2023-06-15 11:29:42
(Paris) Global stock markets moved in mixed order on Thursday, with Europe down following the European Central Bank’s rate hike and Wall Street up, the day following a break in rate hikes from the US Federal Reserve.
On Wall Street, the New York Stock Exchange was higher following a lower opening. Around 10 a.m. (Eastern time), the Dow Jones index gained 0.54%, the NASDAQ 0.10% and the broader S&P 500 index 0.36%.
In Europe, on the other hand, Paris lost 0.67%, Frankfurt 0.38% and Milan 0.50%. London meanwhile advanced by 0.17%.
On the Old Continent, as anticipated by the markets, the European Central Bank decided on an increase of 0.25 percentage point and “it is very likely that we will continue to increase our rates in July”, declared Christine Lagarde, President of the ECB following the monetary policy meeting.
The institution also noted, in its updated forecasts on Thursday, the price increases expected until 2025: inflation should reach 5.4% in 2023, once morest 5.3% forecast in March, then 3.0% in 2024 and 2.2% in 2025, not far from the 2% target ultimately.
“The ECB’s upward revision to core inflation forecasts underscores its concerns regarding price pressures,” said Charles Seville, chief economics officer at Fitch.
Fed status quo
On Wednesday, the US Federal Reserve (Fed) decided not to raise its key rates, a first since March 2022 and following ten consecutive increases.
However, almost all of its members are in favor of a further rise in rates to curb inflation, said Jerome Powell, president of the institution, during a press conference on Wednesday evening.
Fed rate forecasts from various members suggest “two additional rate hikes, which is a surprise” more restrictive than expected by investors, said Vincent Juvyns, strategist at JP Morgan AM.
Moreover, the American indices were also sensitive to the level of consumption, which once more rose slightly in the United States in May, exceeding market expectations.
In the wake of central bank decisions, European sovereign interest rates rose, with short rates in particular being more sensitive to monetary policy expectations. The yield on German two-year debt was worth 3.05%, down from 2.98% at Wednesday’s close.
Canadian communications giant BCE cuts 1,300 jobs
Canada’s largest communications company, BCE (-0.73% in Toronto), announced on Wednesday the cut of 1,300 positions and the closure or sale of nine radio stations as part of a major restructuring plan, due in particular to the decline in audiences.
Papermaker Stora Enso hit by war
The Finnish papermaker Stora Enso (-5.01% in Helsinki) announced Thursday the elimination of 1,150 jobs and the closure of four sites in Europe, partly because of the economic impact of the Russian invasion in Ukraine. The closures will take place between 2023 and 2024.
Commodities and Currencies
Natural gas prices were climbing, driven since early June by the drop in supplies from Norway, due to leaks and maintenance at many facilities.
Around 9:45 a.m. (Eastern time), the Dutch TTF, a benchmark European contract, gained 7.57% to 41.22 euros per megawatt hour (MWh), shortly following touching 49.95 euros per MWh, a highest price since early April.
Oil prices rebound Thursday. The barrel of Brent for delivery in August advanced by 1.18% to 74.07 dollars and that of American WTI, with maturity in July, by 1.20% to 69.09 dollars.
The euro gained 0.56% to 1.0891 dollar.
Bitcoin lost 0.46% to $25,044.
1686841630
#World #stock #markets #unimpressed #central #bank #decisions
