European markets retreated slightly as the start of the US earnings season approached. The CAC 40 index lost 0.34% to 6,548.11 points while the EuroStoxx50 lost 0.43% to 4,055.06 points. The US stock markets were doing better with a Dow Jones in equilibrium around 5:30 pm.
Market sentiment is dominated by lingering concerns about inflation. Wholesale prices in Germany thus jumped 13.2% in September on an annual basis, its largest increase since 1974.
In addition, the ZEW index of sentiment among German investors on the economic outlook was disappointing. It fell for the fifth straight month to 22.3 in October, compared with a consensus of 24 and 26.5 in September. According to the Economic Institute, German investors are more pessimistic about the economic outlook because they are worried about bottlenecks.
Investors have all the more reason to limit their risk taking as the earnings season will begin tomorrow afternoon in the United States, with JPMorgan.
In Paris, Societe Generale announced 3,700 job cuts as part of the merger of its two retail banks Crédit du Nord and Societe Generale. It fell, as did the other CAC 40 banks, while 10-year yields stabilized.
On the other hand, the energy sector benefited from the investment plan of 30 billion euros over five years unveiled by Emmanuel Macron. McPhy jumped by more than 16%, hydrogen being one of the main axes of this plan, and EDF has taken nearly 3%.
source: AOF
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