London fell by 0.81%, while Paris rose by 0.12% and Frankfurt fell by 0.33%. In Zurich, the SMI increased by 0.33%.
Global stock markets lacked positive momentum on Tuesday, on the eve of the start of the highly anticipated monetary policy meeting of the US Federal Reserve (Fed).
Wall Street is moving in the red: around 4:50 p.m. GMT, the Dow Jones lost 0.46%, the broader S&P 500 index 0.31% and the Nasdaq 0.30%.
“The markets are in a waiting position, not having much to eat before the Fed meeting” on Tuesday and Wednesday, Jeanne Asseraf-Bitton, director of research and research, explains to AFP. strategy at BFT IM.
The consensus of analysts expects a drop of 0.25 points in the institution’s key rates.
But several data demonstrating the persistence of inflation and the resilience of growth in the United States encourage investors to be cautious.
Latest to date: retail sales came out better than expected in November, up 0.7% over one month against 0.5% anticipated by the consensus of analysts, according to figures published Tuesday.
“The new macroeconomic forecasts” of the institution “will also be particularly scrutinized,” according to Jeanne Asseraf-Bitton.
The comments of Jerome Powell, the president of the Fed, will also be monitored before Donald Trump comes to power in January, synonymous with uncertainty for the economy.
In this context, the yield on 10-year US government bonds rose to 4.38% around 4:50 p.m. GMT, compared to 4.40% the day before.
The London FTSE 100 stock index fell by 0.81%, after the publication on Tuesday of British salary and employment indicators which “exceeded expectations”, observes Patrick Munnelly, analyst at Tickmill Group.
This shows that the British economy remains strong and may need less rate cuts than expected — the British Central Bank meets on Thursday to decide on further monetary policy.
“Disinflation seems more complicated than expected in the United Kingdom, so the markets are reducing their expectations of rate cuts,” explains Jeanne Asseraf-Bitton.
In this context, the British ten-year interest rate rose around 4:50 p.m. GMT to 4.52%, compared to 4.44% the day before.
Elsewhere in Europe the CAC 40 gained 0.12%, Frankfurt lost 0.33%. In Zurich, the SMI gained 0.33%.
Eurozone stock markets are having to deal with the “collapse” of the French and German governments, observes John Plassard, investment specialist for Mirabaud.
The Banque de France on Monday lowered its French growth forecast for 2025, now forecasting GDP growth of 0.9% in 2025, compared to 1.2% previously.
In Germany, Olaf Scholz lost MPs’ vote of confidence on Monday, leading Europe’s largest economy into legislative elections on February 23.
The morale of German entrepreneurs fell in November, to the lowest since May 2020, according to the Ifo Institute on Tuesday.
The Canadian dollar at its lowest
The Canadian dollar fell after the resignation of the country’s Deputy Prime Minister on Monday, in open conflict over the direction of budgetary policy in the face of a possible strengthening of customs taxes towards the United States.
Around 4:50 p.m. GMT, the Canadian currency fell 0.54% against the greenback, to 1.4320 Canadian dollars, shortly after falling to its lowest since April 2020, at 1.4291 Canadian dollars.
The American dollar remained stable (+0.11%) against the euro, at 1.0500 dollars per euro.
Oil in decline
Oil prices were falling due to a sluggish recovery in the Chinese economy: a barrel of WTI depreciated by 1.61% to $69.57 and that of Brent from the North Sea lost 1.44%. at $72.84.
Bitcoin continued its race for records, rising to $108,315 in the afternoon. It was trading around 4:50 p.m. GMT at $106,906.
Nucera sees green
The specialist in electrolysis to produce green hydrogen, Thyssenkrupp Nucera (+15.64%), recorded a net profit of 11 million euros for the staggered financial year ended at the end of September, compared to 24 million for the year previous and despite an operational loss (Ebit) of 14 million euros, more than offset by high interest income.
