by Claude Chendjou

PARIS (Reuters)-European scholarships finished on short variations on Thursday a volatile session marked by an avalanche of contrasting macroeconomic indicators in Europe and the United States, while the euphoria aroused by the Sino-American provisional agreement on trade begins to fade.

In Paris, the CAC 40 finished on a modest gain of 0.21% at 7,853.47 points. The British Footsie advanced by 0.57% and the German Dax increased by 0.65%.

The Eurostoxx 50 index won 0.11%, the FTSEURofirst 300 0.52%and the Stoxx 600 0.51%.

At the time of the fence in Europe, the Dow Jones advances 0.24%, the Standard & Poor’s 500 of 0.16%, while the Nasdaq fell 0.14%.

Large clues in Europe and the United States alternated one foot in the green and another in the red during the session as investors integrated the latest economic data.

American indicators, published Thursday, showed a stagnation of unemployed registration last week, a surprise contraction of production prices (PPI) in April, an unexpected increase in retail sales in April, stability of industrial production in April, an improvement in activity conditions in the Philadelphia region in May and a lower than expected decrease in the “Empire State” activity index in May.

None of these statistics caused significant movements to Wall Street but all show signs of slowing down the American economy even if it is still solid.

“The production will eventually weaken, even if no other customs right is imposed on a global scale, since households and businesses have anticipated their purchases of sustainable goods and high -value investment when possible,” warns Samuel Tombs, chief economist at Pantheon Macroeconomics.

Walmart, considered a reliable consumption barometer, said Thursday that it would start to increase its prices at the time of the month due to the high cost of customs duties.

Another element of prudence: in a speech at Thomas Laubach Research Conference, the president of the Fed, Jerome Powell, stressed that tenders associated with price increases could become more frequent in the years to come.

In Europe, the session was also marked by a rain of indicators such as inflation figures in France, the British gross domestic product (GDP) and in the euro zone, as well as data on industrial production in these two geographic areas. These statistics are also contrasting, but it is the energy compartment, with a possible nuclear agreement between the United States and Iran, which has mainly influenced exchanges.

Values ​​in Europe

Total European oil groups, BP and Shell fell 0.47%to 3.34%, while the sector index on the STOXX 600 abandoned 0.98%.

European defense groups Hensoldt, Rheinmetall, Renk increased from 5.34% to 8.84% while Ukrainian President Volodimir Zelensky, said that he would not participate in person, in the absence of his Russian counterpart Vladimir Putin, in direct peace talks between Russia and Ukraine in Turkey, preferring to send a delegation Istanbul.

Engie took 3.56% thanks to quarterly results increased by its infrastructure pole.

Ubisoft plunged 18.20% after the announcement of a 20.5% drop in its net reservations (“Net Bookings”) over its annual financial year.

Thyssenkrupp dropped by 12.45%, the German group having recorded a decline in its quarterly operating profit.

Changes

The dollar fell 0.20% in the face of a basket of international currencies after economic data, including an indicator of consumer health showing that retail expenses have slowed down in April, the uncertain economic prospects weighing on feeling.

“These are customs duties, but it is also the underlying weakness of American consumers at this stage, and the second quarter will be a low quarter in terms of growth, since we tackled it with low morale and great political uncertainty,” explains Thierry Wizman, Changes Stratège and rate at Macquarie.

The euro nibbles 0.05%, to 1.1180 dollars, while the pound sterling is exchanged at 1.3278 dollars (+0.14%).

RATE

The yield of American treasury bills at ten years fell from 6.3 base points to 4.465%, and that at two years fell from 6.7 points, to 3.986%. The weakness of inflation, retail sales and industry data leaves the Fed capable of lowering its guiding rates during the year.

In the euro zone, the yields followed the trend on the Treasuries with a ten -year German Bund rate which sold 6.6 base points at the end of 2.626%, while the two years lost 5.7 points, to 1.883%.

OIL

Donald Trump having mentioned a very close agreement between the United States and Iran on nuclear power on Thursday, which could allow a lifting of sanctions against Tehran and an increase in its gross production, the oil market is growing strongly. In addition, the International Energy Agency (IAI) provides that the growth in global oil demand will slow down for the rest of the year.

At the end of the scholarships in Europe, the Brent loses 2.72% at 64.29 dollars per barrel and the light American crude (West Texas Intermediate, WTI) 2.82% at 61.35 dollars after a decline in more than 3%.

(Written by Claude Chendjou, edited by Sophie Louet)

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