(New York) European stock markets looked in vain for direction on Thursday, amid strong corporate results and mixed data on the state of the US economy, which Wall Street welcomed to give itself a boost.
In Europe, Paris ended up 0.23% and Frankfurt balanced (0.03%), but London dropped 0.27%.
In New York, the trajectory was more removed. The Dow Jones gained 1.57%, the NASDAQ index gained 2.43% and the broad index S
On the macroeconomic front, the European markets received without enthusiasm the publication of a sharply slowed US growth in the first quarter, at 1.1% at an annualized rate, under the effect of a drop in investments and despite a maintenance of the Household consumption.
The report also showed that inflation was above expectations in the first quarter.
“If we take a step back on the latest inflation figures, we see that commodity prices have come down a lot but underlying inflation is more persistent,” noted Indosuez analyst Alexandre Drabowicz.
Wall Street came out “optimistic about a gradual slowdown in the economy and inflation,” according to Oanda analyst Edward Moya, even though growth data showed inflation higher than expected in the first quarter.
This scenario appears more favorable than feared in recent weeks, which has pushed bond rates up. The yield on 10-year US government bonds was 3.52%, down from 3.44% the previous day.
The dollar benefited against the euro, which fell 0.19% to 1.1028 dollars.
The quarterly results, published the day before, of Meta (13.69%), broke with three quarters of contraction in its turnover by posting a 3% increase in its income over one year: a feat in a context of increased competition.
The group has also revised downwards, for the second time, its estimate of total costs for the current financial year, thanks to a major savings plan, which notably includes the elimination of 21,000 positions, or 24% of the workforce.
Meta’s stunt benefited the entire tech sector, whether Alphabet (3.67%) and Microsoft (3.23%), which had already surprised Wall Street on Tuesday, or Amazon (4.61%). ), the results of which were published Thursday after the close.
“On the European market, we realize that the results of the banks are very good and that’s reassuring,” noted Alexandre Drabowicz.
In London, Barclays gained 5.32%. The British bank announced higher first-quarter profit, boosted by interest rates, and its turnover benefited from a stronger dollar.
In Frankfurt, Deutsche Bank took 2.47%. Its net profit increased by 8% year-on-year and the bank also announced new measures to reduce its costs.
In Milan, Italy’s second largest bank, UniCredit, gained 3.54%. In Madrid, Spanish bank BBVA finished up 3.11%.
Oil prices rose timidly on Thursday, after the publication of US growth in the first quarter and especially after their sharp fall the day before.
A barrel of Brent North Sea oil, for June delivery, gained 68 cents, or 0.87%, to $78.37. Its U.S. equivalent, a barrel of West Texas Intermediate (WTI), for same-month delivery, edged up 46 cents, or 0.61%, to $74.76.