(Paris) Stock markets and the bond market were cautious on Wednesday after the publication of a weaker than expected slowdown in US inflation in April.

The New York Stock Exchange had gone down at the start of the session before returning to the green: the Dow Jones gained 0.53% and the S

Ditto in Europe where the indices almost canceled their daily progress shortly after 12:00 GMT, before starting again with a vengeance: Paris rose by 1.77%, Frankfurt by 1.57%, London by 1.06% and Milan by 2. .10%.

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 were expecting better (8.1%) and so-called core inflation, which excludes energy and food prices, accelerated further over one month, to 0.6% against 0.3% in March, especially as “there are signs that other sectors are contributing to the rise” in prices, according to Markets.com analyst Neil Wilson.

Food prices, for their part, experienced their strongest increase over one year since April 1981 (9.4%).

Inflation is “rather at a plateau than a peak, which means it will be high for longer,” says Neil Wilson.

In the bond market, US borrowing rates temporarily climbed nearly 10 basis points, before stabilizing again.

The 10-year rate was back slightly above 3% (up one basis point from Tuesday’s close). And the 2-year yield, which reflects expectations of key rate increases by the US central bank, rose to 2.686% against 2.608% the day before.

The main mission of central banks is to keep inflation under control. Faced with soaring prices, the US Federal Reserve (Fed) kicked off its rate hike cycle in March.

The latest inflation figures are likely to influence the scale of its next steps.

Several officials of the American central bank estimated on Tuesday that a rapid rate hike in the coming months was necessary in the face of inflation, even if it means, according to some, seeing unemployment temporarily rise a little.

European Central Bank (ECB) President Christine Lagarde is preparing the ground for an interest rate hike in July, the first since 2011.

Oil prices were surging, galvanized by concerns over Russian hydrocarbon supplies, slowing inflation in the United States and falling COVID-19 cases in China.

Around 10 a.m., a barrel of Brent from the North Sea for delivery in July took 4.31% to 106.85 dollars.

A barrel of US West Texas Intermediate (WTI) for June delivery rose 5.07% to $104.76.

The euro rose 0.29% against the greenback to $1.0561.

After a first half of the session in the red, bitcoin stabilized (0.40%) at 31,130 dollars.

Tobacco giant Philip Morris International (1.56%) announced an offer of nearly $16 billion (€15.2 billion) to buy Sweden’s Swedish Match, as part of a strategy to reduce the share of its activities in cigarettes.

The video game publisher reported total revenue of $1.82 billion for this quarter, up 35%. The stock rose 9.55% despite net orders, the most watched indicator in the video game industry, slightly below analysts’ expectations.

https://www.lapresse.ca/affaires/marches/2022-05-11/petite-frayeur-sur-les-marches-mondiaux-avec-l-inflation-americaine-avant-une-reprise.php

LEAVE A REPLY

Please enter your comment!
Please enter your name here