PARIS (Reuters) – The main European stock markets are trending lower on Thursday in early trading due to concerns about the path of US Federal Reserve (Fed) rates amid persistent inflationary pressures.

In Paris, the CAC 40 lost 0.29% to 7,173.54 points around 07:35 GMT. In London, the FTSE 100 fell 0.29% and in Frankfurt, the Dax dropped 0.37%.

The EuroStoxx 50 index fell by 0.47% and the FTSEurofirst 300 by 0.30%. The Stoxx 600 fell 0.46%, the seventh session in the red in a row.

Futures contracts on Wall Street predict a drop of 0.26% for the Dow Jones, 0.37% for the Standard & Poor’s 500 and 0.56% for the Nasdaq the day after a marked session in the red by the fall in growth stocks against a background of rising bond yields.

Several Fed officials are due to speak during the day at the Philadelphia branch’s annual fintech conference, ahead of the period of silence its members are subject to ahead of the 19-and-19 meeting. September 20.

While traders continue to largely expect a break in Fed rates in September, the outlook for November is more uncertain and none of them are betting on a cut before June 2024, according to the FedWatch barometer.

The rise in bond yields and the fall in equity markets are linked to the latest macroeconomic indicators, in particular the ISM services index in the United States, which showed an acceleration in activity in August and a rise in input prices.

The recent surge in oil prices, following the decision of Russia and Saudi Arabia to continue to cut their production, is also helping to revive concerns about inflation.

On the stock market, the European compartment of new technologies, sensitive to variations in rates, dropped 0.73%.

The index of basic resources (-1.42%) and that of energy (-0.43%) are down after the disappointing figures for Chinese trade, imports (-7.3%) and exports (-8.8%) having fallen in August in a context of weak demand. According to the Blomberg agency, the United States and the European Union are also preparing new customs duties on steel from China and other countries, whose production is surplus.

Thyssenkrup yields 1.77% and ArcelorMittal 0.38%.

In listed company news, Valneva gained 0.91% after positive data from its Lyme disease vaccine candidate developed in partnership with Pfizer.

Scor takes 1.83% thanks to the launch of its new “Forward 2026” strategic plan, which should notably enable the group to achieve a growth rate in economic value of 9% per year.

Elsewhere in Europe, Direct Line Insurance Group climbed 13.85% and Melrose Industries 7.54% after their respective annual profit forecasts were raised.

(Written by Claude Chendjou, edited by Blandine Hénault)

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