European stock markets ended lower on Tuesday and Wall Street was also moving in the red, penalized by mixed results from companies in Europe and a wait-and-see environment linked to the two-day meeting of the US Federal Reserve, while weights heavyweights in the United States must publish their financial accounts in the evening.
In Paris, the CAC 40 ended down -0.71% to 6,531.92 points. The British Footsie fell by -0.42% and the German Dax fell -0.64%.
The EuroStoxx 50 index lost -0.92%, the FTSEurofirst 300 -0.57% and the Stoxx 600 -0.54%.
The attention of investors is mainly focused on the meeting Tuesday and Wednesday of the Monetary Policy Committee (FOMC) of the Fed, after which the central bank could give indications on the high level of inflation and its program. asset repurchases.
In the meantime, the International Monetary Fund (IMF) on Tuesday confirmed its forecast for global economic growth of 6% for 2021, raising its estimates for the United States and the euro zone but revising downwards those for several countries in development, facing a resurgence of the COVID-19 epidemic. The forecast for France is 5.8% this year.
IN WALL STREET
At the time of the close in Europe, the Dow Jones was down 1.98%, the Standard & Poor’s 500 by 0.72% and the Nasdaq by 0.42% after all three finished the day before on all-time highs for a second. consecutive session.
Investors are therefore now cautious before the publication in the evening of the results of heavyweights of the rating such as Apple, Microsoft or Alphabet. Amazon will release on Thursday.
For Randy Frederick, head of the Schwab Center for Financial Research, the markets will be on a wait-and-see basis until the publication of some of these results, especially as expectations are high because the results compare to 2020, a full year. COVID-19 pandemic.
Tesla is down more than 3%, despite better-than-expected second-quarter results, as the U.S. automaker said component shortages remained a major cause for concern.
VALUES
In Europe, the session was driven mainly by a salvo of mixed results, although China’s regulatory backlash against several sectors, including education and technology, continued to heckle the markets.
On the Stoxx 600, only three sector indices escaped the slump with very small gains.
Among the companies that published Monday evening, the world number one in luxury LVMH reported an 84% jump in its second-quarter sales organically, to 14.7 billion euros, thanks to the Louis Vuitton and Dior brands . The title, very volatile during the session, however ended down 0.56%.
Dassault Systèmes (+ 1.32%) finished at the top of the CAC 40 after the upward revision of its growth forecasts for this year.
On the SBF 120, Lagardère (+ 8.12%) was driven by its results, while at the other end of the spectrum Worldline (-8.91%) posted the largest drop.
In London, Reckitt Benckiser, at the back of the FTSE, fell 8.43%, also signing one of the biggest pullbacks of the Stoxx 600, along with Randstad (-6.04%) in Amsterdam and Logitech (- 9.86%) in Zurich following the publication of their results.
In mergers and acquisitions, two sources familiar with the matter reported that the owners of Europcar Mobility Group were in advanced negotiations with Volkswagen with a view to the takeover of the first by the second. The French vehicle rental specialist finished with a gain of 3.72%, while the German manufacturer fell 2.13%.
RATE
Pending announcements from the Fed’s meeting, the ten-year Treasuries yield fell four basis points to 1.2344%, a sign of investor caution.
Its German equivalent, a benchmark on the European market, is virtually stable at -0.443%.
CHANGES
The dollar index fell 0.28% against a benchmark basket, while the euro rose above $ 1.18.
OIL
On the oil market, prices are hesitant with a barrel of Brent stable at 74.34 dollars, while that of US light crude fell to 71.63 dollars.
TO BE CONTINUED ON WEDNESDAY:
End of Federal Reserve FOMC meeting, monetary policy release at 8:00 p.m. and press conference at 8:30 p.m.