PARIS (Reuters) – European markets ended lower on Thursday, with indices taking a breather after hitting records the day before.
In Paris, the CAC 40 lost 0.63% to 8,188.49 points, while the German Dax fell by 0.76% and the British Footsie by -0.08%.
The EuroStoxx 50 index ended the session down .59%, compared to 0.29% for the FTSEurofirst 300 and 0.24% for the Stoxx 600.
European markets consolidated after hitting records on Wednesday, following the publication of a lower-than-expected inflation indicator in the United States.
Operators are once again betting on two rate cuts of 25 basis points this year for the Federal Reserve (Fed), a scenario which had been undermined by a succession of inflation indicators having surprised on the rise at the start of ‘year.
“Stocks up, bonds up, gold up, cryptocurrencies up, and copper at a record,” list Rabobank strategists.
“Nearly all assets soared after US CI inflation was a little weaker than expected, but without a decline in underlying services which are up almost 5% year-on-year and as retail sales been much weaker.
The American monetary trajectory still sets the course for the markets, which will have to wait until May 31 to obtain new information on price dynamics in the United States and could continue to benefit from the optimism triggered by the latest data.
A WALL STREET
Wall Street is progressing, driven by good company results, including those of Walmart, and by the latest inflation figures. The Dow Jones notably exceeded 40,000 points during the session.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.25% for the Dow Jones, against 0.11% for the Standard & Poor’s 500, and 0.19% for the Nasdaq Composite.
VALUES
Ubisoft collapsed by 13.46% the day after the publication of its results for the 2023-2024 fiscal year, with JPMorgan notably citing an Ebit just in line with expectations.
Elior reported on Thursday growth in its adjusted current operating profit (Ebita) of 144% in the first half, and soared by 22.79%.
The new chief executive of telecoms operator BT Group, Allison Kirkby, announced Thursday that she was targeting free cash flow to more than double over the next five years, which pushed the stock up 17.19%.
Johan Lundgren, the CEO of EasyJet who turned the group around after the Covid pandemic, will leave his position at the beginning of 2025, the company announced on Thursday, which caused it to fall by 5.99%.
Siemens announced on Thursday a drop of 2% to 2.51 billion euros in profit from its industrial activity for its second fiscal quarter, and lost 6.77%.
RATE
Yields are rebounding after falling on Wednesday, under pressure from the latest US inflation figure.
At the close of the European interest rate markets, the ten-year Treasury yield was stable at 4.3633%, compared to an increase of 4.4 bp for the two-year rate, at 4.7805%.
The yield on the German ten-year rose by 2.1 bps to 2.444%, while that of the two-year rate rose by 2.6 bps to 2.918%.
CHANGES
The dollar rebounds after falling sharply on Wednesday, with investors positioning themselves for more easing of Fed rates this year than expected.
The dollar gained 0.09% against a basket of reference currencies, while the euro lost 0.07% to 1.0874 dollars. The pound sterling fell 0.07% to 1.2676 dollars.
OIL
US data supports the barrel, with markets hoping that US demand will be supported by the Fed’s rate cut and falling inflation.
Brent strengthened by 0.54% to 83.2 dollars per barrel, American light crude (West Texas Intermediate, WTI) increased by 0.72% to 79.2 dollars.
(Written by Corentin Chappron, edited by)
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