The rise in oil prices which raises questions about the persistence of inflation, supply difficulties and a potential payment default from the United States caused the stock markets to pull back on Wednesday.
In the aftermath of a tonic and technical rebound, the European indices were thus reversing: Paris and Frankfurt relapsed by more than 2%.
At 9:20 a.m. GMT, the flagship index of the Paris Stock Exchange, the CAC 40, dropped 2.12% to 6,436.64 points and its counterpart on the Frankfurt Stock Exchange, the DAX, lost 2.14% to 14,869.38 points .
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After a jump at the opening of Asian markets, inspired by that of the Western stock markets the day before, Tokyo finally lost 1.05% and Hong Kong 0.6%. The Shanghai Stock Exchange is on vacation this week due to a national holiday in China. The negative trend was also shaping up on Wall Street, where futures contracts on major US indices were sinking deep into the red.
"
The fact that momentum has run out of steam so quickly could also be explained by the rise in US bond yields, but it suggests that US stocks will struggle to maintain their gains before Friday's wage data
," says Jeffrey Halley, analyst at Oanda. In the sovereign debt market, US long-dated yields have steadily strengthened in recent sessions: the 10-year rate climbed to 1.56%, its highest since June. Investors expect the US Federal Reserve to announce at the beginning of November the launch of the gradual reduction in its monetary support and that a key rate hike may follow next year.
After more than a year of upward trend, the stock markets have been hampered in recent months by several obstacles including difficulties in global production chains and logistics as well as soaring energy prices caused by strong demand linked to recovery.
While monetary institutions repeat that the surge in prices will be temporary, "
the big question is the duration of the temporary inflation side
," said Jean-François Robin, head of research in a note from Natixis CIB.
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Several central bankers are expected to speak on Wednesday, including Atlanta Fed Chairman Raphael Bostic.
The monthly ADP private sector job creation survey for September in the United States will be in the spotlight ahead of the much-anticipated jobs report on Friday, which, if robust enough could prompt the Fed to act more quickly in the normalization of its monetary policy.
In the meantime, US President Joe Biden is struggling to get Congress to raise the debt ceiling and its major investment plans under the weight of political divisions.
