(Paris) World stock markets are down on Friday and bond rates are rising, after the publication of the producer price index in the United States for the month of July, which rose more than expected.
In Europe, Paris ended down 1.26%, Frankfurt 1.03% and Milan 1.05%.
London fell 1.24% as its session was also marked by the 0.2% rise in UK gross domestic product (GDP) in the second quarter compared to the first, which supports expectations of a further increase in UK central bank (BoE) rate in September.
Wall Street opened lower and around 12 p.m. EST on S
The Toronto Stock Exchange was up midday on Friday, helped by strength in energy and telecommunications stocks, and despite weakness in technology and metals.
The composite index S
Investors welcomed during the session the release of the Producer Price Index (PPI) in the United States in July “which is seen as the last important figure for the month of August”, comments Guillaume Chaloin, director of equity management at Delubac AM.
This indicator, which reflects “inflation seen from the business side”, rose 0.3% month on month in July, while analysts expected 0.2% and prices had been flat in the month. before, details the analyst.
The fears are “essentially about the wage burden, rising wages” contributing to the inflationary spiral that “central banks are afraid of, because it is difficult to break”, explains Mr. Chaloin.
It is also “important to note that the components of the PPI are used in the calculation of consumer price inflation (CPI),” note analysts at Berenberg Capital Markets.
The day before, the PCI index in the United States for July, the main measure of inflation, came out a little below analysts’ forecasts, which was not enough to completely allay their fears of a possible further rise in key rates of the US central bank, the Fed, at the next meeting of its monetary committee in September.
San Francisco Fed President Mary Daly also told Yahoo! Finance that “it wasn’t a single number that declared” the Fed’s “victory” over inflation. “There is still work to do and the Fed is fully committed to resolutely bringing inflation back to its 2% target,” she said.
In the bond market, yields on 10-year Treasury bills stood at 4.15% around 11:50 a.m. (Eastern Time), down from 4.11% the previous day. “The low in the session the day before was 3.95%,” said Guillaume Chaloin, noting that “the rise in oil prices” also contributed to the rise in bond rates.
In Europe, the yield on the German 10-year government bond stood at 2.62%, down from 2.53%.
Driven by the rise in rates on the bond market, the technology sector was down, in Europe and the United States.
In New York, around 11:55 a.m. (Eastern Time), Meta dropped 1.56%, Nvidia 3.89% and Tesla 2.33%, for example.
In Europe, Teleperformance fell by 4.16% and STMicroelectronics by 3.00% in Paris. Infineon lost 3.14% in Frankfurt. ASML dropped 3.11% in Amsterdam.
Swiss banking giant UBS gained more than 4.5% in Zurich after announcing that it was abandoning state and central bank support measures to facilitate the takeover of Credit Suisse, saying they were no longer necessary.
Oil prices up on Friday around 3:50 p.m.: a barrel of Brent North Sea, for October delivery, gained 0.53% to $86.86, as did West Texas Intermediate (WTI) at 83, $26.
The Dutch TTF futures contract, considered the European benchmark for natural gas, fell 3.43% to 35.78 euros per megawatt hour (MWh).
On the currency side, the dollar gained 0.27% against the euro, to 1.0951 dollar for one euro.
