(Paris) Markets extended their rebound on Wednesday before focusing on the consumer price index for April in the United States, which could change the pace of monetary tightening by the United States Federal Reserve.
The European indices accelerated their progression one hour before the publication of the leading indicator for the session: Paris rose by 1.91%, Frankfurt by 1.28% and London by 1.06% around 7:30 a.m. Milan gained 2 .04%.
For its part, Wall Street was preparing to open on the same momentum, with futures contracts for the three main American indices showing an increase of between 0.90% and 1.48%.
Economists expect lower inflation for April after a level not seen since the early 1980s the month before.
Some investors have caught themselves hoping for “the possibility of inflationary pressures capping in the near term, as bond yields have fallen sharply in recent days,” said Michael Hewson at CMC Markets.
The bond market continued to ease on Wednesday, with the 10-year US government bond rate falling to 2.93% from 2.99% the day before and over 3.15% at the start of the week. The decline remained very pronounced on Italian yields.
“Markets are anticipating a tightening of central bank policy, but until inflation stabilizes it will be impossible to know whether rates have peaked,” said SPDR’s research and strategy team. .
The US Consumer Price Index (CPI) for April due in the afternoon (8:30 a.m.) is likely to influence the strength of the reaction of the US central bank (Federal Reserve, Fed) which gave in March the kick-off of its rate hike cycle to combat rising prices.
Statements by central bankers, which have multiplied in recent days at the level of the Fed and the ECB, are fueling the debate on the extent of monetary tightening necessary for inflation to finally fade without damaging the economy or cause unemployment to rise.
While waiting to focus on the inflation indicator, investors were looking at the numerous earnings releases in Europe, such as Thyssenkrupp (10.7%) in Frankfurt, TUI (4%) and Compass (8%). ) in London which all benefited from optimistic forecasts for the current year.
Italian luxury house Salvatore Ferragamo posted a net profit of 14 million euros for the first quarter, despite a slowdown in sales in China. It announced the goal of doubling its revenue “in the medium term”. The title climbed more than 8% in Milan, while in Paris, the trio LVMH, Kering and Hermès advanced more than 3% around 7:10 a.m.
Bayer plunged 7.38% after an opinion from the United States Attorney General recommending that the Supreme Court not take up the glyphosate case. The group said it was “still convinced that there are good legal arguments for the Court to consider the case” of Edwin Hardeman, who accuses the herbicide RoundUp of Monsanto, acquired by the German agrochemical giant, to be responsible for his cancer.
Shares in Swiss oncology giant Roche tumbled more than 7% following a setback in a study for a new treatment for lung cancer.
Oil prices rebounded on Wednesday, after two sessions of declines, boosted by fears over tight crude supply, neutralizing concerns about demand for the time being.
Around 7 a.m., a barrel of Brent from the North Sea for delivery in July took 3.07% to 105.61 dollars.
A barrel of US West Texas Intermediate (WTI) for June delivery rose 3.52% to $103.28.
The euro rose 0.19% against the greenback to $1.0549.
After a first half of the session in the red, bitcoin recovered by 1.84% to 31,565 dollars.