The chart of the German stock index DAX on the Frankfurt stock exchange
PARIS (Reuters) – Major European equity markets fell Monday for their first session of the final quarter of the year amid lingering recession fears, ahead of a series of manufacturing health indicators in Europe and the US.
In Paris, the CAC 40 lost 1.19% to 5,693.65 points around 07:35 GMT. In London the FTSE 100 lost 0.5% and in Frankfurt the Dax fell 1.07%.
The EuroStoxx 50 index was down 1.14%, the FTSEurofirst 300 by 0.74% and the Stoxx 600 by 1.03%.
At the beginning of the fourth quarter, the reasons for concern that weighed on the previous three months remain: the impact of the tightening of monetary policies of the main central banks on the economic pace and the impact of the war in Ukraine on inflationary pressures and the situation energy.
Investors will follow Monday the release of the PMI and ISM indices for the manufacturing sector in the euro zone and the US.
Other appointments of the week, the publication, on Thursday, of the report of the last monetary policy meeting of the European Central Bank and that, on Friday, of the monthly report on American employment.
In the foreign exchange market, the pound gained as much as 1.07% against the dollar, its highest in 10 days, after the UK government abandoned plans to abolish the top-tier tax revenue bracket.
“Clearly the pound has appreciated, but the announcements … are they enough? The 45% tax rate was only a fraction of the announced unfunded tax cuts. The British pound and gilt businesses are not out of the woods yet. and the government has a lot to do to regain its credibility, “said Jane Foley, an economist at Rabobank.
The British currency now gains 0.44% against the greenback.
On the stock exchange, Credit Suisse lost 8.93% in a context of uncertainty about the state of its liquidity and after the Swiss bank’s real estate fund postponed a capital increase, citing in particular a degraded market environment .
The European financial services sector (-8.93%) recorded the largest decline.
Air France-KLM fell 6.11% after lowering HSBC’s recommendation to “keep”.
Up TotalEnergies gains 1.37%, leading the CAC 40, supported by the oil price increase of more than 3%. OPEC + will discuss a production cut of more than one million barrels per day on Wednesday, according to several sources within the cartel on Sunday.
(Writing by Laetitia Volga, editing by Kate Enringer)