Wall Street in the red, febrile European stock markets

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8:28 p.m.
    , November 20, 2018

This is not yet a crash, but the worry is now very clear in the financial markets. After a black Monday, Wall Street has again plunged into the red Tuesday, and this, from its opening. Around 8 pm (CET), the Dow Jones, the main stock index in New York, was down 2.16% when the Nasdaq, it fell by 1.92%. The broad S & P 500 index lost 1.56%. Monday evening, these indices had already closed down sharply, the Dow ending at -1.56%, the Nasdaq -3.03% and the S & P 500 -1.66%.

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Tuesday at midday, the economic daily Wall Street Journal said that "the gains since the beginning of 2018 were erased". And the repercussions on other financial markets were almost instantaneous: Tuesday evening, all European stock markets without exception have ended in the red, starting with that of Paris and its CAC 40, which fell by 1.21%. The Paris index thus closed at its lowest level since February 2017.

Apple's fall on the stock market

This market crisis is all the more brutal as the New York indexes reached peaks at the end of September. Four reasons explain the current excitement of the scholarships:

  • The trade war between China and the United States
  • Brexit and uncertainties around draft agreement between London and Brussels
  • Fears surrounding the Italian budget, referred by the European Union
  • The fall of two US tech giants on the stock market: Apple and Nvidia, the world leader in processors and graphics cards

Apple acts as a symbol in this latent market crisis: the action of the manufacturer of iPhone has declined more than 20% in one month, weighed down by the negative sales forecast of its flagship smartphone model for the coming year. The other champions of Silicon Valley are also affected, Facebook action fell by 39.5% Tuesday at the opening of the stock market. Netflix also suffered the blow, since the share price fell by 35.5% in the morning.

In France, the arrest of Carlos Ghosn, the boss of Renault and Chairman of the Board of Directors of Nissan, also participated in this excitement of the CAC40.

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Oil is also plummeting

In parallel, another event has shaken the financial circles Tuesday, late afternoon: the price of a barrel of oil tumbled more than 7% in New York as in London, weakened by a general movement of risk aversion in a market already worrying strongly about a possible overabundance of black gold in the world. At around 8pm, Brent crude oil fell 7.01% to $ 62.11, while WTI barrel plunged 7.22% to $ 53.07, the two dropping to their lowest level. level since the end of 2017.

This slide is not, according to several analysts, linked to a particular event relating to oil. But it is in the wake of the fall of Wall Street indices, advance Phil Flynn, Price Futures Group. "The market is dominated by the fear of seeing global growth slow down considerably" and bring down the demand for energy, explains this expert to AFP.

Many investors having deserted the trading rooms in the approach of the Thanksgiving celebration on Thursday in the United States, the fall in prices is also, according to him, probably accentuated by algorithms triggering automatically when the courses reach certain levels.

(With AFP)