(Paris) Wall Street is trying to stay balanced and European stock markets are struggling to set a course after the publication of highly anticipated indicators showing a slowdown in inflation in the United States.
In New York, the Dow Jones gained 0.07% and the S
Some of the European markets are trying to catch up with their dropout at the start of the session, digesting a week marked by corporate results and punctuated on Friday by rather gloomy European GDP publications.
The eurozone narrowly avoided recession as growth plateaued at 0.1% in the first quarter.
London rose by 0.14% as well as Frankfurt by 0.24% while Paris fell by 0.40% and Milan by 1.10%, around 9:35 a.m. (Eastern time).
Under particular scrutiny by the markets, core inflation in the United States slowed to 4.6% (vs. 4.7% previously).
This indicator, which excludes the most volatile prices, such as those of energy and food, is considered more reliable by investors for judging the sustainability of the rise in prices in the economy.
The PCE index, the inflation indicator most followed by the American central bank, meanwhile posted a slowdown to 4.2% over one year, against 5.1% the previous month.
The day after confirmation of a slowing US economy, “latest data shows strong demand and persistent inflation,” Barclays analysts said.
According to them, “the (US) central bank should maintain a stern tone due to the risks of a resumption of inflation and the reduction of fears” concerning the banking system after the crisis of confidence in March.
Investors are thus looking towards the next meeting of the Federal Reserve, expected on May 2 and 3.
The markets seem certain that the monetary institution will once again raise its key rate by 0.25 percentage points, but still hope that it will give indications for a more accommodating policy for the coming months.
After a weak start to the session, interest rates in the European and US government bond market stabilized, a sign of a slight upturn in investor confidence.
Amazon posted, like its major competitors, a first quarter above expectations, which confirms the recovery of the group’s trajectory.
Results nevertheless deemed insufficient by Wall Street where the title lost 3.64% around 9:40 a.m. (Eastern time). The New York market was harshly correcting Snap, parent company of Snapchat and its first quarter results, its share losing 19.62%.
British bank Natwest reported higher earnings on the back of interest rates but the stock fell 4.26% around 9:40 a.m. (Eastern time) in London.
The trend was affecting all European banks. Banco Sabadell fell by 6.06% in Madrid, Commerzbank by 5.27% in Frankfurt and UniCredit by 4.87% in Milan.
The euro was down 0.26% against the greenback at $1.10 around 9:45 a.m. EST.
Bitcoin fell 2.03% to $29,016.
The price of oil was trying to rebound after falling during the week below the level that had justified cuts in the production of important exporting countries in April.
The barrel of Brent North Sea took 0.80% to 79 dollars and that of the American WTI 0.48% to 75.13 dollars around 9:45 a.m. (Eastern time).