Wall Street is facing its worst session since June, Cac 40 is still there, Morning session.
The alarm clock still looks grim on the Paris Stock Exchange, which should struggle to recover from its nearly 2% fall the day before. Half an hour before the first exchange, the Cac 40 futures contract shows a decrease of about 0.5% at the opening.
Blame it on Wall Street above all else, as the major indexes dropped for the second day in a row. The Dow Jones lost 1.91%, the S&P 500 lost 2.14% and the Nasdaq Composite 2.55%. This is their worst performance since June. Worryingly ahead of the Jackson Hole conference, many market analysts agree that Fed President Jerome Powell will be more difficult than what happened in July’s monetary policy. The financial situation allows. Although inflation is over 8.5% per year, the labor market is still strong, as it was in the last season of the company’s results. The trend of a 75 basis point hike in the prime rates in September is also growing. According to a tool developed by CME based on futures Fed-money, the probability is estimated at 58.5%, compared to only 47.5% on Monday morning. The yield on the 10-year bond rose above 3% yesterday (3.007% this morning) for the first time in a month.
Another negative of this period should be sought in Europe, with the fear of economic collapse that seems inevitable, while the threat of inflation has not been seen and the European Central Bank, too, should be very depressing. . Especially since electricity prices are constantly rising, especially for gas, which has returned to levels not seen since the first days of the invasion of Ukraine, increased by more than five since the beginning of the year across the Rhine. Russian gas giant Gazprom announced on Friday that gas it sends to Europe via the Nord Stream 1 oil pipeline will be interrupted for three days, from August 31 to September 2, for “maintenance” reasons. Germany, which accounts for more than 30% of euro zone GDP, is in the lead. The Dax also lost 2.3% on Monday, the worst performance of the day on the continent. ” Instead of raising prices more than necessary, Christine Lagarde should have asked Putin to restore power to Europe », judge this morning Ipek Ozkardeskaya, of Swissquote.
For Ed Moya, market analyst at Oanda, “ events that are built around global growth are collapsing, that is weighing on the risk right now, the US cannot continue to be attractive while the rest of the world is failing. »
The euro is worth less than one dollar
The market will be able to take part in the economy of the eurozone on Tuesday, with the publication, in the morning, of the PMI indicators of the manufacturing and non-manufacturing sectors in the preliminary data for August. Further damage is to be feared if we refer to consumer confidence, whose purchasing power is weighed down by high inflation.
A sign of the surrounding malaise, the euro remains weak, below the dollar mark of 1, its lowest level since December 2002. Oil, on the other hand, rose slightly this morning, up to 97.20 dollars a barrel of Brent. OPEC is ready to cut production to offset the recent drop in oil prices linked to economic fears, Saudi Energy Minister Prince Abdulaziz bin Salman has said.