Paris ends up not far from balance (+0.13%), as do Frankfurt (+0.06%) and Milan (+0.02%). London for its part gave up 0.37%. In Zurich, the SMI nibbles 0.07%.
The markets are divided on Thursday, with “tech” driven by the good results of chip giant Nvidia, and other sectors held back by a poorly received indicator of American activity.
European stock markets started the session higher, but turned around after the publication of the PMI activity index in the United States. Paris finished not far from balance (+0.13%), as did Frankfurt (+0.06%) and Milan (+0.02%). London, for its part, lost 0.37%. In Zurich, the SMI increased by 0.07%.
On Wall Street, the Nasdaq technology index rose 0.85% around 3:50 p.m. GMT, thanks to the jump from chip giant Nvidia. The S&P 500 was also a little driven by “tech” (+0.30%), on the other hand, the Dow Jones dropped 0.60%.
Growth in private sector activity in the United States in May was more sustained than expected by analysts.
“Activity in the United States is very strong, at its highest in two years,” observes Valérie Rizk, economist at Hugau Gestion.
The interest rates on United States loans rose in response (4.48% around 3:50 p.m. GMT, compared to 4.42% on Wednesday for the ten-year maturity) because the dynamism of American economic activity could push the bank American central (Fed) not to reduce its key rates as soon as expected by the markets.
CME Group data shows that markets are now counting on a first Fed rate cut in November, and no longer in September as previously expected, reports Ms. Rizk.
“As yesterday’s Fed minutes (the minutes of the last meeting) confirmed, the central bank has no reason to rush,” said Christophe Boucher, investment director at ABN AMRO Investment Solutions .
Since the start of the year, markets have examined all macroeconomic indicators through the prism of central bank rate cut expectations.
But given the economic upheavals since the Covid-19 crisis and the uncertainty linked to geopolitics, the economic situation is currently very difficult to predict and “investors tend to over-react to each new key data”, explains Ms. Rizk.
In Europe, growth in private sector activity accelerated in the euro zone in May while prices charged by businesses slowed, according to S&P Global’s Flash PMI. The figure came out slightly higher than analysts’ expectations.
Christophe Boucher sees this as “additional proof of the economic rebound of the euro zone” even if “the manufacturing industry remains lagging behind”.
Nvidia jumps
Nvidia once again exceeded expectations for the first quarter of its staggered financial year, confirming that the momentum given by generative artificial intelligence (AI) cannot be denied.
Its net profit increased more than sevenfold over one year to reach $14.9 billion.
Nvidia shares climbed 10.55% and its market capitalization now exceeds $2.5 trillion, almost as much as the value of all CAC 40 member companies.
This trend benefited the entire semiconductor sector: Broadcom rose 1.27%, Micron 2.61% and TSMC 1.59% in New York.
In Europe, ASML gained 2.61%, Infineon 0.95%, STMicroelectronics 0.18%.
Royal Mail will deliver late
International Distributions Services (IDS), parent company of the British postal operator Royal Mail, which Czech billionaire Daniel Kretinsky wants to buy, announced that it would not be able to publish its results on Thursday as planned, citing a delay in the audit of his accounts. Its action lost 3.91% in London.
Another company that interests Daniel Kretinsky, the steel giant in crisis Thyssenkrupp (+0.58%) saw thousands of employees demonstrate on Thursday to demand to know more about the “industrial concept” behind the entry into the capital of the Czech billionaire.
Oil falling
Oil prices fell around 3:50 p.m. GMT. A barrel of Brent lost 0.59% to $81.42 and that of American WTI lost 0.49% to $77.19.
The euro was stable (+0.03%) against the dollar at 1.0827 dollars per euro.
Bitcoin lost 2.05% to $67,984.
