New York (awp/afp) – Western stock markets fell on Thursday after noting that inflation was slowing less than expected in the United States, questioning investors about the continuation of rate cuts by the American Federal Reserve (Fed).
On Wall Street, the Dow Jones dropped 0.14%, the Nasdaq index 0.05% and the broader S&P 500 index, 0.21%.
In Europe, Paris ended down 0.24%, Frankfurt 0.23% and London around its balance (-0.07%). In Zurich, the SMI lost 0.37%.
According to the CPI consumer price index, inflation decelerated to 2.4% in September, compared to 2.5% the previous month, but it is higher than the 2.3% that analysts projected.
The basic index, excluding food and energy, stands at 3.3%, compared to only 3.2% in August.
“Several categories (of goods and services) have gone up, so it’s a little uncomfortable for the Fed (American central bank),” commented Tom Cahill, of Ventura Wealth Management.
At the same time, new jobless claims climbed last week to their highest level in 14 months.
“If inflation data continues to indicate that prices are rising and the job market is slowing, the Fed’s next meeting should provide a lively discussion over which of the two goals should take precedence,” warns Quincy Krosby of LPL Financial.
The mission assigned to the American central bank is thus to maintain inflation at a moderate level but also to promote full employment.
“If interest rate cuts are still planned, the scale and frequency of these adjustments could be revised downwards, in particular (…) next year,” summarizes Florian Ielpo, head of research macroeconomic for Lombard Odier IM.
In this context, the ten-year American bond reached 4.06%, compared to 4.07% the day before at closing.
In Europe, it is “France’s budget for 2025”, presented in the evening, which will be scrutinized by investors, according to Jim Reid, economist at Deutsche Bank.
In this context, the interest rate on 10-year French State loans stood at 3.02%, when the Spanish equivalent is 2.98%.
Concretely, this means that France must borrow at a higher rate than its Spanish neighbor to finance itself on the markets.
The German benchmark rate reaches 2.25%.
AMD not enthusiastic enough ___
Semiconductor designer AMD fell (-4.00%) after the presentation of new chips, intended to compete in particular with Blackwell, the latest from its competitor Nvidia.
Although general manager Lisa Su reported demand that “(continued) to take off and (exceeded) forecasts”, the speakers pouted, judging them less enthusiastic than those of the boss of Nvidia (+1, 63%), Jensen Huang, a few days earlier.
Reinsurers reassured ___
The securities of European reinsurers were sought after on Thursday, benefiting from the weakening of Hurricane Milton on the west coast of Florida. Investors are also counting on the fact that the damage will soon be taken into account when premiums are renewed.
The Germans Munich Re (+2.85%) and Hanover Re (+2.75%) experienced clear increases. In Switzerland, Swiss Re gained 2.75% while the French Scor gained 2.80% in Paris.
Oil on the rise ___
Oil prices rose as operators feared a possible Israeli response against oil installations in Iran, while assessing the impact of Hurricane Milton passing through Florida.
The price of a barrel of Brent from the North Sea for delivery in December rose 3.68%, to $79.40.
A barrel of American West Texas Intermediate (WTI) due in November gained 3.56%, to $75.85.
Bitcoin fell below the threshold of $60,000, to $59,730 (-1.10%).
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