Paris ended close to equilibrium (+0.09%), which did not prevent it from recording a new absolute record at 7,463.67 points and a new closing record. London takes 0.50%, Frankfurt 0.31% and Milan 0.38%.
After a brief burst of optimism, global stock markets were mixed on Wednesday, the latest inflation figures in the United States having left a taste of “not enough” to investors.
In Europe, Paris finished close to balance (+0.09%), which does not prevent it from recording a new absolute record at 7463.67 points and a new closing record. London took 0.50%, Frankfurt 0.31% and Milan 0.38%. In Zurich, the SMI lost 0.30%.
After opening higher, Wall Street indices slowed and briefly dipped into the red. Around 3:50 p.m. GMT, the Dow Jones rose by 0.16%, the S&P 500 by 0.10% while the Nasdaq yielded 0.10%.
Inflation in the United States slowed to 5% year on year in March, doing better than expected, and thus stands at its lowest level in almost two years, according to the CPI price index.
Over one month, inflation came out at +0.1%, against +0.2% forecast, and after +0.4% the previous month.
However, underlying inflation, excluding food and energy, remains tenacious year-on-year at 5.6%, against 5.5% the month before, still due to the increase in housing and transport prices. .
“There are encouraging signs…but with core inflation still elevated, there’s a good chance the Fed will continue its tightening with another final 25 basis point rate hike in the next quarter. its next monetary meeting”, scheduled for May 2 and 3, commented Paul Ashworth, economist for Capital Economics.
“There is growing evidence that inflation is moderating, however there is still a long way to go before central bankers consider changing course and cutting rates,” warns CMC analyst Michael Hewson. Markets.
On the bond market, interest rates on US bonds initially fell sharply before returning to a level close to the previous day. The yield on the 10-year debt was worth 3.41% around 3:45 p.m. GMT, against 3.43% at the close the previous day, and that of the two-year debt at 4.01% against 4.02%.
According to Michael Hewson, investors believe that the rate hike in May “may well be the last in the cycle of rate hikes, before possible cuts by the end of the year”.
The dollar was penalized by the prospect of a halt to Fed rate hikes and fell against the other major currencies. Compared to the euro, it lost 0.64% around 3:45 p.m. GMT, to 0.91 euro for one dollar.
Investors’ attention now turns to the minutes of the March meeting of the Fed’s monetary policy committee, which will be published at 6:00 p.m. GMT.
Volvo, engine in Stockholm
In Stockholm, Volvo shares soared 7.35% after the announcement of preliminary financial results for the first quarter well above analysts’ expectations.
SAS take-back at low cost
The Scandinavian airline SAS, in financial difficulty, is heading for a delisting on the stock exchange with the American fund Apollo aiming for a majority stake, the Danish daily Berlingske reported on Wednesday. SAS shares, already at a historic low, fell 25.71% on the Stockholm Stock Exchange on Wednesday, to a tiny value of 0.26 Swedish kronor (0.02 euro).
TIM under pressure
Vivendi has put pressure on the board of directors of Telecom Italia (TIM) by harshly criticizing its executive compensation policy in the run-up to a general meeting of shareholders which promises to be tense. Telecom Italia shares lost 0.77% in Milan.
On the side of oil and bitcoin
Oil prices benefited from an unexpected increase in weekly oil inventories in the United States. Around 3:45 p.m. GMT, a barrel of Brent from the North Sea for delivery in June gained 1.35% to 86.74 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in May, rose 1.41% to 82.68 dollars.
Bitcoin fell 0.74% to $29,960.