PARIS (Reuters) – The New York Stock Exchange opened moderately higher on Thursday after the publication of a CPI inflation indicator in the United States that surprised to the downside.
In early trading, the Dow Jones index gained 19.00 points, or 0.05%, to 39,740.36 points, and the broader Standard & Poor’s 500 gained 0.04% to 5,636.38 points. The Nasdaq Composite gained 0.07%, or 13.65 points, to 18,661.101.
US yields fell, with the 10-year Treasury yield shedding 8.5 basis points to 4.1946%, while the dollar dropped 0.81% against a basket of benchmark currencies.
Inflation fell in June month-on-month, with the underlying indicator also slowing in June.
“The specific components of inflation that are showing signs of decline are precisely those on which the Fed and the markets have focused,” notes Florian Ielpo, head of macro research at Lombard Odier AM, who refers to the price of services and in particular housing.
“With this report, the chances of an interest rate cut in September should continue to increase, not to mention in December,” the economist sums up.
In fact, investors are now betting that the Federal Reserve will cut rates twice this year, projections that were considered risky even earlier this week.
The stock markets will also be paying close attention to the first figures published by companies, the results season having started across the Atlantic with the financial accounts of PespiCo, which lost 2.6% after disappointing sales in the second quarter, and of Delta Air Lines, whose shares fell by 8.5%, its forecasts having come in below Wall Street estimates.
(Written by Corentin Chappron, edited by Kate Entringer)
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