The European stock markets retreated in mid-session Tuesday after an opening generally up, under pressure in the face of new tension in the bond market before a speech by the boss of the US Central Bank Jerome Powell.
Around 12:45 p.m. (11:45 a.m. GMT), the Paris Stock Exchange lost 0.17%, Frankfurt 1.13%, London 0.31%, and Milan 0.96%.
Futures on Wall Street foreshadowed an opening down 0.22% on the Dow Jones, 1.55% on the Nasdaq and 0.64% on the S&P 500.
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In Asia, the Tokyo Stock Exchange remained closed on Tuesday due to a public holiday but Shanghai closed down 0.17% and Hong Kong was up 1.03%.
The subject of very particular attention by investors for several sessions, the bond market was tightening a bit: the German ten-year rate was approaching its highest since mid-2020 at -0.29% and the French rate was quoting - 0.05%, the highest since last June.
The US rate evolved to 1.37%, close to its peak since last February.
This rate has risen sharply in recent days, and then influenced European rates, due to inflationary fears in the United States.
The US Central Bank "
has gone to great lengths to lower expectations of a short-term interest rate hike, giving the impression that it will ignore spikes in inflation,
" said Michael Hewson, chief analyst for CMC Markets UK.
With a ten-year US rate of 1.4%, some fear that the Fed has become a little too jaded about the risks of rising prices
", and fear that it will later be forced to raise its interest rates with haste, adds the expert.
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The intervention of the president of the institution on Tuesday in front of senators, then the next day in front of elected representatives of the House of Representatives, is therefore eagerly awaited.
On the European side, the President of the ECB, Christine Lagarde, calmed things down on Monday by ensuring that the Frankfurt institution was following "
closely the development of long-term nominal bond yields
On the indicators side, the unemployment rate in the United Kingdom rose to 5.1% during the three months ended at the end of December against 5.0% at the end of November because of the virus.