PARIS (Reuters) – European stock markets ended hesitantly on Wednesday after new restrictive comments from monetary policy officials and in a wait-and-see context before the publication of American inflation on Friday.

In Paris, the CAC 40 gained 0.12% to 7,583.43 points, while the German Dax ended without a marked direction. The British Footsie gained 1.02%, supported by a sharply declining inflation indicator for November in the United Kingdom.

The EuroStoxx 50 index ended the session uncertain, compared to an increase of 0.19% for the FTSEurofirst 300 and 0.28% for the Stoxx 600.

Risk appetite is eroding after a series of central bank decisions triggered a significant rally in risky assets last week.

Monetary policy makers nevertheless insist that rates will remain high for longer while the markets anticipate large-scale rate cuts next year for all the central banks of rich countries.

Members of the Governing Council of the European Central Bank Joachim Nagel and Klaas Knot spoke out against these market expectations on Wednesday, stressing that rate cuts were not imminent.

Investors are also cautious ahead of Friday’s release of the Federal Reserve’s preferred gauge of price momentum, the PCE inflation index, and could react strongly to an upside or downside surprise.

The end-of-year context may also explain the low price variations, with liquidity being lower as institutional investors close their positions for tax reasons.

VALUES

Argenx fell 25.61%, to last place in the Stoxx 600, after the negative results of a clinical study.

Italian infrastructure fund F2i is ready to create a vehicle to invest around a billion euros alongside US fund KKR in Telecom Italia’s fixed network, sending the operator’s stock up 5.75%. %.

The Spanish government ordered the national public fund to take a 10% stake in Telefonica, the SEPI (State Company of Industrial Participations) announced Tuesday in a press release, which caused the stock to rise by 3.2%.

The good performance of the two operators supported the telecoms sector, which advanced by 1.16%.

United Internet climbed 12.28% after the Germany-based internet service provider said it expects its profits to rise next year.

A WALL STREET

Wall Street is hesitant at closing time in Europe, waiting before the publication of PCE inflation but supported by a stronger than expected consumer confidence indicator.

At closing time in Europe, trading on the New York Stock Exchange indicated a stable Dow Jones and Standard & Poor’s 500, compared to an increase of 0.2% for the Nasdaq Composite.

RATE

Yields are falling after inflation figures in the United Kingdom, which fell sharply in November.

At the close of the European interest rate markets, the ten-year Treasury yield lost 1 basis point to 3.9125%, compared to a decline of 5.1 bp for the two-year rate, to 4.386%.

The German ten-year yield fell 4 bps to 1.979%, closing below 2% for the first time since March, while the two-year rate fell 4.2 bps to 2.475%.

The yield on the British ten-year note closed at 3.527%, its lowest level since April.

CHANGES

The pound falls after the decline in British inflation in November, which could encourage the Bank of England to ease rates more than expected in 2024.

The dollar gained 0.08% against a basket of reference currencies, while the euro lost 0.24% to 1.0954 dollars. The pound sterling fell 0.54% to $1.2661.

OIL

Tensions in the Red Sea continue to support crude, despite rising oil stocks in the United States, according to data from the American Petroleum Institute. The International Energy Agency also announced that American production had reached a record, at 13.3 million barrels per day.

Brent advanced 0.86% to $79.91 per barrel, American light crude (West Texas Intermediate, WTI) rose 0.93% to $74.63.

(Written by Corentin Chappron, edited by Bertrand Boucey)

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