(Paris) Stock markets were in the green on Wednesday, with European markets confirming their rebound, after the publication of a slowdown in US inflation in April, even if it is weaker than expected.
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 gained 0.98% and the S
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 nearly 10 basis points, before stabilizing again.
The 10-year rate was back slightly below 3% (down three basis points from Tuesday’s close). And the 2-year yield, which reflects expectations of key rate increases by the US central bank, rose to 2.668% against 2.608% the day before.
“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, adds he.
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.
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, according to some, see 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.
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 .
The video game publisher reported total revenue of $1.82 billion for this quarter, up 35%. The stock rose 12.19% despite net orders, the most watched indicator in the video game industry, slightly below analysts’ expectations.
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 11:45 a.m., a barrel of Brent from the North Sea for delivery in July took 4.84% to 107.47 dollars.
A barrel of US West Texas Intermediate (WTI) for June delivery rose 5.47% to $105.23.
Separately, U.S. commercial crude oil reserves surged unexpectedly last week, reflecting a large drawdown on strategic reserves, according to the weekly report from the U.S. Energy Information Administration (EIA). ) released on Wednesday.
The euro rose 0.18% against the greenback to $1.0548.
After a first half of the session in the red, bitcoin recovered 1.09% to 31,320 dollars.