PARIS (Reuters) – European stock markets moved on an undecided note on Thursday, with investors divided between the moderation of underlying inflationary pressures in the United States which are calling for a pause on rates from the American Federal Reserve (Fed) and the prospect that the European Central Bank (ECB) will raise its rates to a new level in the euro zone.

In Paris, the CAC 40 lost 0.15% to 7,211.77 points around 07:40 GMT. In London, the FTSE 100 gained 0.36%, driven by oil stocks. In Frankfurt, the Dax fell by 0.17%.

The EuroStoxx 50 index lost 0.11%, while the FTSEurofirst 300 advanced by 0.14% and the Stoxx 600 by 0.12%.

These indices were all indicated in the green before the opening of the session and now vary within a narrow range.

Futures contracts on Wall Street predict an increase of 0.11% for the Dow Jones, 0.23% for the Standard & Poor’s 500 and 0.36% for the Nasdaq the day after the publication of the The monthly consumer price index (CPI) in the United States showed a slowdown in underlying inflation to 4.3% on an annual basis. The producer prices which will be published at 12:30 GMT could support the scenario of a pause on Fed rates next week.

The ECB’s monetary policy statement will be published at 12:15 GMT, followed half an hour later by a press conference by its president, Christine Lagarde.

Analysts are torn between a pause on ECB rates and a 25 basis point hike, but since a source told Reuters that the Frankfurt institute forecast inflation of more than 3% in the euro zone in 2024, fears of a further increase in the cost of credit in the euro zone have increased.

“The inflation dynamics are simply too strong for the ECB to take a break,” said Piet Haines Christiansen, an economist at Danske Bank.

A quarter-point hike in ECB rates would take the deposit rate to 4.0%, the highest level since the launch of the euro in 1999, when it was still negative 14 years ago. month.

On the stock market, the positive trend in Europe is driven by the defensive health sector (+0.45%) and the energy sector (+1.09%), the International Energy Agency (IEA) having said on Wednesday to expect a significant deficit on the crude market in the fourth quarter.

In terms of values, TotalEnergies, up 0.75%, is among the leading stocks in the CAC 40. Rémy Cointreau (-3.1%) and Pernod-Ricard (-2.1%) are penalized by the lowering of Barclays recommendation to “underweight” versus “overweight”.

Elsewhere in Europe, Deliveroo jumped 5.36% as Sachem Capital said in a report that it believed the British food delivery company could be a takeover target.

(Written by Claude Chendjou, edited by Blandine Hénault)

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