(Paris) World stock markets are confident on Thursday, after the publication of a slowdown in inflation in the euro zone in May and a first adoption of the agreement on the American debt ceiling.
After a fairly volatile session, European stock markets ended up: 0.55% in Paris, 0.59% in London, 1.21% in Frankfurt and 2.01% in Milan, driven by the rise in its values banking.
Wall Street was also in the green around 12:05 a.m. EST. The NASDAQ gained 1.04%, the S
Investor optimism was fueled by the adoption by elected House of Representatives of the text aimed at raising the debt ceiling of the United States, and thus avoiding a default.
The latest inflation figures in the eurozone also boosted investor sentiment. The consumer price index fell sharply to 6.1% after 7% in April.
“Core inflation (which excludes energy and food) fell to its lowest level in four months (to 5.3%), thanks to services prices. It will probably continue to decline, but that shouldn’t stop the ECB from raising interest rates in June, and probably in July,” commented Jack Allen-Reynolds, economist at Capital Economics.
“We will continue to move forward – with determination and without discouragement – until we see inflation return to our medium-term target of 2% in due course,” said Christine Lagarde, President of the ECB. , Thursday, while suggesting that the institution’s key rates are approaching the desired peak.
Private sector companies added more jobs in April than analysts expected, according to the monthly ADP/Stanford Lab survey, indicating that the US job market remains strong.
The Federal Reserve is scrutinizing US labor market data, which it currently finds too tight and likely to create inflationary pressures.
“The market is now waiting for the real markers, in particular the monthly report on employment in the United States which will be published tomorrow,” underlines Mabrouk Chetouane, head of market strategy at Natixis IM Solutions.
The question for investors was “whether the Fed will raise rates in June.” “Today there is no longer any doubt,” he said.
On the bond market, however, rates fell slightly. The same report finds that wage growth is slowing and “wage-induced inflation may be less of a concern for the economy despite robust hiring,” commented Nela Richardson.
The interest rate on US 10-year debt was worth 3.60% around 12 p.m. 2.28% Thursday.
The artificial intelligence (AI) software publisher C3.ai fell 11.62% on Wall Street, weighed down by forecasts considered cautious by Wall Street, which last week saw two other flagships of AI, Nvidia and Marvell Technology, raise their projections.
The specialist in dematerialized customer relationship management Salesforce also fell by 5.23%, despite results above expectations in the first quarter and an increase in the margin forecast for the year. The group nevertheless reported that some customers were cautious in their investments.
Financially-struggling Scandinavian airline SAS on Thursday announced further steep losses for its second quarter, despite rising demand, sending its stock tumbling 11.93% in Stockholm.
Oil prices were climbing around 12 p.m. ET ahead of Sunday’s meeting of the Organization of the Petroleum Exporting Countries and their Allies (OPEC). The barrel of Brent from the North Sea, for delivery in August, which is the first day of use as a benchmark contract, climbed 3.14% to 74.88 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in July, rose 3.72% to 70.62 dollars.
On the foreign exchange market, the dollar weakened against several currencies. Against the euro, it gained 0.59%, 0.9300 euro for one dollar.