Paris dropped 0.34%, London 0.23% and Frankfurt 0.34%. In Zurich, the SMI lost 0.13%.
Equity markets remained cautious on Tuesday, awaiting US inflation figures and the start of the corporate earnings season.
Europe closed in the red: Paris dropped 0.34%, London 0.23% and Frankfurt 0.34%. In Zurich, the SMI lost 0.13%.
The New York Stock Exchange was also on the reserve: around 5:10 pm GMT, the Dow Jones and the S&P 500 fell 0.17%, the Nasdaq lost 0.16%.
Michael Hewson, analyst at CMC Markets UK, sees a “bipolar” side of the markets overnight, with “up and down movements, but within a clearly defined range”.
“While investors want to believe in a scenario that would see the equity markets rise further”, any optimism is hampered by “the rise in prices and disruptions in the supply chain which could well have a negative impact on the margins of the businesses and cause a slowdown in consumption, ”he explains.
A new season of corporate earnings releases begins this week. US banks are the first expected, from Wednesday.
“It may be a bit early to see the impact of rising energy prices on companies’ accounts,” said Yohann Salleron, equity manager at Mandarine Gestion, but the outlook for companies for the coming months will be scrutinized.
“The risks concern the fourth quarter,” he continues, expecting “possible warnings on annual profits” announced before upstream of the publications of the income statements for the year 2021.
Especially since analysts’ expectations are still very high and not necessarily revised to take into account the surge in energy prices.
Inflation figures for Germany and the United States will also be published on Wednesday, before those for China expected on Thursday.
The air slows down
In London, the airline Easyjet ended down 3.49% to 625.40 pence, after indicating on Tuesday forecast a sharp loss in its annual result, to nearly 1.18 billion pounds.
The German airline Lufthansa repaid in advance 1.5 billion euros of public aid distributed in 2020 by the German state to avoid bankruptcy, after a recent capital raising of 2.2 billion euros. The title lost 2.25% to 5.81 euros.
Renewable energies sought
French President Emmanuel Macron unveiled an investment plan of 30 billion euros to develop industrial competitiveness and the technologies of the future.
Among the priorities displayed, the development of green hydrogen and small nuclear reactors. An announcement that pulled the values of the hydrogen and renewable energy sectors beyond the French market.
In Paris, the electricity giant EDF, also builder and operator of nuclear power plants, took 2.81% to 12.42 euros.
In London, the energy supplier SSE, one of the British energy companies most committed to renewables, finished up 1.32% to 1,575 pence.
In Frankfurt, the energy technology company Siemens Energy took 1.73% to 22.93 euros and in Vienna the Austrian electricity supplier Verbund, engaged in renewable energies, gained 3.14% to 91.90 euros.
In Copenhagen, the world’s largest manufacturer of Vestas wind turbines, jumped 5.22% to 235.80 Danish kroner.
Oil remains at a high level
Oil prices stabilized, the day after new highs in session.
In New York, the West Texas Intermediate (WTI) barrel futures contract for November delivery was stable (+ 0.06% to $ 80.57), while a barrel of North Sea Brent for delivery in December lost 0.43% to 83.30 dollars in London, around 17:10 GMT.
On the euro and bitcoin side
The euro lost 0.21% against the greenback at 1.1529 dollars, the lowest since July 2020.
Bitcoin was down 2.42% to $ 55,910, after rising more than 30% since the start of the month.