PARIS (Reuters) – European stock markets closed mixed after a burst of indicators showing that the European economy is under pressure from restrictive rates.

In Paris, the CAC 40 lost 0.34% to 7,927.43 points, while the German Dax gained 0.44% and the British Footsie finished stable.

The EuroStoxx 50 index ended the session unchanged, compared to an increase of 0.1% for the FTSEurofirst 300 and 0.12% for the Stoxx 600.

A burst of indicators was published Thursday for the euro zone: retail sales in Germany fell unexpectedly in January, while consumer spending in France fell more than expected.

Furthermore, inflation harmonized with European standards in France for February was higher than expected, while German inflation, also published on Thursday, suggests that price pressures remain.

“German macroeconomic data will fuel speculation about a faster-than-expected cut in ECB rates, as disinflation continues and economic activity remains weak,” note ING strategists.

“However, despite the slowdown in inflation, price pressures remain a concern, which should dissuade the ECB from easing too soon.”

Less favorable base effects, tensions on supply chains and leading indicators having rebounded at the start of the year make ING fear that inflationary pressures will remain.

Inflation in the euro zone, expected on Friday, will make it possible to gauge the persistence of inflation in the bloc, before the next monetary policy meeting of the European Central Bank (ECB) on March 7.

In the United States, the PCE inflation indicator was in line with consensus, encouraging markets to expect a first rate cut from the Federal Reserve in the first half of this year.

VALUES

Air France-KLM reported an unexpected operating loss in the fourth quarter on Thursday, weighed down by rising costs and disruptions caused by the conflict in the Middle East, which sent the stock down 8.62%. . Airline groups declined as investors worried about the sector’s prospects. IAG fell by 3.63%, Lufthansa by 1.01%.

Nexity plunged 20.17% after publishing results on Wednesday marked by the real estate crisis in France which pushed it to launch a social plan and cancel the payment of a dividend.

Pharmaceutical ingredients supplier Euroapi slumped 43.33% to a record, after lowering its 2024 forecast.

Aixtron fell 18.66% after the German semiconductor tools maker forecast a lower-than-expected 2024 margin and the unexpected cancellation of a major contract.

Grifols fell 34.93% after its results, with the group citing significant restructuring costs.

A WALL STREET

Wall Street is hesitant after a PCE inflation indicator which was displayed in line with market expectations.

At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.22% for the Dow Jones, compared to an increase of 0.10% for the Standard & Poor’s 500, and a Nasdaq Composite. without direction.

RATE

Yields are falling on both sides of the Atlantic after macroeconomic indicators are generally in line with the consensus.

At the close of the interest rate markets in Europe, the ten-year Treasury yield fell 4.2 bp to 4.2325%, compared to 2.7 bp for the two-year rate, to 4.6208%.

The German ten-year yield fell 5.6 bps to 2.406%, while the two-year yield fell 3.9 bps to 2.8882%.

CHANGES

Inflation indicators in Europe approaching the ECB target are putting pressure on the single currency.

The dollar gained 0.1% against a basket of reference currencies, while the euro lost 0.26% to 1.0808 dollars. The pound sterling fell 0.22% to 1.2633 dollars.

OIL

Crude is hesitating, with the latest US data raising hopes that the Federal Reserve will cut rates in June.

Brent remained at $83.73 per barrel, American light crude (West Texas Intermediate, WTI) rose 0.60% to $79.01.

(Written by Corentin Chappron, edited by Sophie Louet)

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