by Augustin Turpin

(Reuters) – European stock markets ended lower on Thursday, while Wall Street was in the red at mid-session, the rise in bond yields, supported by uncertainties over the expected pace of monetary easing from major central banks, having weighed down trade on the European and American markets.

In Paris, the CAC 40 ended with a drop of 1.52% to 7,935.03 points. The British Footsie lost 0.85% and the German Dax 1.09%.

The EuroStoxx 50 index lost 1.27%, the FTSEurofirst 300 1% and the Stoxx 600 1.06%.

At closing time in Europe, the Dow Jones lost 0.91%, the Standard & Poor’s 500 0.65% and the Nasdaq Composite 0.46%.

U.S. Treasury yields hit a six-week high on Wednesday, following May’s surprise improvement in U.S. consumer confidence and comments from Fed Governor Neel Kashkari in an interview Tuesday. having led to a recovery in the bond compartment across the Atlantic.

The release of preliminary consumer price figures in Germany did not reassure, as they revealed a larger than expected rise in inflation in Europe’s largest economy, supporting bond yields in the euro zone.

In Europe, all the major stock market indices closed in the red, with the CAC 40 acting as the red lantern in the places of the Old Continent. From a sectoral point of view, the oil and gas compartment lost 0.56% despite the rise in oil prices, that of new technologies lost 1.26% and that of “utilities” 1.9%.

Traders assess the probability of a rate cut by the American Federal Reserve (Fed) by September at only 44%, according to the CME Group’s FedWatch barometer, while in the euro zone, if a first cut is acquired for on June 6, uncertainty remains beyond this deadline.

VALUES

Securities linked to new technologies such as Soitec (-3.2%), STMicroelectronics (-2.7%), Dassault Systèmes (-0.7%) and Infineon (-3.2%) are neglected with the increase in rate.

Renault takes 3.2%, after reaching its highest since the end of 2019, Goldman Sachs having raised its recommendation to “buy” on the car manufacturer.

International Distributions Services (IDS) gained 4.3%. Royal Mail’s parent company is preparing to recommend a firm offer from Czech billionaire Daniel Kretinsky, who already holds 27.6% of the company’s capital, according to a source close to the matter.

A WALL STREET

Shares of technology groups in the cryptocurrency and blockchain sector Coinbase Global, Riot Platforms, Marathon Digital and the publicly traded shares of Hut 8 Mining lost between 1.7% and 4.3%.

American Airlines plunges 14.5% after the group on Tuesday reduced its profit forecast for the current quarter, Jefferies having also lowered its recommendation on the stock to “hold” from “buy”.

Conocophillips lost 4% and Marathon Oil rose 7.9%, with the Financial Times reporting on Wednesday that the two groups are in advanced discussions as part of a proposed all-stock acquisition of the latter by the former for a value of $15 billion company.

TODAY’S INDICATORS

German inflation calculated by European standards rose more slightly than expected in May, to 2.8%, according to preliminary data published by the Federal Statistical Office.

CHANGES

The dollar remains firm, stimulated by the rise in American yields, and advances (0.42%) against a basket of reference currencies, while the euro loses 0.41% to 1.0810 dollars.

RATE

Eurozone bond yields are rising and hit six-week highs after the publication of stronger-than-expected German inflation figures.

The ten-year German Bund yield gained 1.1 basis points (bps) to 2.6940%, with the US Treasury at the same maturity gaining 7.8 bps to 4.6197%.

OIL

Oil prices are falling again, with Brent dropping 0.78% to $83.56 per barrel, and American light crude (West Texas Intermediate, WTI) losing 0.7% to $79.27.

(Written by Augustin Turpin)

Copyright © 2024 Thomson Reuters