As inflationary pressure persists in the United States, global markets are adjusting their expectations. Central banks and upcoming financial results will be decisive for the coming weeks.
The New York Stock Exchange ended slightly lower yesterday, held back by higher-than-expected inflation data. This climate of uncertainty has extended to European and Asian markets, where investors remain cautious about the global economic outlook. Attention is now focused on upcoming central bank meetings and company results, which could influence future stock market trends.
Slight decline on Wall Street due to inflation
US indexes closed lower on Thursday as the latest inflation data showed consumer prices rising higher than analysts expected. The Dow Jones lost 0.14%, the Nasdaq lost 0.05%, and the S&P 500 fell 0.21%.
The inflation figure, measured by the CPI index, showed an increase of 0.2% over one month, reaching 2.4% over the year. These results cooled investors, who were hoping for a more marked deceleration, fueling fears about the next decisions of the Federal Reserve (Fed).
In addition to inflation, new jobless claims in the United States reached their highest level in 14 months, a data which adds to the uncertainty regarding the American economy. Analysts are now wondering about the trajectory of the Fed’s interest rates, torn between managing inflation and supporting employment.
Dispersed Asian markets
Asian stock markets opened in disorganized order on Friday, influenced by the decline on Wall Street. Hong Kong’s Hang Seng Index rose 2.98%, while the Shanghai Composite lost 0.50%. In Tokyo, caution also prevailed, although the Nikkei index rose slightly by 0.29%.
Asian investors remain cautious, particularly in China where the economy is showing signs of slowing. Hopes are now focused on possible announcements of fiscal stimulus at the next conference of the Chinese Ministry of Finance, scheduled for this weekend.
The Chinese Central Bank has already injected liquidity to support activity, but markets are awaiting additional measures to restore momentum to the economy.
Caution on European markets
In Europe, the stock markets opened close to equilibrium after the inflation announcements in the United States. In Paris, the CAC 40 lost 0.34%, while the London Stock Exchange fell by 0.07%.
European investors are awaiting the results of large American companies according to Les Echos, in particular the banks JPMorgan and Wells Fargo, which are due to publish their quarterly results this Friday.
Inflation also remains a concern in Europe, where recent figures show a trend towards disinflation. In Germany, the consumer price index increased by 1.6% year-on-year in September, supported by a drop in energy prices. These data reinforce expectations of a further cut in interest rates by the European Central Bank (ECB) in the coming months.
