PARIS (Reuters) – European stock markets ended in the green on Thursday, investors hoping that the disinflation observed in the United States will cause the Federal Reserve to stop raising its interest rates after the July meeting.

In Paris, the CAC 40 gained 0.64% to 7,380.21 points. The British Footsie gained 0.34% and the German Dax 0.78%.

The EuroStoxx 50 index advanced 0.82%, the FTSEurofirst 300 0.73% and the Stoxx 600 0.65%.

Despite poor Chinese foreign trade figures, European markets were able to take advantage of the slowdown in price increases in the United States. Over the twelve months to the end of June, the producer price index increased by only 0.1%, its weakest increase since August 2020, after +0.9% in May.

Citigroup strategists said in a note that slower job growth and weaker-than-expected core consumer prices “finally provide some support for the Fed’s rhetoric that supply and demand balance out, allowing inflation to subside.

On Wall Street, the Dow Jones index gained 0.13%, the Standard & Poor’s 500 0.55% and the Nasdaq Composite 1.07%.

VALUES

In corporate news, Casino fell 2.53% after reporting a second-half loss and lowering its full-year profit outlook.

The watchmaker Swatch gained 6.90% after recording record growth in the first six months of the year, thanks to the lifting of health restrictions in Asia and sustained activity in Europe and South America. North. Red lantern of the CAC 40, Schneider Electric lost 2.07%, Bank of America would have lowered its advice to “underperformance”, according to market sources.

RATE

The encouraging evolution of inflation in the United States, by suggesting that interest rates could soon reach a terminal level, benefits government bonds.

The yield on ten-year Treasuries fell 5.9 basis points to 3.8025%. Its German equivalent ended at 2.46% after opening above 2.55%.

CHANGES

The dollar remains under pressure, the index measuring its evolution against a basket of major currencies has reached a low since April 2022. The euro is displayed at 1.1189 dollars, up 0.55%. The single currency is heading for a sixth positive day, its longest streak of gains against the dollar this year.

The pound sterling registered a new 15-month peak, the British economy had contracted less than expected in May (-0.1%, against -0.3% for the Reuters consensus).

OIL

On the oil market, Brent 0.86% to 80.8 dollars a barrel and American light crude (West Texas Intermediate, WTI) 0.83% to 76.38 dollars.

(Laetitia Volga, editing by Kate Entringer)

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