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The main European stock markets are looking for direction at the opening on Wednesday, with investors reassessing the trajectory of US rates in light of the latest economic data.
In Paris, the CAC 40 fell by 0.08% to 7,483.62 points around 08:03 GMT. The Dax in Frankfurt fell by 0.09%, while the FTSE in London gained 0.15%.
The pan-European FTSEurofirst 300 index gained 0.12%, the EuroStoxx 50 fell 0.02% and the Stoxx 600 gained 0.13%.
The American ISM services indicator, published on Tuesday, surprised the consensus.
“The publication of the ISM Services well above expectations has reignited tensions on American rates and by extension European rates, with the consequence of reduced expectations of rate cuts and a risk premium which is increasing on the long part of the curves “, summarize Natixis strategists.
The latest employment indicators, such as Tuesday’s JOLTS survey, also demonstrate the strength of the labor market, the second mandate of the Federal Reserve.
Investors have in fact revised downward their expectations of a rate cut for the United States, now only betting on a first cut in June and, possibly, in December.
The key rate given for December 2025, 3.94%, is 25 basis points higher than the rate expected a month ago.
In terms of values, Trigano fell 5.6% after warning on Wednesday of the impact of French political uncertainty on its turnover.
Pluxee jumped 8.1% after reporting operational revenue above consensus on Wednesday.
(Written by Corentin Chappron, edited by Blandine Hénault)
