Markets start the week immobile and await US inflation

Markets start the week immobile and await US inflation
Markets start the week immobile and await US inflation

Paris (awp/afp) – World stock markets take a break on Monday in a wait-and-see atmosphere before the publication of indicators on inflation in Europe and the United States during the week.

Wall Street was moving around 3:45 p.m. GMT around its closing levels on Friday: the Nasdaq rose 0.21%, while the S&P 500 (-0.03%) and the Nasdaq (-0.03%) were almost stable.

In Europe, Paris fell by 0.12%, London by 0.22% and Frankfurt by 0.16%. This is their first decline after six consecutive sessions of increase. The flagship indices of these three stock markets reached new records on Friday during the session and at the close.

Milan, close to its highest points since 2008, finished slightly up 0.46%.

These records were reached thanks, in particular, to “the markets’ hope of having rate cuts this year”, underlined Andrea Tuéni, analyst at Saxo Bank.

In Zurich, the SMI gained 0.12%.

Markets are logically taking a break on Monday, but are likely heading into a volatile week as many investors are already eagerly awaiting crucial US and EU Consumer Price Index data. , commented Pierre Veyret, analyst at ActivTrades.

On Tuesday, April producer prices in the United States will provide a first glimpse ahead of the April inflation report, which will be released on Wednesday.

Investors hope to find indications “on the next easing cycles of the Federal Reserve (Fed) and the European Central Bank (ECB), particularly in terms of timing and pace” of possible reductions in key rates, added Pierre Veyret.

“We are almost convinced of a rate cut from the ECB in June, but we need more guarantees from the Fed,” estimates Andrea Tuéni.

Jerome Powell, the president of the American central bank (Fed), is due to speak on Tuesday.

On Monday, Fed Vice Chairman Philip Jefferson said the Fed should keep rates at current levels and continue its “restrictive” monetary policy until real progress is visible in returning l inflation towards the 2% target of the American central bank.

The final data on inflation in the euro zone countries in April will also be published throughout the week, from Portugal on Monday to the entire zone on Friday, including France on Wednesday.

On the bond market, sovereign interest rates are falling slightly. That of the ten-year United States bond stood at 4.48% around 3:45 p.m. GMT, compared to 4.50% at Friday’s close.

BHP rejected by Anglo American ___

The Australian mining giant BHP (-0.57% in London) said it was “disappointed” after the rejection on Monday of a takeover offer raised to 34 billion pounds (nearly 40 billion euros) for its British rival. Anglo American (-2.07% in London).

GameStop restarts the ___ game

The highly volatile shares of video game distributor GameStop, which had fueled a viral frenzy on Wall Street in 2021, are experiencing a new bout of fever: +64.50% on Wall Street.

One of the stock marketers with the nickname Roaring Kitty, who inspired the forced liquidation of short positions on stocks like GameStop and shook Wall Street in early 2021, reappeared on X for the first time in three years with an enigmatic drawing.

Oil in decline ___

Oil prices rose slightly on Monday, driven by new Ukrainian strikes on Russian energy infrastructure.

The barrel of Brent advanced 0.34% to 83.07 dollars and the barrel of American WTI gained 0.72% to 78.82 dollars, around 3:40 p.m. GMT.

The euro gained 0.20% to 1.0793 dollars per euro.

Bitcoin gained 2.81% to $62,991.

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