by Claude Chendjou

PARIS (Reuters) – European stock markets ended lower on Wednesday and Wall Street was also in the red at mid-session, questions about the trajectory of rates prevailing at the close over the solid quarterly results of companies published during the day .

In Paris, the CAC 40 ended down 0.17% at 8,091.86 points. The British Footsie, which reached a record 8,092.2 points during the session, fell 0.06% at the close. The German Dax fell by 0.35%.

The EuroStoxx 50 index fell by 0.42%, the FTSEurofirst 300 by 0.40% and the Stoxx 600 by 0.45%.

At the close in Europe, the Dow Jones fell by 0.39%, the Standard & Poor’s 500 by 0.32% and the Nasdaq by 0.18%, the dynamic linked to Tesla’s announcements (+10.69% ) and the results of Texas Instruments (+6.40%) on other values ​​fading. The technology news compartment (-0.03%) is now in the red.

On the bond market, sovereign yields in Europe and the United States have increased significantly, while the index measuring volatility on stocks in the United States rose 2.99%, to 16.16 points.

Investors also opted for consolidation with two sessions in a row in the green while economic indicators in the United States will be published on Thursday and the monthly PCE price index, the Fed’s preferred measure of inflation, on Friday.

VALUES IN EUROPE

Kering (-6.86%) ended in the red, the group having said on Tuesday that it anticipated a “significant” drop in its current operating profit in the first half due to the difficulties of its flagship brand Gucci.

Orange, faced with a reduction in its fixed broadband customer base in France, lost 3.57%.

Roche dropped 3.27%, the pharmaceutical laboratory having published first quarter turnover affected by foreign exchange and the end of revenues from COVID-19.

On the upside, ASMI soared 10.99% thanks to better than expected orders in the first quarter, dragging in its wake Infineon (+5.45%), STMicroelectronics (+5.38%) and Nordic Semiconductors ( +36.35%).

TODAY’S INDICATORS

In the United States, deliveries of basic capital goods rebounded by 0.2% and orders for durable goods increased by 2.6% in March, the Commerce Department announced, a sign of resilience of the American economy.

In Germany, business morale improved more than expected in April, with the Ifo business climate index at 89.4, after 87.9 in March.

RATE

Eurozone bond yields ended higher as the market digested signs of a recovery in activity that could ease pressure on the European Central Bank (ECB) to cut key rates beyond June . Bundesbank President Joachim Nagel further said on Wednesday that rate cuts after June were uncertain.

The ten-year German Bund yield ended with a gain of almost eight basis points, at 2.589%, and the two-year yield rose 4.4 points, to 3.033%.

The yield on ten-year US Treasury bonds takes 5.6 basis points, to 4.656%, and that of two years, three basis points, to 4.933%.

CHANGES

The dollar, which hit its lowest level since April 12 on Tuesday at 105.59 points, rebounded by 0.21% on Wednesday against a basket of reference currencies.

The euro stands at 1.0685 dollars (-0.13%) and the pound sterling at 1.243 dollars (-0.14%).

The Japanese currency fell to 155.11 yen to the dollar, a 34-year low, increasing the likelihood of intervention by Japanese authorities.

OIL

Oil prices are volatile, but remain at high levels: Brent falls by 0.42% to 88.05 dollars per barrel and American light crude (West Texas Intermediate, WTI) by 0.58% to 82.88 dollars around 16:00 GMT.

TO BE CONTINUED THURSDAY:

(Written by Claude Chendjou, edited by Blandine Hénault)

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