(News Bulletin 247) – The European stock markets gravitate around their balances this Wednesday (+0.1% in Frankfurt, -0.1% in Paris), in particular London (-0.1%), where the latest disappointing figures from UK inflation seems to be weighing on the trend.
The rise in British consumer prices did not fall back in May, as it came out on par with its level in April, at 8.7% over one year, while economists on average hoped for a drop to less than 8.5%.
‘This time it is not about energy or food inflation – transitory shocks more easily managed by institutions – but rather a more structural and long-term problem linked to low productivity and a labor market tense’, notes Liberum.
The persistence of high inflation could increase the pressure on the Bank of England to decide on a further rate hike of 25 basis points on Thursday and to continue its monetary policy tightening in the months to come.
On the values ​​front, adidas gains 3% in Frankfurt with the support of UBS, which raises its recommendation from ‘neutral’ to ‘buy’ on the title of the sporting goods supplier, pointing to ‘firsts signs of inflection in sales’.
Conversely, the chemist Lanxess (-1% in Frankfurt) and the tire manufacturer Pirelli (-1% in Milan) lost ground on the stock market, under the weight of downgrading recommendations, respectively to ‘hold’ at Stifel and to ‘ neutral’ at Oddo BHF.
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