The Paris Stock Exchange is moving to one-month lows, while Wall Street is feverish at opening. Investors are wondering about the impact of monetary tightening by the Fed on sectors sensitive to changes in interest rates. Geopolitical tensions around Ukraine add to the ambient nervousness.
The start of the earnings season is proving more complicated than expected after the mixed performance of American banks, especially since Netflix has warned of the risk of a slowdown in its subscriptions. Morgan Stanley, Barclays, Evercore ISI and Credit Suisse downgraded the action of the streaming giant, which fell 21% in New York. Netflix is the first of the FAANG (Facebook, Apple, Amazon, Netflix, Google) to have published its fourth quarter accounts. ” With tech results still to come in January, it promises a bumpy ride. wrote Thursday Chris Beauchamp, chief market analyst at IG.
Shortly after 3:30 p.m., the Bedroom 40 fell 1.96% to 7,053.31 points in a business volume of 2.45 billion euros. In New York, the Dow Jones yields 0.15% and the Nasdaq Composite 1%, now dropping nearly 14% from its mid-November high.
Not much to hold the Fed back
The US Federal Reserve has beefed up its rhetoric in the face of soaring inflation, which in December reached levels not seen since 1982, under the presidency of Ronald Reagan. ” There’s a lot of speculation: four, five, six rate hikes this year, a 50 basis point hike in March, all of which fueled underlying market anxiety sums up Craig Erlam, senior market analyst at Oanda.
” We expect the Fed to make it clear at next week’s FOMC that it intends to raise interest rates in March. With the Omicron wave having passed its national peak, there is little that can hold the Fed back, especially if the next few weeks show another acceleration in wage growth. warns Paul Ashworth, chief economist for North America at Capital Economics.
Dongfeng lightens up in Stellantis
Stellantis down 3.8%. The Chinese Dongfeng Motor sold 1.2% of the capital of the French group at a price of 18.30 euros per share. The other players in the sector are also down. Renault loses 2.1%, Michelin 2.4%, Faurecia 3.7% and Valeo 2.9%.
ArcelorMittal loose 4.8% under the effect of profit taking like the whole sector. The Stoxx 600 for basic resources posted the best performance with a gain of 7.7 since the start of the year, ahead of oil and gas (+7.3%). TotalEnergies fell 2.4% in the wake of the fall in crude oil prices after the surprise rise in oil stocks in the United States. TechnipFMC loose 5.3%.
Airbus plaice of 2.4%. The aircraft manufacturer announced the cancellation of the contract for an order of 50 A321neo by Qatar Airways, a new step in the dispute between it and the airline over another model, the A350.