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France Media Agency
In the wake of the Asian markets, Europe extended its downturn at the opening: around 5:10 a.m., the Dax (-0.47%) fell back below 14,600 points, Paris fell by 0.22%, Milan 0.25% and London 0.13%.
Asia continued its slide: Tokyo lost 2.04%, Hong Kong 2% and Shanghai 1.3%.
“Risk appetite is hardly ideal when governments roll out new restriction measures in the face of third wave of COVID-19,” and “for now, the world is blocked by vaccine shortages », Observes Ipek Ozkardeskaya, analyst at Swissquote Bank.
“A delay in the resumption of activities also means an economic delay of at least a month and countries have difficulty finding fuel to reach the end of the tunnel” of the health crisis, she adds.
For Tangi Le Liboux, strategist at Aurel BGC, the markets, which anticipate a strong recovery are caught in a vice: “if the hoped-for strong recovery becomes reality, then investors could be faced with a change in tone from the Fed and inflationary pressures stronger than expected ”. “But if the recovery is disappointing, then corporate earnings growth may have to be revised down.”
The US ten-year rate fell to 1.61%, following comments deemed reassuring by the President of the US Central Bank Jerome Powell who again downplayed on Tuesday the risk of an inflation slippage and reiterated the need to continue to support the economy.
“There is apparently a correlation between the number of times Jerome Powell tells investors not to worry about inflation and the decrease in their anxiety,” says Mme Ozkardeskaya.
However, on the health front, concern was mounting in South America in the face of the explosion of contaminations in Brazil, which recorded a record number of 3,000 deaths in 24 hours.
After Germany, which will tighten the screw to limit the spread of the coronavirus during the Easter weekend, the Netherlands will extend until April 20 the restrictive measures in place to fight the COVID-19 pandemic.
This health reality raises fears of a watered-down economic rebound in Europe, already facing delays in vaccination.
To increase the supply of vaccines to the European Union, Brussels is preparing to tighten its control of vaccine exports if, for example, a laboratory delays scheduled deliveries.
EON raises its dividend
EON took 0.18% to 9.05 euros. The coronavirus pandemic has “left no trace” on the 2020 results of the energy company who announces that “from 2023, the dividend will climb each year by up to 5%”.
Carrefour is growing in Brazil
Carrefour advanced 0.44% to 14.82 euros, after the announcement of the acquisition of Grupo Big, third player in food distribution in Brazil, for an amount of 1.1 billion euros.
Crude prices recovered after hitting their lowest levels since early February on Tuesday.
Next at a discount
Next shed 1.04% to 7,594.00 pence. The National Statistics Office (ONS) said on Wednesday that clothing prices have endured a record drop over the past 12 months due to the pandemic and lockdowns, with customers reluctant to buy new outfits to stay at home. The accumulated stocks are “considerable”, says the ONS.
On the oil, euro and bitcoin side
Crude prices recovered on Wednesday after falling sharply on Tuesday, in the wake of last week.
A barrel of North Sea Brent for May delivery was up 1.94% to $ 62.03 from Monday’s close.
In New York, WTI’s US barrel for May, which is the first day of use as a benchmark contract, rose 2.06% to $ 58.94.
At the same time, the euro fell 0.19% against the greenback, to 1.1829 dollars.
Bitcoin rose 3.87% to around $ 56,560.
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