(New York) European markets confirmed their rebound on Wednesday thanks to a slight slowdown in inflation in the United States, but Wall Street fell, convinced that the rise in prices will continue.
In Europe, the indices closed sharply higher: the Paris Stock Exchange rose by 2.50%, Frankfurt by 2.17%, London by 1.44% and Milan by 2.84%.
In New York, the Dow Jones fell 1.02% and the broader index S
Since its peak at the end of November, the barometer of technology stocks has melted by almost 30%.
Inflation stood at 8.3% in April in the United States, compared to 8.5% in March, according to the consumer price index (CPI).
This first slowdown in eight months was enabled by lower gasoline prices, which had soared in March.
However, investors expected better (8.1%) and so-called core inflation, which excludes volatile energy and food prices, accelerated further over one month, to 0.6%. compared to 0.3% in March.
“There are two feelings: on the one hand the market thinks we’ve peaked in inflation, but on the other hand, in the short term, there are things that show that the rise in prices is escalating. is extended to services,” explains Alexandre Baradez, analyst at IG France.
“Inflation is not going away anytime soon and the Fed needs to deal with it,” said Adam Sarhan of 50 Park Investments.
In the bond market, US borrowing rates temporarily climbed, before easing significantly.
The 10-year rate rose to 3.07%, before slipping to 2.92%.
“The bond market is not sure which foot to dance on,” notes Alexandre Baradez. If the hypothesis of a peak in inflation prevails, “we would have a very strong downward effect, but, for the bond market, the Federal Reserve is not going to slow down” on its rate hikes , he adds.
“This persistent inflation will push the Fed to (raise rates) more aggressively,” said Will Compernolle of FHN Financial.
“It might even get some (members of the Fed) to argue for a 0.75 percentage point hike in June,” he said, a prospect that was dismissed by Fed Chairman Jerome Powell. last week.
German industrial conglomerate Thyssenkrupp jumped 11.31% after raising its operating profit and revenue forecast after a second-quarter gain in its lagged fiscal year attributed to higher prices and restructuring measures .
In tune with the rout of cryptocurrencies, the virtual currency exchange platform Coinbase tumbled (-26.44% to 53.72 dollars), after the publication, Tuesday after the stock market, of results below expectations.
The group saw the number of monthly users and transaction volumes fall compared to the fourth quarter.
The entire sector was caught up in the turmoil, from stock exchange Robinhood (-12.08%) to indexed ProShares Bitcoin Strategy ETF (-6.48%).
Meanwhile, bitcoin sank below $30,000, down 6.12% to $29,102.28.
Oil prices rebounded strongly, in a very volatile market after several sessions of losses, stimulated by concerns about the consequences of a possible embargo by the European Union on imports of Russian hydrocarbons.
A barrel of US West Texas Intermediate (WTI) for June delivery climbed 5.96% to $105.71, after dropping more than 3% the day before and slipping below $100.
That of Brent from the North Sea for July delivery, listed in London, rose 4.92% to 107.51 dollars.
The euro fell 0.15% against the greenback, to 1.0513 dollars.