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MARKET UPDATE-Investors struggle to decide between optimism and uncertainty

08/12/2020
Source : Reuters - Les actualités en français
Categories: Index/Markets

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* The Stoxx 600 index gained 0.2% but the CAC 40 in Paris lost 0.23%
    * Wall Street also in scattered order at mid-session
    * The brexit deadlock weighs on Europe; in the USA, the health situation
worried
    But vaccines continue to raise hope 

PARIS, Dec 8 (Reuters) - European stock markets ended in order
scattered Tuesday but above their lowest of the day, the news of the
second part of the session and the relatively good performance of Wall Street having them
allowed to regain ground even if fears of a failure of the discussions
on the post-Brexit period continue to weigh on the trend.
    In Paris, the CAC 40 fell at the close by 0.23% (12.71 points) to
5,560.67 points, after a low of 5,521.87. 
    In London, the FTSE 100 gained 0.05% and in Frankfurt, the Dax
grabbed 0.06%. The EuroStoxx 50 index fell 0.12% but the
FTSEurofirst 300 rose 0.23% and the Stoxx 600 rose 0.2%
while it lost 0.58% at mid-session.
    At the time of the close in Europe, Wall Street was also trading in the
disorder, the Dow Jones up 0.31% and the Standard & Poor's 500
by 0.14% while Nasdaq Composite lost 0.06%.
    U.S. investors remain concerned about health situation
in the United States, which requires several states including California and New York to
tighten restrictions, but find reason for hope in the
prospect of an upcoming green light from the Food and Drug Administration (FDA) to
Pfizer and BioNTech.
    In Europe, the favourable evolution of the American trend had more effect
than the high-profile launch of the vaccination campaign in the United Kingdom.
Markets remain concerned above all about the lack of progress in
trade negotiations between London and the European Union, although London at
renounced controversial provisions of his draft market law
inside.
    
SECURITIES 
    While a clear majority of European Sector Indices Stoxx
were in the red mid-session, only a minority ended the day in
negative territory, the most marked declines affecting that of tourism and
leisure (-1.00%) and distribution (-0.69%).
    Banks (-0.63%) suffered from lower yields
bondholders: in Paris, Crédit Agricole (-2.66%) and Société Générale
 (-1.53%) recorded the largest declines in the CAC 40.
    In contrast, media behaviour (+0.96%) shows the best
performance of the session, driven among other things by a gain of 5.05% of TF1
 after a favorable rating of JPMorgan.
    AstraZeneca gained 0.78% after the publication of new results
positive clinical trials of the COVID-19 vaccine candidate developed with
Oxford University. 
    
TODAY'S INDICATORS 
    In Europe, the ZEW Index of Investor Sentiment in Germany has
exceeded expectations, rising to 55.0 for December from 39.0 last month
while the Reuters consensus gave it to 45.5.
    The rebound in euro area gross domestic product (GDP) in the third
the quarter was also revised to 12.5% compared to the previous quarter,
against 12.6% in the previous estimate. Over one year, the GDP of the 19 is in
down 4.3%.
    
FOREIGN EXCHANGE
    The dollar, boosted by renewed risk aversion, continues its rebound
and appreciated by 0.17% against a basket of reference currencies,
moving a little further away from the two-and-a-half-year low hit on Friday.
    But the session is once again dominated by the fall of the pound
sterling, a consequence of persistent fears about the post-Brexit period: it gives way
0.13% against the dollar and 0.14% against the euro, after having
briefly reduced his losses in reaction to the announcement of London's renunciation
the controversial provisions of its Internal Market Act.
    
RATE
    Benchmark bond yields decline as appetite picks up
for risk and, in Europe, the approach to central bank decisions
European (ECB).
    That of the German ten-year Bund ended the day at -0.607%, down
nearly three basis points and the lowest since November 9. The session
European was marked among other things by the passage of the Portuguese ten years in
negative territory, a first.
    On the US market, the yield on ten-year Treasuries
fell nearly two points to 0.9129% after briefly falling below 0.9%.
    
PETROLEUM
    Like stocks, oil, trending lower for most of it
of the day due to fears that the health situation will weigh on the
demand, now moves in scattered order: Brent gains 0.1% to 48.74 dollars
the barrel after a low at 48.09 while US light crude
(West Texas Intermediate, WTI) fell 0.52% to $45.52.
TO BE FOLLOWED ON WEDNESDAY: 
    
THE SITUATION ON THE MARKETS:
    (Some data may lag slightly)
    
THE CLOSURE IN                                                          
 EUROPE                                                         
 Indices Last Var.       Var. % YTD                
                                Points                          
 Eurofirst 300 1522.83 +3.56 +0.23% -6.23%             
                                                                
Eurostoxx 50 3525.87 -4.21 -0.12% -5.86%             
                                                                
CAC 40 5560.67 -12.71 -0.23% -6.98%             
 Dax 30 13278.49 +7.49 +0.06% +0.22%             
 FTSE 6558.82 +3.43 +0.05% -13.04%            
 SMI 10394.10 +18.72 +0.18% -2.10%             
                                                                         
The values to follow in Paris and in                                     
 Europe:                                                       
                                                                         
THE TREND A                                                          
 WALL STREET                                                    
 Indices Last Var.       Var. % YTD                
                                Points                          
 Dow Jones 30163.19 +93.40 +0.31% +5.69%             
 S&P 500 3695.75 +3.79 +0.10% +14.39%            
 Nasdaq 12508.84 -11.11 -0.09% +39.41%            
 Nasdaq 100 12562.08 -34.39 -0.27% +43.84%            
                                                                         
Minutes of the session on Wall Street                                
 :                                                              
 "The Day Ahead" - Update on the next session                      
 on Wall Street                                                  
                                                                         
FOREIGN EXCHANGE                                                                
                     Course Watch Var.% YTD                
 Euro/Dlr 1.2110 1.2108 +0.02% +8.03%             
 Dlr/Yen 104.12 104.06 +0.06% -4.35%             
 Euro/Yen 126.10 125.99 +0.09% +3.40%             
 Dlr/CHF 0.8885 0.8906 -0.24% -8.19%             
 Euro/CHF 1.0762 1.0785 -0.21% -0.83%             
 Stg/Dlr 1.3364 1.3376 -0.09% +0.79%             
 Index $ 90.9430 90.7920 +0.17% -5.44%             
                                                                         
GOLD                                                                      
                     Course Watch Var. % YTD                
 Gold Spot 1868.94 1863.69 +0.28% +23.20%            
                                                                         
RATE                                                                   
                                Last Var.       Spread/Bund
                                                        (pts)
                                                                         
Future Bund 178.19 +0.34                         
                                                                
Bund 10 years -0.61 +0.01                         
                                                                
Bund 2 years -0.77 +0.01                         
                                                                
OAT 10 years -0.36 +0.00 +24.23             
                                                                
Treasury 10 years 0.91 -0.01                         
                                                                
Treasury 2 years 0.14 +0.00                         
                                                                
OIL                                                                
                     Previous course Var Var.% YTD
 US light crude 45.53 45.76 -0.23 -0.50% -25.62%
                                                                
Brent 48.77 48.79 -0.02 -0.04% -26.14%
                                                                        
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