PARIS (Reuters) – European stock markets ended lower on Wednesday amid concerns about British inflation, while new elements of American monetary policy and figures from Nvidia are expected after the closing.

In Paris, the CAC 40 lost 0.61% to 8,092.11 points, while the German Dax fell by 0.24% and the British Footsie by 0.55%.

The EuroStoxx 50 index ended the session down 0.44%, compared to 0.37% for the FTSEurofirst 300 and 0.37% for the Stoxx 600.

Operators were concerned about inflation figures in Great Britain, which were higher than expected and which removed the possibility of a rate cut from the Bank of England.

The slowdown in the disinflation process across the Channel also raises fears that price dynamics will not slow down as much as hoped in the euro zone, while several European monetary policy makers have declared in recent days that rate cuts after the meeting of June were not a certainty.

Two meetings expected after the close of the European markets also put pressure on trade.

The minutes of the Federal Reserve’s last monetary policy meeting will allow investors to judge the positioning of the central bank, while the comments of its president, Jerome Powell, were then perceived as accommodating.

Nvidia’s quarterly results could also drive a new direction for risky assets, the group having been one of the main responsible for the performance of American stocks in 2023 and 2024.

On Thursday, the PMI indicators for the month of May will also be published, essential data for understanding the economic trajectory of the euro zone, whose activity is beginning to recover from a year and a half of stagnation.

A WALL STREET

Wall Street hesitates mid-session before the publication of the Fed’s “minutes” during the session.

At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.15% for the Dow Jones, against 0.05% for the Standard & Poor’s 500, and an increase of 0.11 % for the Nasdaq Composite.

VALUES

Automakers fell as Beijing considers higher tariffs on imported vehicles. The sector index fell 1.34%, with Mercedes-Benz, BMW and Volkswagen losing between 1.0% and 1.9%.

Eutelsat fell 2.89% after Citi lowered its recommendation from “buy” to “neutral”.

Soitec rose 3.3% after JPMorgan raised its recommendation to “neutral”, estimating that “the worst is over”.

EPC Groupe gained 3.7% after Midcap Partners initiated monitoring of the value by recommending “buy”.

Swiss Life lost 1.88% as the insurer lowered its outlook for 2024.

Marks & Spencer reported a 58% rise in annual profit on Wednesday, above expectations, and gained 4.894%.

RATE

Bond yields rebounded in Europe in the wake of UK inflation data, with UK sovereigns under severe pressure.

The 10-year Gilt yield jumped 9.9 bps to 4.233%.

The yield on the German ten-year rose by 2.9 bps to 2.536%, while that of the two-year rate rose by 3.5 bps to 3.011%.

At the close of the European interest rate markets, the ten-year Treasury yield rose 1.2 bp to 4.4257%, compared to 3 bp for the two-year rate, to 4.8626%.

CHANGES

The pound advances after the latest inflation data, while the dollar strengthens ahead of the publication of the latest Fed monetary policy report.

The dollar gained 0.11% against a basket of reference currencies, while the euro lost 0.14% to 1.0839 dollars. The pound sterling strengthened by 0.17% to $1.2729.

OIL

Crude is falling as markets worry about the monetary outlook in the United States, where rates could remain high for longer than expected. Furthermore, crude and diesel stocks in the United States increased last week, while the consensus expected a decline, according to figures from the American Petroleum Institute.

Brent fell by 0.82% to $82.2 per barrel, American light crude (West Texas Intermediate, WTI) decreased by 0.78% to $78.05.

(Written by Corentin Chappron, edited by Blandine Hénault)

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