by Diana Mandia
(Reuters) – European stock markets ended mixed on Thursday amid fears of a slowdown in the economy and as new signs of inflationary pressures reinforce fears about rates.
In Paris, the CAC 40 ended up 0.03% at 7,196.1 points. The British Footsie gained 0.21% and the German Dax lost 0.14%.
The EuroStoxx 50 index fell 0.45%, the FTSEurofirst 300 0.12% and the Stoxx 600 0.16%.
A series of disappointing economic indicators published on Thursday illustrated the difficulties of the European economy, starting with the continent’s leading power, Germany, which saw its industrial production fall more than expected in July.
“The country indeed has problems that go beyond a cyclical slowdown, high energy prices and weaker demand from China,” said Holger Schmieding, an analyst for Berenberg.
Investors also learned on Thursday that economic activity in the euro zone had recorded growth of 0.1% in the second quarter, lower than initially estimated (0.3%).
These indicators add to a series of worrying data released this week, which showed a slowdown in economic activity in Europe, particularly in the services sector.
Global concerns about inflation and interest rates ahead of meetings of the European Central Bank (ECB) and the Federal Reserve were reignited by the surprise drop in weekly jobless claims in the United States, the rising consumer inflation forecasts in the Eurozone and oil production cuts by Russia and Saudi Arabia
In France, however, inflation should slow down a little more sharply than expected by the end of the year with an easing of pressure on food prices, INSEE said on Thursday, which also raised its growth forecast. of the French economy in 2023 to 0.9% against 0.6% previously.
VALUES
In a volatile context, defensive sectors such as public services and health, considered relatively immune to economic cycles, benefited from fears about the economy and rates and gained 1.29 and 1.12% respectively.
The basic resources compartment (-2.22%), on the other hand, suffered after disappointing Chinese trade figures and information from the Bloomberg agency according to which the United States and the European Union are preparing new customs duties. on steel from China and other countries.
Thyssenkrup dropped 2.2% and ArcelorMittal 2.5%.
Shares in the interest-rate-sensitive technology sector fell 2% on inflation fears. Apple’s decline due to Chinese restrictions on the iPhone also weighed on the sector.
In Paris, Scor gained 4.6% following the launch of its new “Forward 2026” strategic plan.
AT WALL STREET
At closing time in Europe, Dow Jones gained 0.20%, while the Standard & Poor’s 500 lost 0.43 and the Nasdaq Composite 1.26%, hit in particular by inflation fears and the fall in prices. technology stocks in the wake of Apple (-2.9%).
CHANGES
In a volatile context and fears about rates, the dollar, perceived as a safe haven, gained 0.1% against a basket of reference currencies, with the euro losing 0.24% to 1.0701 dollars.
RATE
Euro zone bond yields fell on Thursday, interrupting a four-day rise, but on a cautious note due to concerns over inflation and the ECB’s possible response next week.
The ten-year German yield lost almost 4bp to 2.6% and the two-year yield fell more than 3bp to 3%.
After a brief increase following the publication of unemployment claims in the United States, the American bond markets are also falling: the ten-year rate drops by around 2 basis points to 4.2%, while the two-year rate decreases by almost 6 basis points to 4.9%.
OIL
Oil prices fall as European markets close, as China’s uncertain economic outlook outweighs expectations of tighter supply due to production cuts announced by Saudi Arabia and Russia.
Brent fell 0.1% to $90.51 a barrel, with US light crude (West Texas Intermediate, WTI) losing 0.02% to $87.56.
(Written by Diana Mandiá, edited by Camille Raynaud)
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