(New York) Stock markets benefited from a bargain hunt on Tuesday, having been battered in recent sessions, but with little conviction awaiting US inflation data on Wednesday.
In Europe, the Frankfurt Stock Exchange ended up sharply up 1.15%, as did Milan (1.04%), while the recovery was more moderate in Paris (0.51%) and London (0.37%). %). None of these places managed to make up for the losses of the previous four sessions.
On Wall Street the Dow Jones fell 0.26%, the tech-heavy NASDAQ index gained 0.98%, and the broader S index
Encouraged by bargain buying and a sudden drop in bond yields, US indices looked set to rebound, but lost momentum during the session and the Dow Jones ended on a fourth straight decline.
The mood was swayed by statements from Federal Reserve Cleveland branch chair Loretta Mester, who said she was open to a 0.75 percentage point hike in the policy rate in an upcoming Fed meeting if the US price spike does not subside.
“It helped turn the market around,” said Marc Chandler, head of market strategy for brokerage Bannockburn Global Forex.
After easing, bond yields rallied, with the 10-year US government bond rate approaching 3% (2.99%) again.
“It’s clear that markets are very worried about a recession right now, as central banks continue to aggressively tighten policy amid an economic slowdown and a cost of living crisis,” Craig said. Erlam, analyst for Oanda.
“U.S. inflation data on Wednesday will therefore naturally come under scrutiny as investors look for signs that pressure is easing,” the expert said, adding that “we will see a sharp drop in the coming months.” months for concerns to subside”.
The CPI inflation index in the United States is due on Wednesday and economists are betting on a slight slowdown in the rise in prices to 8.1% year on year, against 8.5% the previous month.
On Thursday, they will monitor the PPI, the producer price index, considered a leading indicator and which analysts see decelerating markedly compared to the previous month.
US President Joe Biden assured Tuesday that “inflation (was) his biggest national priority”, at a time when rising prices are weighing on American households and his popularity.
Oil prices fell for the second session in a row, with U.S. WTI slipping below $100 a barrel amid concerns over demand and as talks drag on the European crude embargo Russian.
The US WTI barrel for June delivery fell 3.23% to drop below the symbolic $100 mark for the first time in two weeks, at $99.76.
A barrel of Brent North Sea oil for July delivery fell 3.28% to $102.46.
US exercise bike specialist Peloton, already struggling due to a slowdown in demand, suffered a heavy quarterly loss and saw its stock plummet 8.70%.
The company said it was “weakly” endowed with equity, raising concerns about its sustainability.
Bank stocks fled to Wall Street as investors paid more attention to the impact of a possible economic downturn on credit volume and quality than to restoring margins with higher rates.
Bank of America (-1.68%), JPMorgan (-2.44%) or Wells Fargo (-2.00%) all fell.
British energy group Centrica, parent company of supplier British Gas, climbed 3.92% to 74.76 pence after announcing that its profit for the year would be at the top of analysts’ forecast range.
The euro fell slightly by 0.29% against the greenback, at 1.0531 dollars.
After briefly crossing the $30,000 threshold again overnight, bitcoin timidly climbed back to $31,006.