Europe gained height at the end of the session to end up in positive territory, from Paris (+ 0.03%) to Frankfurt (+ 0.17%) via Milan (+ 0.44%). London, boosted by corporate results, even gained 0.91%.
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Global stock markets remained strong on Wednesday after the publication of inflation figures in the United States, which accelerated faster than expected, remaining confident in the maintenance of central bank support measures.
Wall Street was slightly lower around 5:25 pm GMT: the Dow Jones lost 0.18%, the Nasdaq 0.63% and the S & P500 0.27%.
On the other hand, Europe gained height at the end of the session to end up in positive territory, from Paris (+ 0.03%) to Frankfurt (+ 0.17%) via Milan (+ 0.44%) . London, boosted by corporate results, even gained 0.91%. In Switzerland, the flagship SMI index gained 0.27% at the close.
Inflation accelerated far more than expected in October in the United States, reaching a record year-on-year level of 6.2%.
Earlier in China, producer and consumer prices for the last month also came out higher than expected.
This high inflation “raises legitimate questions about the evolution of corporate margins … and therefore on fourth quarter profits,” commented in a note Alexandre Baradez, analyst at IG France.
But investors in the equity markets still seem to “follow the Fed’s position”, namely that this inflation is transitory and linked to factors external to monetary policy, in particular supply problems, according to Ilana Azuelos-Bossard, director. Kiplink Finance assistant.
On the bond market, rates rose sharply, even though they were still moving far from their level at the start of the month. The 10-year US took ten basis points (0.10 percentage point) to 1.53%. The German Bund at this expiration was at -0.25%, against -0.33% at the close on Tuesday.
Luxury misguided
Data on inflation in China, which is on the rise, as well as the resurgence of cases of Covid-19 in the country, have disrupted the values of luxury goods, dependent on this market. Investors also kept in mind the evolution of the payment of debts of Chinese real estate giant Evergrande, riddled with debt.
In Paris, Kering fell 2.51% to 664.80 euros, Hermès 0.73% to 1,430 euros and LVMH 1.23% to 698.60 euros.
In Milan, Salvatore Ferragamo fell 4.23% to 19.13 euros, after the publication of his results, citing concerns about China.
The results carry London
British audiovisual group ITV jumped 15.14% to 126 pence, after good quarterly results and higher turnover compared to before the pandemic.
The Marks and Spencer stores finished up 16.48% to 227 pence, after revised forecasts upward.
Restaurant chains are short of people
On Wall Street, investors were struggling to digest the results of the fast food chain Wendy’s (-7.81% to 21.25 dollars), whose margins are under pressure due to the increase in the cost of labor -work and raw materials, but also less frequentation of its establishments.
Attendance problems, especially for the elderly who fear catching Covid-19, also penalized the British pub chain Wetherspoon (-7.24% to 955 pence).
Oil is falling, gold and bitcoin are rising
Commercial crude oil reserves in the United States continued to increase, according to figures released Wednesday by the United States Energy Information Agency (EIA), pushing prices down.
A barrel of North Sea Brent for January delivery lost 1.75% to $ 83.31 around 5:20 pm GMT.
In New York, a barrel of West Texas Intermediate (WTI) for delivery in December dropped 2.42% to 82.11 dollars.
After US inflation, an ounce of gold traded for $ 1,851.72, up 1.09% on the session, topping $ 1,850 for the first time since June.
The volatile bitcoin, which some investors also believe to be a way to hedge against inflation, took 1.24% to $ 68,570, after hitting a new all-time high at $ 68,992.
The euro lost 0.71% against the greenback at 1.1510 dollar.
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