployment claims figures and other data that advocate a rate hike in the US.

The euro is practically stable against the dollar, at 1.1002 dollars.

The Norwegian krone lost 0.27% against the dollar after the country’s central bank’s key rate was raised, as expected, to 0.75%.

QUALIFY

In bond markets, yields are rising, supported by expectations of rising credit costs. More and more members of the US Federal Reserve, such as Loretta Mester, president of the Cleveland branch, are advocating for stricter measures against inflation.

In Europe, Frank Elderson, a member of the board of governors of the European Central Bank (ECB), said on Thursday that the institution could raise interest rates this year.

The ten-year Treasury bond yield rose 1.4 basis points to 2.335%. The 10-year German Bund ended up 4.8 points to 0.527%, after hitting a high since October 2018 at 0.555%. The French OAT rate of the same maturity gained 4.4 points to 0.980% after topping 1% for the first time in February 2018.

PETROLEUM

The volatile oil market shows a downward trend at the close of trading in Europe, penalized by discussions between the United States and its allies about a coordinated response with a view to freeing its strategic reserves. According to Fatih Birol, director of the International Energy Agency (IEA), the member states of this organization have agreed to radically reduce their dependence on Russian hydrocarbons.

The British ambassador in Washington has also declared that the United States will deliver more liquefied natural gas (LNG) to Europe through the United Kingdom.

The barrel of Brent fell 1.64% to 119.61 dollars and that of American light crude oil (WTI) 1.93% to 112.75 dollars.

TO FOLLOW ON FRIDAY:

THE MARKET SITUATION

THE FENCE IN

EUROPE

Indices Last Var. Where. % THE LAST YEAR

Points

Eurofirst 300 1,774.38 -1.55 -0.09% -6.13%

Eurostoxx 50 3,863.39 -5.83 -0.15% -10.12%

CAC 40 6555.77 -25.66 -0.39% -8.35%

Dax 30 14273.79 -9.86 -0.07% -10.14%

FTSE7 467.38 +6.75 + 0.09% + 1.12%

SMI 12 131.45 +31.95 + 0.26% -5.78%

The values ​​to follow in Paris

and in Europe: [WATCH/LFR]

THE TREND ON THE WALL

STREET

Indices Last Var. Where. % THE LAST YEAR

Points

Dow Jones 34573.73 +215.23 +0.63% -4.86%

S&P-500 4,499.41 +43.17 +0.97% -5.60%

Nasdaq 14101.83 +179.23 +1.29% -9.86%

Nasdaq 100 14664.02 +216.47 +1.50% -10.15%

Minutes of the meeting in

Wall Street: [.NFR]

“The next day” – Le point sur

the next session on wall

Street [DAY/US]

CHANGES

Standby Price Var.% YTD

Euro/Dlr 1.0985 1.1004 -0.17% -3.37%

Dlr/Yen 122.37 121.15 +1.01% +6.35%

Euro/Yen 134.44 133.30 +0.86% +3.17%

Dlr/CHF 0.9316 0.9305 +0.12% +2.13%

Euro/CHF 1.0237 1.0238 -0.01% -1.27%

Stg/Dlr 1.3179 1.3203 -0.18% -2.60%

Index $ 98.8320 98.6220 + 0.21% + 2.76%

OR

Var. %THE LAST YEAR

Or Spot 1961.70 1943.38 +0.94% +29.31%

QUALIFY

Last Var. Spread /B

and

(points)

Future Bond 159.08 -0.72

fret 10 to 0.53 +0.00

fret 2 to -0.20 -0.00

TAO at 10 years 0.98 +0.00 +45.10

Treasury 10 years 2.35 +0.03

Treasury 2 years 2.12 +0.01

PETROLEUM

Previous price Var. Var.% YTD

US Light Crude 112.45 114.93 -2.48 -2.16% +83.71%

Brent 119.46 121.60 -2.14 -1.76% +80.92%

(Some data may show a slight change)

(Report Claude Chendjou, edited by Jean-Michel Bélot)

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