(New York) Global stock markets were firmly anchored in the green on Wednesday, satisfied with the decline in inflation in the United States which gives more arguments to a less strict monetary policy from the American central bank.
Wall Street closed higher, the NASDAQ and the S
In Europe, Paris gained 1.57%, Frankfurt 1.47%, London 1.83% and Milan 1.75%.
Inflation slowed sharply again in June in the United States to 3% year on year, against 4% the previous month, thus reaching its lowest level since March 2021, according to the CPI index published by the Department of Labor.
While it remains above the US central bank’s (Fed) target of 2%, the pace was slightly weaker than analysts expected on a few points, notably with regard to core inflation, which excludes volatile food and energy prices.
In the bond market, state interest rates fell sharply from near their annual high before the release. The US 10-year interest rate rose to 3.85% around 4:20 p.m. (Eastern time), against 3.97% on Tuesday at the close and the French rate at the same maturity of 3.10% against 3 .21% on Tuesday.
While markets expect the Fed to raise its key rate by a quarter of a point after its next meeting on July 26, after a break in June, they are increasingly undecided on what the American monetary institution will do next.
“The outlook for inflation is weak enough to suggest that the July rate hike will be the last in the cycle,” said LBBW’s Karl Haeling.
He also believes that the inflation figure will give more weight to supporters of a less harsh monetary policy in future meetings.
This hurt the dollar: it slipped to a 16-month low against the euro at $1.1137 to the euro, falling 1.16% around 3:35 p.m. EST. The greenback sank 1.36% against the yen to 138.48 yen, as the Japanese currency was boosted by speculation around a tighter turn from the Japanese central bank.
The European semiconductor sector was largely benefiting from a positive assessment by Jefferies in a note.
Infineon took 3.39% in Frankfurt, STMicroelectronics climbed 4.68% and Soitec 6.59% in Paris, ASM International gained 6.46% in Amsterdam.
On Wall Street, Nvidia, the darling of investors enthusiastic about the artificial intelligence sector, jumped 3.53% to $439.02.
European airlines were suffering after a downward revision of share price targets by analysts at Deutsche Bank. They point out that “although the idea of a slowdown” in ticket price increases “has not found resonance with the airlines”, they are nevertheless “exerting some caution”.
Air-France-KLM lost 3.80%, IAG 2.28%, Lufthansa 0.14%.
In New York, the Domino’s Pizza franchise has whetted investors’ appetites soaring more than 11% after announcing a deal with Uber to post menus on its meal delivery app.
Oil prices remained on an upward trend.
The price of a barrel of Brent from the North Sea for delivery in September gained 0.89%, to close at 80.11 dollars, crossing the symbolic threshold of 80 dollars, a high for more than two months.
As for the barrel of American West Texas Intermediate (WTI), with maturity in August, it took 1.22%, to 75.75 dollars.
Bitcoin lost 0.87% to $30,310.
