May 13 (Reuters) – European stock markets ended higher on Wednesday, rebounding from losses in the previous session, even as inflation fears keep bond yields high and a U.S. peace deal and Iran remains uncertain.
In Paris, the CAC 40 ended the session with a gain of 0.35% to 8,007.97 points, recovering after a spell in the red. The British Footsie gained 0.58% and the German Dax gained 0.61%.
The EuroStoxx 50 index ended with a gain of 0.70%, the FTSEurofirst 300 by 0.85% and the Stoxx 600 by 0.66%.
A certain wait-and-see attitude has set in on the markets as Donald Trump began this Wednesday the first visit by an American president to China in almost a decade, during which the tenant of the White House could encourage Beijing to convince Tehran to reach an agreement to end their conflict.
Although the president has said he does not need help from Beijing, increased pressure could be welcome, given that diplomatic efforts appear to be at an impasse, keeping oil prices high and fueling fears inflationary.
Producer prices (PPI) in the United States jumped 1.4% last month, representing their biggest increase in four years, according to data released on Wednesday, just a day after the publication of a consumer price index at its highest level in three years, precisely because of the surge energy prices.
“These numbers are very concerning in terms of inflation and it simply means that Kevin Warsh is not likely to cut rates anytime soon, if not until the end of the year,” said Peter Cardillo, chief economist at Spartan Capital Securities.
The US Senate on Tuesday confirmed the nomination of Kevin Warsh as governor for a 14-year term and must now vote on his confirmation for a four-year term as chairman of the Fed, in a separate vote scheduled for Wednesday.
In the euro zone, more dependent on energy imports than the United States and therefore more vulnerable, investors expect the European Central Bank (ECB) to carry out three rate increases by the end of the year.
PATROL
Oil prices fluctuate less on Wednesday, offering some respite as investors await new developments in the Middle East and Donald Trump’s visit to China.
Brent fell 0.91% to $106.79 per barrel and American light crude (West Texas Intermediate, WTI) gained 0.19% to $102.45.
The conflict continues to have serious repercussions on global energy markets. According to the International Energy Agency (IEA), global oil supplies are expected to decline by around 3.9 million barrels per day in 2026 due to disruptions caused by the war in Iran.
The agency now expects a drop in demand of 420,000 barrels per day this year, compared to a drop of 80,000 barrels per day in its previous forecast.
OPEC also lowered its forecasts for growth in global oil demand in 2026 on Wednesday.
VALUES
Numerous publications punctuated discussions in Europe on Wednesday.
In Paris, Alstom gained 2%, the TGV manufacturer having published a generally stable annual adjusted operating result.
French steel tube maker Vallourec climbed more than 12% after a 4% rise in first-quarter operating profit, while investment group Eurazeo gained 1.9% after reporting assets under management (AUM) up 7% year-on-year at the end March.
Elsewhere in Europe, Zurich Insurance gained 4% thanks to an increase in gross premiums written in the first quarter for its general insurance business, while Allianz advanced 1.1% thanks to a 52% jump in its quarterly net profit.
Merck KGaA climbed more than 7% after raising its adjusted operating profit forecast for this year.
Adecco plunged more than 16%, with analysts noting a below-expected gross margin that offset better-than-expected organic revenue growth.
Dutch bank ABN Amro jumped 8.6%, with investors welcoming quarterly profit up 12% year-on-year, above expectations.
On the Stoxx 600, technology stocks performed well on Wednesday (+2.39%), driven by the semiconductor industry. Infineon Technologies, STMicroelectronics and Aixtron ended with gains ranging from 9% to 11%.
Basic resources for their part jumped by 4.26%.
A WALL STREET
The New York Stock Exchange is trading in mixed order this Wednesday, as investors analyze data on producer prices and their impact on monetary policy.
At closing time in Europe, the Dow Jones fell 0.44%, while the Standard & Poor’s 500 gained 0.21% and the Nasdaq Composite advanced 0.72%.
The wave of massive sales in the semiconductor sector, which weighed on the markets on Tuesday, stabilized on Wednesday. The Philadelphia SE Semiconductor index is up around 2%.
Nebius Group shares jumped more than 15%, as the technology group published a spectacular jump in its quarterly turnover.
TODAY’S INDICATORS
In addition to producer prices in the United States, euro zone indicators published on Wednesday painted a bleak picture for the bloc, with high inflation in France and signs of economic slowdown.
The second estimate of gross domestic product (GDP) for the period January-end of March confirmed on Wednesday the slowdown in growth in the euro zone, which stood at 0.1% compared to 0.2% during the last three months of 2025.
In France, the unemployment rate surprised on Wednesday, reaching 8.1% of the active population in the first quarter, its highest level since the first quarter of 2021.
Inflation, harmonized according to European standards (HICP), stood at 2.5% over one year in April in France, in line with expectations, according to final data published Wednesday by INSEE.
CHANGES
The dollar strengthens against a backdrop of inflationary fears and geopolitical uncertainty in the Middle East and gains 0.19% against a basket of reference currencies, while the euro loses 0.21% to 1.1712 dollars.
The pound sterling in turn lost 0.13% against the dollar.
RATE
Yields on German government bonds rose slightly on Wednesday, remaining near their highest levels in several years, as investors expect the ECB to raise interest rates to combat inflation.
The ten-year German Bund yield rose one basis point to 3.1092%, as did the two-year bond, which ended at 2.7185%.
In the United Kingdom, yields fell on Wednesday after having skyrocketed the day before, in a turbulent political context.
In the United States, inflationary fears are driving bond yields higher, with the latest data reinforcing the idea that the Fed will keep rates unchanged in the face of the risk of rising prices.
The yield on ten-year Treasuries increased by 2 basis points to 4.4924%. The two-years show an increase of 1.3 basis points to 4.0085%.
TO BE CONTINUED ON MAY 14:
(Some data may show a slight shift)
(Edited by Diana Mandiá)
par Diana Mandia
