The extreme rise in gas prices, combined with oil, hit equity markets on Wednesday and raised the question of the extent of their impact on inflation and growth.
After a technical and tonic rally, the European indices fell clearly: around 11:40 GMT, Paris fell 2.13%, Milan 2.12% and Frankfurt 2.22% with a DAX index below the threshold 15,000 points, as Germany reported a surprise sharp drop in manufacturing orders in August. London lost 1.68%.
This negative trend, previously shared in Asia, was also emerging on Wall Street, where the futures contracts of the major US indices plunged deeply into the red (between -1.06% in the Dow Jones and -1.46% in the Nasdaq).
“The real big fear is the price of energy and supply,” which could erode companies’ margins, summarizes Alexandre Baradez, an analyst at IG France, during a market point.
Tension point, gas markets were racing, continental and British benchmarks breaking new records due to strong demand as winter approaches, especially in Asia, but also restricted supply and low stocks worldwide.
In the sovereign debt market, the acceleration of the US 10-year interest rate to 1.54% was driven by rising energy prices, supply problems and the prospect of a normalization of monetary policy .
“Investors are still suspicious of inflation, recently driven by rising oil and gas prices that has caused investors to fear stronger-than-expected inflation rises” and “a faster-inducing tightening of monetary policy of expected “, on behalf of central banks, explains Franklin Pichard, director of Kiplink Finance.
After more than a year on the rise, equity markets were also hampered by other risks, including those related to Chinese colossus Evergrande on the brink of bankruptcy and potential US default.
Following the opening of Wall Street, investors will take note of the ADP survey of US private sector employment in September and the weekly evolution of oil stocks, which is important in the current context.
The cost of energy weighs heavily on Saint-Gobain
Saint-Gobain’s construction and distribution materials group (-3.14% to 55.25 euros) has indicated that it will revise upwards its energy and raw material costs for 2021, when presenting its new financial targets for 2025.
Tesco raises its targets
British supermarket giant Tesco (+ 4.62% to 264.70 pence) announced a 68% increase in net profit for its lagging first half, thanks to sales that have remained high since the start of the health crisis. It also revised its ambitions upward, targeting an operating profit “between 2.5 and 2.6 billion pounds for the year.”
Eutelsat becomes the second shareholder of OneWeb
The European satellite operator Eutelsat (+ 1.20% to 12.21 euros in Paris) announced that it will invest an additional 165 million euros in OneWeb and its constellation aimed at providing high-speed internet, thus becoming the company’s second shareholder. .
On the side of oil, the euro and bitcoin
Oil prices fell after hitting new multi-year highs earlier today.
Around 10:35 a.m., the price of a barrel of North Sea Brent for December delivery fell 0.12% compared to the close of the previous day, reaching $ 82.47 in London.
In New York, a barrel of WTI for the month of November fell 0.24% to $ 78.74.
The euro fell 0.53% against the dollar, driven by strong long-term US yields, topping $ 1.1536.
Bitcoin fell (-0.17%) to $ 51,385 after crossing the $ 50,000 threshold for the first time in a month on Tuesday.