PARIS (Reuters) – The main European stock markets opened lower on Friday, the slowdown in US inflation not enough to reassure the markets.
In Paris, the CAC 40 fell 0.37% to 7,0406.19 points at 07:30 GMT. In Frankfurt, the Dax dropped 0.28%, against 0.40% for the FTSE in London.
The pan-European FTSEurofirst 300 index dropped 0.40%, the EuroStoxx 50 0.47% and the Stoxx 600 0.36%.
New York index futures suggest a slightly higher Wall Street opening, with the Dow Jones nibbling 0.16%, while the Standard & Poor’s 500 advanced 0.15% and the Nasdaq 0.23%.
US inflation continued to slow in July, but comments from the chair of the Federal Reserve Bank of San Francisco, who indicated that “work remains to be done”, worried the markets.
“The dynamics of disinflation are changing in nature: headline inflation could experience a period of relative stability around current levels, with the fall in core inflation counteracting base effects (on energy) that are clearly favorable”, believe the strategists of CPR AM.
Bond yields also rebounded on both sides of the Atlantic, putting equities under pressure.
In values, UBS rose 5.33% after announcing that it no longer needed financial support from the Swiss state, offered after its takeover of Credit Suisse.
(Written by Corentin Chapron, edited by Jean-Stéphane Brosse)
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