European markets wait-and-see on the eve of US inflation

Frankfurt lost 0.38%, London 0.20% and Milan 0.26%. Paris grabbed 0.19%. In Zurich, the SMI gained 1.13%, setting new historical records.

European stock markets ended in scattered order on Wednesday, while Wall Street remained wait-and-see, taking no risk before the publication of US inflation on Thursday and a meeting of the European Central Bank.

The European indices ended as they had started, without enthusiasm: Frankfurt gave up 0.38%, London 0.20% and Milan 0.26%. Paris grabbed 0.19%. In Zurich, the SMI gained 1.13%, setting new historical records.

The New York Stock Exchange was also divided, between a Dow Jones index down 0.17%, while the S&P 500 took 0.08% and the Nasdaq advanced 0.27% around 6:00 p.m. GMT.

Since the start of the week, the markets have been on reserve pending the US consumer price index in May in the United States, which will allow them to gauge future decisions by central banks concerning their monetary policies, and in particular that of the United States. of the Federal Reserve (Fed) which is meeting next week.

Getting the ball rolling, the Bank of Canada announced on Wednesday, unsurprisingly, that it would maintain its key rate at its minimum level of 0.25%, underlining that the recovery still needed monetary support.

“The markets were slow to hear the rhetoric of central banks who hammered that even if inflation was high, there were other parameters that they looked at before reducing their support,” said Philippe Cohen, manager at Kiplink Finance.

“In fact, central banks have kept their word, neither rates nor asset repurchases have moved, so the markets are reassured,” he adds.

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Consequence: “a significant easing” of rates on the bond market, with the US 10-year yield falling to 1.48% against 1.53% at the close of the day before. At the end of March, it had exceeded 1.77%.

Tourism optimism

The values ​​of tourism were up sharply, after the validation by the European Parliament of the vaccination passport for travel this summer. The trend has also spread across the Atlantic after the United States on Tuesday relaxed its warning to travelers wishing to visit several countries including France, Germany, Italy and Spain.

In London, the IAG group (British Airways) climbed 3.27% to 205 pence and the company EasyJet from 1.99 to 986 pence. The British airline British Airways (+ 3.27% to 204.50 pence) and the Irish Ryanair (+ 1.87% to 16.89 euros) are, for their part, targeted by an investigation into the non-reimbursement of tickets during the pandemic, the British competition gendarme announced on Wednesday.

In Paris, Accor rose 1.17% to 35.37 euros, Air France-KLM 3.27% to 4.71 euros and Aéroports de Paris soared 8.15% to 122.70 euros.

In Frankfurt, Lufthansa took 2.89% to 10.89 euros and the operator of Frankfurt airport Fraport 6.02% to 61.98 euros.

The mining sector pulled down

In London, Antofagasta lost 1.77% to 1,529 pence, BHP 2.07% to 2,131 pence and Rio Tinto 2% to 6,067 pence, suffering from fears of sustained inflation. In Paris, Aperam dropped 1.95% to 46.85 euros and ArcelorMittal 0.30% to 26.47 euros.

On the other hand, the oil company Royal Dutch Shell climbed 1.20% to 1.333.00. The oil giant has promised to strengthen its climate strategy by further reducing its carbon emissions following an unfavorable court ruling.

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The scholarship holders in action

The online healthcare provider Clover Health, which had soared by 85% the day before thanks to the enthusiasm of internet users-investors, was highly volatile: after having jumped at the opening, the stock lost more than 13% around 5:50 p.m. GMT.

Marqeta arrives with a bang

The American financial services company Marqeta Inc. (+ 17.43%), valued at more than $ 14 billion just before its IPO, took off during its first steps.

On the oil, euro and bitcoin side

At around 5:50 p.m. GMT, a barrel of Brent from the North Sea for August delivery lost 0.28% to 72.02 dollars in London.

In New York, the barrel of WTI for the month of July fell 0.41% to 69.77 dollars, after having remained for a long time above the threshold of 70 dollars.

For its part, the euro appreciated by 0.04% against the greenback, to 1.2177 dollars.

Bitcoin rose 8.37% to around $ 36,440 after almost falling below the $ 30,000 floor on Tuesday, which has not happened since January.

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