PARIS (Reuters) – European stock markets ended in disarray on Thursday, mirroring developments on Wall Street, with mixed corporate results offsetting hopes of a pause by the Federal Reserve in its monetary tightening cycle.
In Paris, the CAC 40 gained 0.28% to 7,381.78 points. The British Footsie fell 0.14% and the German Dax fell 0.39%.
The EuroStoxx 50 index gained 0.07%. The FTSEurofirst 300 and the Stoxx 600 ended up perfectly stable.
At the close in Europe, the Dow Jones and the S&P 500 were down 0.83% and 0.35% respectively, under pressure from Disney (-8.09%) after a fall in the number of subscribers to its streaming service and PacWest (-24.65%), whose drop in deposits last week revives fears for the banking sector.
On the macro side, the producer price index rose less than expected in April, which, combined with the moderation in consumer prices announced on Wednesday, raises hopes that the Fed could pause its interest rate hike. rate.
The Bank of England (BoE) announced a quarter-point hike in its key rate and its governor indicated that the central bank would “stay the course” as it tries to control inflation the most. highest of the G7 countries.
“The wording of the statement (leaves) more leeway to raise rates, but absolutely no commitment to do so,” said Orla Garvey at Federated Hermes.
VALUES
On the Paris Stock Exchange, Engie gained 0.68% after announcing that its 2023 results should be at the top of its forecast ranges. Dutch bank ING rose 3.94% after reporting better-than-expected quarterly profit and a new share buyback program of up to 1.5 billion euros.
By contrast, Bayer fell 7.46%, the biggest drop in the Dax, after announcing a bigger-than-expected drop in its gross operating surplus and that its annual results would probably be at the lower end of the range. planned.
RATE
Government bond yields fall as US price and employment data support Fed dovish expectations in June.
On the American market, the ten-year fell almost five basis points to 3.3861% and the two-year fell below 3.9%.
The ten-year-old German lost almost eight basis points at the end of the session to 2.217%.
CHANGES
Despite the decline in bond yields, the dollar is on the rise (+0.57%) against a basket of international currencies. Among these, the pound sterling lost almost 1% against the greenback at 1.25, on profit taking after having posted a peak since April 2022 the day before.
In China, the yuan is trading at a two-month high against the dollar amid growing signs that the country’s economic recovery is weak.
OIL
The oil market retreats as the political deadlock over the US debt ceiling raises fears of a June 1 default.
Brent lost 1.18% to 75.51 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.46% to 71.5 dollars.
(Laetitia Volga, edited by Camille Raynaud)
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