(New York) Global stock markets fell on Wednesday, being cautious before the publication of the minutes of the last meeting of the American central bank (Fed) which ultimately came as little surprise to Wall Street.
The New York Stock Exchange, closed Monday after half a session and then Tuesday for the American National Day, concluded in a small decline: the Dow Jones fell 0.38%, the S
In Europe, Paris dropped 0.80%, Frankfurt 0.63%, London 1.03% and Milan 0.59%.
Investors were disappointed with services activity in China, which grew in June, but at one of the weakest paces of the year.
The data “underscores how weak the post-pandemic recovery has become even as trade tensions between Beijing and Washington escalate,” said Hargreaves Lansdown analyst Susannah Streeter.
In the euro zone too, the final estimate of the PMI activity indicator was lower than that initially published, with a decline in services, another sign of a weakening in activity.
Minutes from the U.S. Federal Reserve’s (Fed) June monetary meeting showed, as expected, that “virtually all participants believe that additional rate hikes on federal funds should be in order.”
“The minutes revealed nothing new,” said Peter Cardillo of Spartan Capital. He noted, however, that central bank economists believed a “moderate recession” was in the cards for the end of the year.
The next Fed meeting will be July 25-26.
On the bond market, the interest rate on the American loan tightened, rising to 3.93% against 3.86% on Monday as well as the German rate also, at 2.47% against 2.45% on Tuesday.
German auto stocks rose, with figures released by the Federal Automobile Agency showing sales rose 12.8% in the first half year on year. The market is relieved by a return to normal on the supply chains, even if the outlook for sales is uncertain.
Continental finished first in the Dax (3.39%), followed in particular by Mercedes-Benz (1.13%), BMW (0.52%). Volkswagen advanced 0.08%.
In Paris, Renault took 2.63%, Valéo 2.26%.
In the United States, the auto giant General Motors (GM) ended up 1.16% after announcing a 19% jump in car sales in the second quarter.
Vaccine maker Moderna climbed 1.49% on Wall Street. The American laboratory has signed a memorandum of understanding with China to produce drugs there for the Chinese market, he announced on Wednesday. The investment could amount to a billion dollars, according to a Chinese media.
Asked by AFP, Moderna – which developed one of the first messenger RNA vaccines against COVID-19 – did not confirm the amount of the investment. He said, however, that a memorandum of understanding had indeed been signed.
Oil prices have risen, prompted by proactive statements from Saudi Arabia, determined to support crude prices even if it means losing revenue.
The price of a barrel of Brent North Sea oil for September delivery rose 0.52% to close at $76.65.
As for the barrel of American West Texas Intermediate (WTI), with maturity in August, it jumped 2.82% to 71.79 dollars.
The euro was down 0.21% at $1.0856 around 4 p.m. EST.
Bitcoin was down 1.10% at $30,469.