PARIS (Reuters) – The main European stock markets are on the decline on Wednesday morning after data deemed disappointing on activity in China in May, which revived fears of a global economic slowdown and took precedence over the easing of the inflationary pressures reported in several European countries.
In Paris, the CAC 40 lost 0.64% to 7,163.80 points around 07:50 GMT. In London, the FTSE 100 dropped 0.53% and in Frankfurt, the Dax lost 0.56%.
The EuroStoxx 50 index fell by 0.63%, the FTSEurofirst 300 by 0.43% and the Stoxx 600 by 0.48%.
Futures contracts on Wall Street also predict a decline of 0.28% for the Dow Jones, 0.26% for the Standard & Poor’s 500 and 0.27% for the Nasdaq.
In China, manufacturing activity slowed faster than expected in May with a PMI index at 48.8, while the services index came out at 54.5 in May after 56.4 in April.
The data came as a surprise to investors who had been anticipating a surge of China’s economy following the lifting of restrictions related to the COVID-19 epidemic, with some even worried that inflation in Europe would reaccelerate under the impetus. from China.
Statistics released on Wednesday, however, show that consumer price inflation in France has slowed more than expected this month, to 6.0% year on year, after 6.9% in April, while producer prices fell in April, by 5.1% after rising 1.9% in March.
Awaiting 12:00 GMT inflation data from Germany and the wider euro zone on Thursday, the indicator in Spain also showed on Tuesday that consumer prices in May registered a sharper-than-expected slowdown. (+2.9% over one year).
Household consumption expenditure on goods in France also fell by 1% in April, according to INSEE. GDP growth in France in the first quarter was confirmed at 0.2% and the government said Wednesday to maintain its growth forecast of 1% for this year.
On the stock market, the luxury sector, particularly exposed to China, fell by 1.41%. In Paris, Kering lost 2.04%, Hermès 1.63% and LVMH 1.25%.
Elsewhere in Europe, the Swiss Richemont fell by 1.46% and the Italian and Moncler by 0.57%.
The new technologies compartment fell victim to profit taking the day after its sharp rise linked to Nvidia’s announcements. Infineon, STMicroelectronics and Worldline lost 0.49% to 2.14%.
(Written by Claude Chendjou, edited by Blandine Hénault)
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