PARIS (Reuters) – European stock markets ended higher on Thursday, marking a rebound against a backdrop of wait-and-see before the publication of crucial inflation indicators on Friday.
In Paris, the CAC 40 gained 0.55% to 7,978.51 points, while the German Dax increased by 0.22% and the British Footsie by 0.64%.
The EuroStoxx 50 index ended the session with an increase of 0.41%, compared to 0.57% for the FTSEurofirst 300 and 0.63% for the Stoxx 600.
A wait-and-see attitude dominated euro zone trading as investors prepared for the bloc’s May inflation release on Friday.
The indicator has no immediate importance, since the European Central Bank has all but committed to lowering rates next Thursday, during its monetary policy meeting. However, an upward surprise would ward off a successive decline, which would put pressure on risky assets.
Across the Atlantic, the session, on the other hand, proved to be busy, with the final GDP for the first quarter having confirmed that the growth dynamic is weakening. Activity increased by 1.3% over one year compared to 3.4% the previous quarter, while unemployment claims increased last week.
While the rate outlook has weighed on markets, which are concerned about a later-than-expected easing of monetary policies, the slowdown in the US economy could add to pressures on assets.
Caution should dominate the rest of the session in the United States, where investors will prepare for the publication of PCE inflation for May on Friday.
A WALL STREET
Wall Street declines mid-session, with investors worried about a growth figure that is worse than indicated at first reading, while crucial inflation figures are expected on Friday.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 1.01% for the Dow Jones, compared to 0.5% for the Standard & Poor’s 500, and 0.59% for the Nasdaq Composite.
VALUES
Neoen announced on Thursday that Brookfield had entered into exclusive negotiations with Impala and other shareholders to acquire a 53% stake in the group and launch a mandatory tender offer for its entire capital. The group’s trading was suspended on Thursday.
Competitor Voltalia jumped almost 18%, Spain’s Acciona by 4.98% and Portugal’s EDP Renovaveis by 3.1%.
Derichebourg lowered its annual profit forecast on Wednesday, but was up 5.19% after reporting positive cash flow in the first half.
LDC Group gained 4.36% after the poultry company published strong annual results and set new targets for the current financial year.
SAP declined 3.89% after its U.S. peer Salesforce announced a cut to its second-quarter forecast due to weak demand for its cloud computing and enterprise products.
The managing director of Banco, BPM Giuseppe Castagna, declared, in an interview published Thursday by the daily Il Sole 24 Ore, that there are “no conditions today” to merge with Monte dei Paschi, a bank controlled by the Italian state. Banco BPM and Monte dei Paschi gained 2.8% and 2.39% respectively.
SAS fell 9.5% after announcing on Thursday that it had widened its pre-tax loss for its second fiscal quarter and indicated that it wanted to complete its financial restructuring during this summer.
RATE
Yields are falling after rising sharply on Tuesday and Wednesday, as investors worry about the outlook for rates in the United States.
At the close of the European interest rate markets, the ten-year Treasury yield fell by 7.2 bp to 4.552%, compared to 5.4 bp for the two-year rate, to 4.931%.
The German ten-year yield fell 3.2 bps to 2.658%, while the two-year yield fell 1.6 bps to 3.081%.
CHANGES
The dollar falls sharply and erases its rebound on Wednesday, uncertainty hovering over the trajectory of the American economy.
The dollar lost 0.43% against a basket of reference currencies, while the euro gained 0.39% to 1.0842 dollars. The pound sterling strengthened by 0.26% to $1.274.
OIL
Crude is eroding in a context of caution before the publication of figures from the American Energy Information Administration on Thursday and before the next OPEC meeting on Sunday.
Brent fell by 1.14% to $82.65 per barrel, American light crude (West Texas Intermediate, WTI) decreased by 1.03% to $78.41.
TO BE CONTINUED FRIDAY:
(Written by Corentin Chappron, edited by Blandine Hénault)
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