(CercleFinance.com) – Apart from London which gained 0.2%, the European stock markets lost ground this Tuesday (-0.7% in Frankfurt, -0.5% in Paris), caution prevailing before the planned meetings in the next few days, starting with the American inflation figures.
The risk linked to a possible revival of inflation in the United States, likely to delay the first rate cuts by the Fed, seems to concern investors on the eve of the consumer price index (CPI) for the month Of March.
‘This publication will be at the center of attention, because a third month of inflation higher than expected would call into question the fact that its rise is only temporary,’ warns Jim Reid, market analyst at Deutsche Bank.
These data will be closely monitored in Europe, while the ECB – which will meet the next day – appears reluctant to lower its rates before the American Federal Reserve, which itself seems increasingly hesitant to initiate this movement.
Another element encouraging caution, some analysts point to high valuations, like those at Apicil AM for whom ‘the equity indices are at high levels (in terms of cost and performance), in unknown territory’.
‘So far, the fear of not participating in the bull rally has driven capital towards the broader indices. It is now necessary to be more selective in terms of the sectors to play,’ warns this management company.
The only macroeconomic data of the morning, France’s trade deficit narrowed to 5.24 billion euros in February after 7.21 billion the previous month, thanks to a 4.5% jump in exports from a month to month.
In stock news, bp rose almost 2% in London, the oil and gas company having declared that it was counting on an increase in its production in the first quarter, as well as an improvement in its refining margin.
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