A trader in Brussels, Belgium
PARIS (Reuters) – The main European stock markets are on the decline on Wednesday morning in a context of questions about the strategy of central banks but the hope of stimulus measures for the Chinese economy limits the losses a little.
In Paris, the CAC 40 lost 0.32% to 7,185.92 points around 07:50 GMT. In London, the FTSE 100 fell by 0.11% and in Frankfurt, the Dax fell by 0.29%.
The EuroStoxx 50 index fell by 0.28%, the FTSEurofirst 300 by 0.14% and the Stoxx 600 by 0.18%.
Futures contracts on Wall Street predict an opening also in the red for the three main New York indices the day after a session marked by a cautious rise in a climate of wait-and-see before the figures of US inflation and the decisions Federal Reserve monetary policy announcements due next week.
The European Central Bank (ECB) also meets next week and the Bank of England (BoE) in about two weeks.
In China, the sharp contraction in exports in May (-7.5% year on year) combined with the moderation of domestic demand is fueling hopes for support measures from the People’s Bank of China, according to Carlos Casanova, economist for Asia at UBP.
In today’s economic data, the OECD said global economic growth would only pick up moderately in 2024 due in part to the impact of central bank rate hikes. The World Bank was also more cautious the day before for 2024 in its forecasts.
On the stock market, Inditex (+5.02%) is driving the European distribution sector (+2.21%) which signs the best performance of the Stoxx 600. The owner of Zara reported on Wednesday a 54% increase in its earnings in the first quarter. Its competitor H&M, which will publish its results on June 15, takes 1.81%.
In Paris, Atos is volatile after the upward revision of the 2026 outlook for its Tech Foundations branch, while luxury stocks such as Hermès (-1.11%) or LVMH (-0.4%) are neglected.
(Written by Claude Chendjou, edited by Blandine Hénault)