* In Europe, the CAC 40 lost 0.51% and the Stoxx 600 0.08%
* Wall Street dans le rouge à mi-séance, pénalisée par la tech
* Running out of patience, Trump threatens Tehran again
* Oil climbs more than 3%, close to 100 dollars
by Claude Chendjou
The European stock markets ended a new session marked by strong volatility in a dispersed order against a backdrop of renewed tensions in the Middle East and while awaiting monetary policy decisions from the European Central Bank (ECB).
In Paris, the CAC 40 .FCHI ended with a loss of 0.51% to 8,161.83 points. The British Footsie .FTSE gained 0.27%, standing out thanks to energy values. The German Dax .GDAXI fell 0.88%.
The EuroStoxx 50 index .STOXX50E lost 0.66%, the FTSEurofirst 300
.FTEU3 nibbled 0.03% and the Stoxx 600 .STOXX lost 0.08%.
At the close in Europe, the Dow Jones .DJI fell by 1.14%, the Standard & Poor’s 500 .SPX by 0.83% and the Nasdaq .IXIC by 1.06%, the major American indices being weighed down by the new technologies compartment
.SPLRCT (-1.20%) and that of semiconductors .SOX (-2.05%).
The VIX .VIX volatility index on Wall Street, a barometer of fear, climbed in session to a peak since April 7, while in Europe it exceeded the threshold of 20 points on the EuroStoxx 50 .V2TX.
American President Donald Trump, who has continued to alternate threats and optimistic predictions since the start of the war against Iran on February 28, declared on Wednesday that Tehran would “pay the price” for its alleged procrastination in negotiations for an agreement of peace.
Investors are awaiting announcements on Thursday from the ECB, which is expected to raise its key rates by 25 basis points, without knowing the continuation of its policy for the rest of the year.
In Canada, the BoC, as expected, maintained its main key rate at the current level on Wednesday and clarified that it saw few signs of generalized inflation, while adding that it was ready to raise its borrowing costs if necessary.
In the United States, inflation, as expected, decelerated in May over one month to 0.5%, but on an annual basis, it accelerated to 4.2%, the largest increase since April 2023.
For Steve Kolano, director of investments at Integrated Partners, the report on consumer prices in the United States “does nothing to reduce the likelihood of a possible rate hike at some point this year”, given high energy prices and the conflict with Iran.
In this context, oil prices have started to rise again and bond yields in Europe have tightened.
VALUES IN EUROPE
Renault RENA.PA fell 1.58% despite the automaker’s announcement of a jump in orders for electric cars since the war in Iran. The automobile sector .SXAP on the Stoxx 600 fell by 1.02%, with the decline in industrial stocks.
Sanofi SASY.PA fell 1.33% after announcing the end of the phase 3 “MOBILIZE” study of riliprubart, tested in patients with chronic inflammatory demyelinating polyneuropathy (CIDP).
Soitec SOIT.PA plunged 10.56%, Jefferies having lowered its recommendation on the group, judging the stock overvalued.
Volvo Group VOLVb.ST lost 3.73% after unveiling its outlook at an investor event.
WH Smith SMWH.L fell by 16.15% after issuing a new warning on its results and announcing a capital increase.
Commerzbank CBKG.DE fell by 2.03% after expressing new concerns in the context of the UniCredit CRDI.MI offer (-1.35%).
TODAY’S INDICATORS
Producer prices in China increased in May for a third consecutive month, by 3.9% year-on-year after an increase of 2.8% in April, reaching their highest since July 2022, according to official data.
CHANGES
The dollar fell by 0.01% against a basket of reference currencies .DXY, thus practically standing still after the publication of American inflation figures.
“Underlying inflation escaped a widely feared acceleration last month, suggesting that surging energy prices are not fueling – for now – the core index watched by the Reserve federal government,” explains Karl Schamotta, chief market strategist at Corpay.
The euro EUR= gains 0.03%, to 1.1547 dollars, while the pound sterling
GBP=
s’échange à 1,3386 dollar (+0,07%).
RATE
The yield on ten-year US Treasury bills US10YT=RR is stable at 4.530% after falling slightly during the session following the release of data showing that underlying consumer price inflation slowed more than expected last month. However, investors also kept a close eye on the worsening tensions with Iran.
The ten-year German Bund yield DE10YT=RR ended up 1.2 basis points, at 3.068%, while the two-year DE2YT=RR rose 2.5 basis points, to 2.704%.
PATROL
The oil market rises on Wednesday, Donald Trump having once again threatened Iran with bombings.
Brent rose by 3.02% to $94.21 per barrel LCOc1 and American light crude (West Texas Intermediate, WTI) by 3.61% to $91.38 CLc1.
TO BE CONTINUED THURSDAY: nL8N42D13E
THE SITUATION ON THE MARKETS
(Some data may show a slight shift)
(Written by Claude Chendjou, edited by Sophie Louet)
|1|Stocks to follow on the Paris Stock Exchange and in Europe WATCH/LFR |1|
