EUROPEAN SCHOLARSHIPS DECREASE SIGNIFICANTLY AT MID-SESSION
by Patrick Vignal
PARIS (Reuters) – Wall Street is expected to be in the red on Friday and European stock markets pull back sharply mid-session in a climate of risk aversion fueled by doubts about the strength of the global economic recovery and fears for changes in the health situation.
NYSE index futures report an open down 0.6% for the Dow Jones, 0.3% for the S & P-500 and 0.2% for the Nasdaq, to strong technological component.
The trend could change with the publication, one hour before the opening, of retail sales figures in the United States in July.
In Paris, the CAC 40 lost 2.08% to 4,937.66 points around 10:30 GMT. In Frankfurt, the Dax lost 1.33% and in London, the FTSE fell by 2.01%.
The pan-European index FTSEurofirst 300 drops 1.49%, the EuroStoxx 50 of the euro zone 1.8% and the Stoxx 600 1.62%.
The confirmation of a record 12.1% contraction in the euro area economy in the second quarter had little effect on the trend in Europe.
The decision taken by the United Kingdom to establish a “fortnight” for all travelers from France and the Netherlands and poor Chinese economic indicators have however fueled fears about the pace of economic recovery.
France, where the evolution of the epidemic is worsening, said it regrets the choice of Great Britain and will adopt a similar measure in the name of the rule of reciprocity.
In China, retail sales fell year on year in July when they were expected to rise and industrial production also came out below expectations, underlining the fragility of the rebound in the world’s second-largest economy.
VALUES TO FOLLOW AT WALL STREET
The Nasdaq pullback could be limited by gains for Tesla after a recommendation hike by Morgan Stanley, which sees potential for its battery business.
VALUES IN EUROPE
The Stoxx index of the transport and leisure sector lost 3%, the largest sectoral decline in Europe, after the measures imposed by the British authorities from France and the Netherlands.
At individual values, the Franco-Dutch company Air France-KLM lost 4.86%, the biggest drop in the Parisian SBF 120 index.
Elsewhere in Europe, Ryanair, British Airways and EasyJet drop between 4% and 7%.
The tour operator TUI fell 5.54% and Getlink, the Channel Tunnel concessionaire, lost 3.18%.
Worldline (-3.08)% shows the biggest drop with a CAC 40 completely in the red. Banks are also struggling with declines close to 3% for BNP Paribas and Société Générale.
The resurgence of risk aversion pushed the yield on 10-year Treasuries down by almost two basis points, which fell back below 0.7% after reaching its highest level since June 24, at 0.727% the previous day. , in response to the relatively weak demand generated by a 30-year auction.
The ten-year German Bund yield was virtually stable at -0.413%.
The variations are limited on the foreign exchange market: the dollar progresses slightly against a benchmark basket and the euro loses a little ground, around 1.18 dollars.
The two benchmark crude contracts lost around 0.7%, penalized by fears for demand. A barrel of Brent trades at $ 44.69 and that of US light crude (West Texas Intermediate, WTI) at $ 42.
(edited by Marc Angrand)