World stock markets fall amid US consumer confidence concerns

World stock markets are undecided on Tuesday, digesting US consumer confidence, which fell more timidly than expected, against the backdrop of the expectation of a vote by the US Congress on the compromise to avoid a default on payment by the States. United.

On the Old Continent, Paris (-1.29%) and London (-1.38%) fell sharply, and Frankfurt dropped 0.27%. In Zurich, the SMI lost 1.33%.

On Wall Street, around 4:00 p.m. GMT, the Dow Jones index fell by 0.37%, while the Nasdaq advanced by 0.60% and the S&P 500 by 0.13%.

“Today we had a publication that moved the market, consumer confidence in the United States for the month of May is showing signs of weakening, which is compatible with expectations of a recession in the coming months. », emphasizes Sophie Chauvellier, manager of Dorval AM.

However, consumer confidence fell less than expected by analysts. In detail, the general index fell to 102.3 points, according to the Conference Board’s publication on Tuesday, but it was expected at 99.

“What the Conference Board notes is that part of household spending linked to the excess savings built up during the Covid-19 pandemic is in the process of deflating, we are witnessing a slowdown in economic momentum”, continues Sophie Chauvellier.

Investors also remain attentive to discussions in the United States Congress on the agreement reached on Sunday between President Joe Biden and Republican leader Kevin McCarthy to raise the debt ceiling of the United States in exchange for budget cuts.

If no compromise is voted, the country could find itself in default of payment as of June 5, according to the American Treasury. Mr McCarthy has scheduled a vote in the House of Representatives on Wednesday in plenary. It will then be the turn of the Senate, with a Democratic majority, to seize it.

If the track of “default on the American debt, which would be unheard of, seems unlikely, it remains closely watched as there is no certainty,” concludes Ms. Chauvellier.

Detente on the bond

On the bond market, sovereign debt interest rates eased. The yield on US 10-year debt was 3.70% from 3.80% at Monday’s close.

European government debt rates are also falling (2.34% for the German 10-year rate, against 2.43% at Monday’s close).

Nvidia in the spotlight

The processor giant Nvidia exceeded Tuesday at the opening of the New York Stock Exchange the bar of one trillion dollars in market capitalization, driven by the boom in artificial intelligence. Around 1:45 p.m. GMT, the title of the group from Santa Clara (California) gained 4.75%, after having taken more than 25% last week.

By reaching 404.86 dollars at the opening, the action pushed the American manufacturer – initially specialized in graphics cards for video games – into the very closed circle of the five groups (Apple, Microsoft, Amazon, Alphabet and Saudi Aramco) with over a trillion dollar valuation.

Rolls Royce sous pression

British engine maker Rolls Royce fell sharply on Tuesday following reports of criminal bribery charges in India over the sale of fighter jets to the country in 2003 and 2012. Rolls Royce ended down 3, 12% in London.

On the side of currencies and commodities

Oil prices fell around 3:55 p.m. GMT. The barrel of Brent from the North Sea yielded 4.32%, to 73.74 dollars, and the barrel of American WTI lost 4.22%, to 69.60 dollars.

Around 3:55 p.m. GMT, one euro was worth 1.0721 dollars on the currency market, a small increase of 0.12%.

Bitcoin was at equilibrium at $27,695.