EUROPEAN SCHOLARSHIPS END DOWN, EXCEPT FOOTSIE
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by Laetitia Volga
PARIS (Reuters) – With the exception of the London Footsie, European stock markets ended in the red on Monday, as growing fears over Brexit and resurgent tension between the United States and China sapped investor appetite for risk .
In Paris, the CAC 40 finished down 0.64% to 5,573.38 points. Britain’s Footsie gained 0.08%, supported by the sharp drop in the pound sterling, and the German Dax was down 0.21%.
The EuroStoxx 50 index lost 0.26%, the FTSEurofirst 300 fell 0.24% and the Stoxx 600 0.3%.
The difficulties for British and European negotiators to reach a consensus on a post-Brexit trade agreement were the main factor in the market depression on Monday.
“The market is getting a little anxious [alors que la période de transition s’achève le 31 décembre]. There has been some technical progress behind the scenes but there is no political agreement yet, ”said Stefan Koopman, senior economist at Rabobank.
Investment bank JPMorgan believes a deal is likely but the risk of a no-deal divorce has risen from 20% to over 30%.
Investors have also been undermined by the return of disputes between Beijing and Washington. Several sources told Reuters that the United States was preparing to sanction several Chinese officials over their alleged role in excluding elected opposition officials in Hong Kong.
VALUES
Among the strongest sector decreases were the banking compartment which lost 2.37%, that of distribution (-1.46%) and that of the automobile (-1.01%).
Crédit Agricole (-2.90%), Societe Generale (-2.73%) and BNP Paribas (-2.70%) finished at the back of the Parisian CAC.
A WALL STREET
At the close of markets in Europe, Wall Street hesitating on the direction to take: the Dow Jones lost 0.45%, the S&P 500 0.14% while the Nasdaq Composite gained 0.46%, driven by technology stocks.
Against the tide of its sector, Intel (-4.30%) showed the largest drop in the Dow Jones in reaction to information from Bloomberg according to which Apple (+ 1.57%) plans to launch several chips in 2021 for Mac which will perform better than the fastest Intel chips.
After the disappointment over job creation in November and the reintroduction of restrictive measures in California, the most populous US state, expectations for a stimulus package from Congress and new support from the Federal Reserve are growing. stronger.
CHANGES / RATES
The pound loses 0.67% against the dollar after dropping as much as 1.6% in session as traders increasingly fear Britain and the European Union could not agree on a post-Brexit trade deal within the allotted time.
These worries raised the probability of a Bank of England rate cut by February to zero to 30% from 15% two weeks ago (from + 0.1% currently), according to data from Refinitiv.
The dollar reduced its gains against a basket of benchmark currencies which allowed the euro to rise to 1.2133.
The decline in safe-haven securities is benefiting government bonds: the yield on ten-year Treasuries fell four basis points to 0.9294% and that of the ten-year German Bund ended at -0.585%, a low of one week.
OIL
The oil market is on the decline due to the worsening of relations between the United States and China and the continued rise in coronavirus cases, which has required new measures to be put in place, especially in the state from California.
Brent yields 0.45% to 49.03 dollars a barrel and US light crude 0.54% to 46.01 dollars.
(edited by Jean-Michel Bélot)
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