Setback in sight in Europe before Jerome Powell’s great oral

Setback in sight in Europe before Jerome Powell's great oral


BLOCK ON SIGHT IN EUROPE BEFORE THE GREAT ORAL BY JEROME POWELL

of Laetitia Volga

PARIS (Reuters) – Major European exchanges are expected to fall on Wednesday, as is Wall Street, on fears of economic growth and inflation hours after the highly anticipated intervention of Jerome Powell, chairman of the Federal Reserve (Fed), to the Congress in Washington.

The first indications available show a decrease of 1.24% for the CAC 40 in Paris, -1.13% for the Dax in Frankfurt, -0.87% for the FTSE in London and -1.21% for the EuroStoxx 50.

The broad European Stoxx 600 index recovered 1.32% on Monday after three consecutive weeks of decline due to concerns about inflation, rising interest rates by major central banks and the evolution of the ‘economy.

The impact of the war in Ukraine and tensions on commodity markets should weigh on French growth, estimates the Banque de France, which lowered its forecast for gross domestic product in 2022 and 2023.

In the main meeting of the session, Jerome Powell will speak from 13:30 GMT before the Senate Banking Committee, before a similar hearing in front of the House of Representatives on Thursday.

“You will likely have to face questions about how far the Fed is willing to go to control inflation, that is, how big the rate hike is, (…) and whether the Fed is willing to let unemployment rise sharply. to achieve this, ”Michael Hewson told CMC Markets.

A WALL STREET

Wall Street futures are signaling a drop of around 0.9% after the positive session of the New York Stock Exchange on Tuesday, supported by cheap buybacks on large-cap stocks and those in the energy sector. [.NFR]

The Dow Jones Index gained 2.15% to 30,530.25 points, the S & P-500 gained 2.45% to 3,764.84 points, and the Nasdaq Composite .IXIC advanced 2.51% to 11,069.30. points.

IN ASIA

Le Nikkei à la Bourse de Tokyo a effacé ses gains de début de séance pour se stabiliser à 26 234.47 points (-0.05%) alors que les inquiétudes persistantes concernant le risque de récession ont poussé les “futures” américains dans le red.

Fears related to central bank policies and the economic situation are also affecting Chinese equity markets, where the Shanghai SSE Composite index lost -0.31% and the CSI 300 -0.41%.

EXCHANGES / RATES

The greenback is up 0.25% against a basket of reference currencies, including the euro, down slightly to $ 1.0495,

On the bond market, US yields are down: the 10-year loses more than three basis points to 3.2693%.

OIL

The oil market is in decline as the US president is expected to beg for a temporary suspension of the federal gasoline tax of 18.4 cents per gallon on Wednesday, while increasing pressure on the industry giants that he holds partly responsible for the surge. of crude oil prices.

The White House invited executives from seven refineries and oil companies to a meeting Thursday to discuss ways to increase production capacity and lower energy prices.

Brent loses -2.94% to 111.28 dollars a barrel and US light crude (West Texas Intermediate, WTI) -3.26% to 105.95 dollars.

(Laetitia Volga, edited by)

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