When we talk a little less about war in Ukraine, or even the presidential elections in France, it is the turn of US interest rates to worry the stock market. And not just a little… The Cac 40 fell more than 3% before raising the bar a little but still ended with a strong fall of 2.21%, to 6,498.83 points, in a volume traded quite supplied with €4.5 billion. Since the beginning of the year, the index has again lost more than 9%.
The market is being dragged lower by fears that the inflationary rebound will continue, which would force the US Federal Reserve to accelerate the recovery of its monetary policy. A few hours after the publication of the minutes of the last meeting of the FOMCthe statements of some senior officials of the institution alerted the operators.
After Brainard, Harker
This Wednesday, Patrick Harker estimated that inflation is too high. the president of the fed Philly fears inflation expectations are getting out of control anchorage “, informs the Wall Street Journal, that is, that the rise in prices does not get out of control. join the governor Lael Brainardwho said on Tuesday that the “ most important task is the fight against inflation, adding that the central bank will also have to face the rapid reduction of its balance sheet by almost 9,000 million dollars from May to move its policy towards “ a more neutral stance ” At the end of the year.
He also spoke in favor of a half-point increase in the fed funds rate next month, which in itself is not much of a surprise, though ” Ms. Brainard is usually one of the more ‘tame’ members of the FOMC, says Jeffrey Halley, market analyst at Oanda. If it went over to the super hawks, the market would have to take that into account, and it did. the honey pot WHAT [assouplissement quantitatif] is about to be closed “, he adds. To United States, the yield on the 10-year bond now moves to almost 2.63%, compared to 2.4% on Monday night. On the index side, the dow jones yields 0.8%. the Nasdaq Composite fall, he, of more than 2.5%.
Many losers in the stock market
In France, the 10-year OAT yield crossed the 1.2% threshold on Wednesday for the first time since 2015, peaking at 1.2244%. The wage gap with the German Bund of the same maturity is at its highest level since the start of the health crisis in March 2020. The movement is fueled by the latest polls, which reflect a smaller gap in voting intentions between the outgoing President, immanuel macronand the candidate of the National Rally, Marina LePen. BNP Paribas, General Partnership and Agricultural Credit it still lost between 2.4% and 3.4%.
Industrialists are also among the casualties of the day. Saint Gobain lost 4.4%, schneider electric 5.1%, Stellantis 4.4% and Renault 3.8%. As did the few big tech and growth stocks in the rating, pressured by the prospect of a rapid rise in interest rates. teleacting fell 4.5%, capgemini 3.9% and Dassault Systems 4.1%.
New sanctions against Moscow
On the Ukraine front, new sanctions were expected from the West against the Russia. The United States thus announced late in the afternoon that the new list will include, for the first time, individual sanctions against the two daughters of the Russian president, Katerina Tikhonovna and Maria Poutina. ” We believe that many of Putin’s assets are hidden behind his family members, which is why we are targeting them. said a senior US administration official. The wife and daughter of Foreign Minister Sergei Lavrov are also targeted, as are former Russian President and Prime Minister Dmitry Medvedev and Prime Minister Mikhail Mishustin. Two of the country’s largest banks, Sberbank and Alfa Bank, will also be subject to isolation for the first time, except for energy purchases. Finally, it is now totally prohibited for an American to invest in Russia, whether resident or resident abroad.
Among the rare rises of the day, Suchon defense, he gained 0.7%. Carrefour rose 2.2%. Kepler Cheuvreux raised its price target from €21.21 to €23 ahead of its quarterly results, citing performance “ solid in Brazil and France. Barclays points to 22 euros, compared to 20.50 previously. the pharmaceutical laboratory Sanofi a 1.4% premium.