(Paris) Investors continued to digest US inflation figures on Thursday, struggling to find a clear direction in a general context heavy and clouded by the risks of recession.

Down sharply by more than 2% for a good part of the session, the European indices have regained color in the latest trade. Paris (-1.01%), Frankfurt (-0.64%), Milan (-0.67%) and London (-1.56%) fell, but in lesser proportions than for the strong gains of the Eve.

Wall Street, which has changed course several times since opening, was retreating around noon: the Dow Jones was down 1.12%, the S

Dollar and government bonds, perceived as safe havens, were sought after.

On Wednesday, the CPI consumer price index was published in the United States, up 8.3% year on year in April, less than in March (8.5%) but more than expected by the analysts.

On Thursday, the PPI producer price index followed the same trend: down from March year on year (11% vs. 11.5%), but higher than expected.

This overheating is pushing central banks to tighten their monetary policy, which could have a more penalizing effect on economic growth.

“The market is becoming more and more concerned by the risks of recession”, also consequences of the war in Ukraine, or even confinements in China, according to Michael Hewson, of CMC Markets.

This climate pushed investors towards the bond market, leading to lower rates (yields move in the opposite direction to their price). The interest rate for the 10-year American fell to 2.83% around 3:55 p.m. GMT, far from the 3.20% reached at the start of the week.

In Europe, German, French and Italian sovereign yields for the same maturity also fell sharply.

A safe haven, the dollar climbed to a 20-year high against other major currencies.

The euro fell 1.15% against the greenback, to 1.0392 dollars, the lowest in 5 years.

The price of bitcoin, which sank as low as $25,424, fell back to $29,080 (2.41%) on Thursday. It has fallen 60% since its all-time high in November, as the entire cryptocurrency market suffered a similar slimming down.

Cryptocurrency-backed stocks were on a rollercoaster ride: Exchange Coinbase, which saw its stock plunge 26.4% on Wednesday to its lowest level since its IPO a year earlier, was recovering a bit ( 0.80%) after a sharply lower opening.

Brokerage app Robinhood, which recently offered a bitcoin-indexed fund, plunged 12% before regaining 3.68%.

The viral and highly volatile GameStop stock (8.80%), favored by online brokers, even climbed 30% during the session.

Oil prices rallied after a weak start to the session, while natural gas surged on news of supply disruptions from Russia.

Around 11:35 a.m., a barrel of Brent North Sea for July delivery took 0.42% to 107.96 dollars and US WTI for June delivery rose 0.83% to 106.59 dollars.

The benchmark for the European natural gas market, the Dutch TTF, took nearly 10%, evolving to 103 euros per megawatt hour (MWh) after touching 115.00 euros per MWh.

The Spanish telecoms group Telefonica (2.64%) confirmed its objectives for 2022 after making 706 million euros in profits in the first quarter. It escaped the slump in European indices, such as Deutsche Telecom (2.50%), or BT Group (0.96%).

The construction group Bouygues, which also has a telecom branch, fell by 0.96% after its results.

https://www.lapresse.ca/affaires/marches/2022-05-12/les-bourses-mondiales-hesitent-face-a-l-inflation.php

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