Traders work in the IG Index trading room
The main European stock markets are on a hesitant note on Tuesday after the mini rally the day before while optimism about a resolution to the conflict between Washington and Tehran diminishes following American strikes on southern Iran.
In Paris, the CAC 40 lost 0.38% to 8,227.37 points around 07:10 GMT, after a gain of 1.76% on Monday. In London, the FTSE 100, closed on Monday due to a public holiday, advanced by 0.67%, catching up with the good trend of the places opened the day before. In Frankfurt, the Dax fell by 0.12%.
The EuroStoxx 50 index fell by 0.16% and the FTSEurofirst 300 by 0.14%. The Stoxx 600 is nibbling 0.02%, after coming close to a record on Monday, which would have allowed it to return to its level before the launch of the Israeli-American strikes against Iran. The pan-European index is supported mainly by basic resources and the defensive sectors of “utilities” and real estate, while energy weighs.
Futures contracts on Wall Street predict an increase of 0.56% for the Dow Jones, 0.56% also for the Standard & Poor’s 500 and 0.79% for the Nasdaq for the resumption of quotations in the United States after a public holiday Monday.
On the geopolitical level, the US military said it had carried out defensive strikes on southern Iran, targeting “missile launch sites and Iranian ships attempting to lay mines”, while expressing its desire to show “restraint” as part of the truce announced ago “nearly seven weeks.
Even if a peace agreement between the two camps does not seem to be necessarily excluded, new attacks are not excluded either, which encourages investors to be cautious and sends Brent prices up again.
Aside from the geopolitical context, today’s session is “relatively calm regarding economic indicators and business news,†the American consumer confidence index, measured by the Conference Board, being the only major statistic expected in the United States.
On the bond market, sovereign yields in the euro zone are tightening slightly while Isabel Schnabel, member of the ECB board, declared that the Frankfurt institution would have to raise its rates in June even in the event of a peace agreement in Iran. François Villeroy de Galhau, the governor of the Banque de France (BdF) said, for his part, that the ECB would not hesitate to act to bring down inflation.
In terms of values, Kingfisher jumped 5.7%, the European DIY group, operating in France under the Castorama and Brico Dépôt brands, having maintained its annual profit target.
Ferrari falls 7% after the presentation Monday evening of its first fully electric car.
Air France-KLM (+2.15%) benefits from Morgan Stanley’s recommendation increase to “overweight”.
(Edited by Claude Chendjou)
