2023-06-13 17:39:30
After a slack at the end of the morning, the indices started to rise once more. Frankfurt rose by 0.83%, Paris by 0.56% and London by 0.32%. In Zurich, the SMI grabbed 0.23%.
Global stock markets continued to rise on Tuesday, following the publication of inflation figures in the United States fell, in line with analysts’ expectations, thus confirming their hopes that the American central bank will pause the hike in its rates.
On Wall Street, following closing Monday at its highest level in thirteen months, the S&P 500 is on the same dynamic Tuesday. Around 3:50 p.m. GMT, it rose 0.61%, while the Dow Jones gained 0.37% and the Nasdaq 0.61%.
Inflation slowed sharply in May in the United States, to its lowest level in more than two years. Good news for the US central bank (Fed), which begins a meeting on Tuesday and may not raise its rates.
Consumer prices increased by 4.0% over one year, once morest +4.9% in April. This slowdown is in line with analysts’ expectations.
The Fed has been trying for more than a year to stop soaring prices. To do this, it has a very effective but delayed tool: the rate hike, which it has used ten times since March 2022, taking its main key rate from just above 0% to more than 5%.
The inflation report “should reinforce the + skip the turn + scenario for the Fed, that is to say no change tomorrow and leave the door open for a possible rise in July or later”, estimates Christophe Boucher, Chief Investment Officer of ABN AMRO IS.
For several stock market sessions, the American indices have experienced renewed optimism. “It seems that investors have returned to the basic scenario of a + soft landing +” for the economy, with inflation slowing sufficiently and activity bending without breaking, describe analysts at Muzinich & Co.
For Valérie Rizk, economist of Hugau Gestion, “since the recession is not here” in the United States, the values whose activity is linked to economic cycles “are regaining strength”, also supported by the good results of ‘first quarter companies released in April and May.
In Europe, the indices started to rise once more, following a slack at the end of the morning. Frankfurt gained 0.83%, Paris 0.56% and London 0.32%. In Zurich, the SMI gained 0.23%.
On the bond market, government bond rates rose in Europe and the United States: on 10-year maturities, the US government rate stood at 3.79%, once morest 3.74% the the day before, and that of Germany went from 2.38% to 2.42%.
Oracle favorable
Software giant Oracle gained 1.83% following announcing better-than-expected fourth quarter results, with revenue of $13.84 billion.
The graphics card specialist Nvidia, very driven by the demand generated by the development of artificial intelligence, was once once more hovering around the 1,000 billion dollar valuation mark on the stock market. Its title rose by 3.21%.
Rise in oil prices
Oil prices are rising, with investors welcoming the Chinese central bank’s decision to lower its short rate in order to revive the economy, which suggests a recovery in demand for raw materials.
Around 3:35 p.m. GMT, a barrel of Brent from the North Sea, for delivery in August, rose by 3.03%, to 74.02 dollars. Its American equivalent, a barrel of West Texas Intermediate (WTI) for July delivery, rose 3.04% to 69.16 dollars.
This trend also benefited mining companies in London, where Glencore gained 5.28%, Rio Tinto 2.66% and BHP 2.45%. United States Steel gained 4.84% and Cleveland Cliffs 2.90%.
The euro gained 0.29% once morest the dollar, to 1.0788 dollar for one euro.
Bitcoin fell 0.30% to $25,820.
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