Market: caution still prevails

( – Pending Nvidia’s results and the minutes of the latest FOMC which should attract attention this evening, caution prevails on the European markets (-0.3% in London and Frankfurt, -0 .6% in Paris) despite good news from the United Kingdom.

The UK Consumer Price Index (CPI) rose by just 2.3% in the 12 months ending April 2024, an annual rate down sharply from that of 3 .2% observed in March.

‘The Bank of England’s 2% target is in sight,’ notes ADSS, adding that if the May and June figures ‘indicate a sustained fall in inflation, MPC members are more likely to consider to reduce rates in the third quarter’.

In the meantime, the central bank could remain cautious about its monetary policy, especially since the April inflation report shows an underlying annual rate down only 0.3 points to 3.9%. (including -0.1 point to 5.9% for services).

In stock news, Colruyt is gaining more than 2% in Brussels, supported by comments from UBS which is initiating ‘purchase’ coverage with a price target set at 49.5 euros, on the food distributor’s stock.

Swiss Life fell 2% in Zurich after a quarterly point of activity, the insurer indicating that it plans to reach the lower end of its target range for results linked to fees and commissions by the end of 2024.

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