Paris (awp/afp) – European stock markets rose for the fourth consecutive session on Wednesday and are trying to make up for their significant losses of last week, but the publication of inflation in the United States could call into question the trend.
In Europe, Paris gained 0.74% around 10:35 GMT, Frankfurt 0.86%, London 1.13% and Milan 1.00%. Zurich took 0.39%.
Wall Street was heading for a slightly higher open according to the futures, between +0.1% and +0.2% for the three main indices.
But the trend remains precarious before the publication of the consumer price index (CPI) in the United States for June. The indicator will be published at 12:30 GMT (2:30 p.m. in Paris), and is expected +3.1% over twelve months against 4% in May, a significant slowdown.
If this slowdown were verified, it would “boost hopes that the Federal Reserve’s current monetary tightening campaign will end soon. Investors already believe this rumor, with an increased appetite for riskier assets in Europe. and in the United States” this week, according to Pierre Veyret, an analyst at Activ Trade.
If the markets anticipate that the Fed will raise its key rate by a quarter of a point at the end of its next meeting on July 26, after a break in June, they are undecided on what the American monetary institution will do next.
Investors will also watch the trend in underlying inflation, which excludes the more volatile food and energy prices, and whose persistence worries them.
In Japan, speculation about a possible monetary policy adjustment by the Bank of Japan (BoJ) also stirred the market. The Tokyo Stock Exchange, with many export-oriented companies, fell 0.81%, falling below 32,000 points for the first time in more than a month, penalized by the rise of the yen.
The Central Bank of Japan has so far maintained an ultra-accommodative monetary policy, unlike the major Western central banks, which has considerably weakened the Japanese currency against the dollar and the euro since last year.
Around 0730 GMT, the dollar weakened to 139.63 yen (-0.52%).
Infineon and beyond
The European semiconductor sector benefited greatly from a positive assessment by Jefferies in a note.
Infineon took 3.17% in Frankfurt, STMicroelectronics 3.88% and Soitec 5.17% in Paris, ASM International 4.40% in Amsterdam.
Swiss Re finds its boss
The Swiss reinsurer Swiss Re announced on Wednesday that it had proposed to entrust the post of president to Jacques de Vaucleroy, who has been acting since the departure at the end of April of his predecessor Sergio Ermotti, who left to take over the management of UBS.
On the stock market, the action gained 0.96%.
On the oil side
Oil prices stabilized without crossing the symbolic threshold of 80 dollars per barrel for Brent, the market focusing on the reduced supply before inflation in the United States.
Prices have “increased by more than 10% in the past two weeks,” say Deutsche Bank analysts. On Tuesday, Brent finished at its highest closing since the end of April, and WTI for more than two months.
Around 10:25 GMT, the price of a barrel of Brent from the North Sea for delivery in September took 0.05% to 79.44 dollars and its American equivalent, the West Texas Intermediate (WTI), with maturity in August, 0.15 % at $74.94.
Bitcoin gained 0.38% to $30,700.
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2023-07-12 10:55:03
#European #stock #markets #recover #ahead #inflation
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