Global markets are concerned about growth

European stock markets were in the red on Monday due to tolerable economic performance, while the rest of the markets took a defensive stance ahead of the US central bank’s (Fed’s) monetary policy meeting.

Around 1030 GMT, Paris shed 1.37%, Frankfurt shed 0.63% and Milan shed 0.93%. The European benchmark Eurostoxx 50 gained 1.54%. In Switzerland, the flagship SMI fell 0.83%.

London is closed for a public holiday, as are Hong Kong and Shanghai, reducing volumes and exacerbating fluctuations.

European stock markets experienced a sudden and spontaneous drop a little earlier, shortly before 08:00 GMT. The Paris CAC 40 fell 3.4%, the Eurostoxx 50 fell 2.9%, and in Stockholm the OMX 30 even fell 8%, according to Bloomberg, which claims the operator in charge of the Swedish trading floor is looking into the move. .

The reason for these variations is unclear to some analysts, who even tweet about the “outbreak”.

For Andrea Tueni, analyst at Saxo Bank, the release of eurozone manufacturing growth at the lowest level since January 2021 in April (the S&P Global PMI Composite) is the only notable indicator for the markets on Monday.

The report “highlights supply tensions” due to lockdowns in China in particular, and a hazy demand outlook that shows “the manufacturing sector in the eurozone is going through a somewhat challenging period,” he told AFP.

Andrea Tueni adds that “these figures are consistent with data released in China”: manufacturing activity there fell in April to its lowest level since February 2020 due to restrictions in the country’s major cities.

Sanitary measures are not being eased, and on Saturday, Beijing authorities announced they were stepping up, making new tests mandatory for access to certain public places.

Trading in Tokyo fell by 0.11%, which was suspended ahead of the Fed meeting, before the close of the three-day “Golden Week” in Japan.

However, Monday morning’s move should be seen in the context of the high volatility that has ruled the markets for several weeks, with stocks reacting strongly to the slightest news regarding China, inflation, the geopolitical context and monetary policy.

On Friday, the New York Stock Exchange recorded serious losses. The Nasdaq fell notably over 4% – and over 13% in April – its worst drop since 2008, while the S&P 500 and Dow Jones experienced their worst month since March 2020. Their futures showed that all three indexes rose slightly. open.

Oil prices were affected by concerns about demand from China and the 6th package of sanctions prepared by the European Commission against Russia’s oil ecosystem.

Around 1025 GMT, a barrel of North Sea Brent crude for July delivery, which is the first day of trading as a benchmark contract, fell 2.59% to $104.37.

A barrel of US crude West Texas Intermediate (WTI) for June delivery lost 2.95% to $101.61.

Investors also have in mind the Fed’s monetary policy meeting on Tuesday-Wednesday.

After raising its key rates by 0.25 percentage points in March, the Fed will ratify this time, if not surprised, a half-percentage increase, and should also mark the beginning of its balance sheet cut to try to fight inflation. at the highest level in 40 years in the United States.

Cars and equipment fined

Industries dependent on economic growth fell on Monday, such as the automotive industry, where Stellantis lost 2.14%, Renault 1.38% and BMW 1.08%.

The tech sector declined amid higher borrowing rates. STMicroelectronics brought in 3.22%, Dassault Systèmes 2.19% and Infineon 2.46%.

On the side of the euro and bitcoin

The euro shed 0.21% to $1.0523, a historic low.

Bitcoin added 1.23% to $38,790.

This article has been automatically published. Sources: ats/awp/afp

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