by Claude Chendjou

PARIS (Reuters) – The main European stock markets, apart from London, ended in the green on Thursday, while Wall Street was in disarray at mid-session, investors having been divided between the solid results of Nvidia and macroeconomic indicators which plead for maintaining key rates at a high level.

In Paris, the CAC 40 ended up 0.13% at 8,102.33 points. The British Footsie, weighed down by utilities, lost 0.37%. The German Dax gained 0.03%.

The EuroStoxx 50 index gained 0.20% and the FTSEurofirst 300 0.08%. The Stoxx 600, which rose during the session to 523.73 points, reduced its closing gains, gaining only 0.06%, to 521.49 points.

At the close in Europe, the Dow Jones fell by 0.62%, while the Standard & Poor’s 500 rose by 0.28% and the Nasdaq by 0.84%. This last index, which set a record at the opening, is supported by the new technologies compartment (+1.83%) and that of semiconductors (+1.43%).

Nvidia, for which investors have high expectations, announced on Wednesday a turnover forecast for the current quarter higher than expected, a split by ten of the nominal value of its share and an increase in its quarterly dividend by 150%.

Nvidia’s quarterly accounts boosted stocks in Europe for a large part of the session, notably the new technologies index (+1.08%) on the Stoxx 600.

But the stock markets in Europe ended up reducing their gains after macroeconomic indicators from the United States which showed an economy still vigorous despite the desire of the American Federal Reserve (Fed) to curb demand. Jobless claims in the United States fell last week to 215,000, while economic activity in the country accelerated in May to its highest level in just over two years, despite a surge in price. This suggests that goods inflation could accelerate in the coming months.

In the euro zone, monthly PMI indices published during the day showed that private sector activity grew at its fastest pace in a year in May.

These indicators are not likely to favor an imminent and marked reduction in central bank rates so that sovereign bond yields have tightened, which has limited the upward potential of stocks.

For Chris Williamson, chief economist at S&P Global Market Intelligence, US PMI data suggests the final step towards the Fed’s 2% inflation target is still a long way off.

VALUES IN EUROPE

Soitec fell 3.32% as the semiconductor materials maker reported a decline in its annual Ebitda margin.

National Grid fell 10.86% as the British energy systems group announced a capital increase at a discount.

Embracer plunged 8.77% as the Swedish video game publisher reported quarterly sales below expectations and announced the resignation of its financial director Johan Ekström.

Julius Baer gained 3.17% while its assets under management increased by 10% to 471 billion Swiss francs over the first four months of the year.

CHANGES

The dollar rises with the acceleration of economic activity in the United States in May, the greenback gaining 0.04% against a basket of reference currencies.

The euro is trading at $1.0824 (+0.03%) and the pound sterling at $1.2712 (-0.02%).

RATE

U.S. Treasury yields are rising after data showing continued strength in the labor market and business activity. That of ten-year Treasuries takes 5.5 points, to 4.4866%, and that of the two-year maturity jumps by almost seven points, to 4.9417%, after having touched a three-week high.

In the euro zone, the yields on the ten-year and two-year German Bund rose respectively by 6.7 points, to 2.592%, and by 7.8 points, to 3.079%.

OIL

Oil prices are volatile, with investors struggling to interpret the significance of the latest macroeconomic indicators. At the same time, crude oil inventories increased last week in the United States, suggesting weak demand for oil.

Brent fell by 0.35% to $81.61 per barrel and American light crude (West Texas Intermediate, WTI) by 0.53% to $77.16.

(Written by Claude Chendjou, edited by Blandine Hénault)

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