Paris (awp/afp) – World stock markets move on Thursday without a common direction, when the dollar and American yields move at high levels, benefiting from the publication of an inflation indicator and the Trump effect.
Around 2:45 p.m. GMT, the European stock markets were clearly moving in the green: Paris gained 1.23%, Frankfurt 1.34%, London 0.42% and Zurich 0.62%.
On Wall Street, the Dow Jones gained 0.04% while the Nasdaq lost 0.22% and the S&P 500 -0.09%.
The wholesale price index in the United States, which measures inflation on the producer side, accelerated in October, an evolution in line with that of inflation on the consumer side, and which could complicate the equation for the American central bank, the Fed.
Wholesale prices increased by 2.4% year-on-year, compared to 1.9% in September – a figure revised upwards -, according to the Commerce Department.
But “despite a mixed report”, Jason Schenker, analyst at Prestige Economics, believes that it does not call into question “the possibility of a 0.25% reduction in Fed interest rates on December 18” anticipated by the markets.
In the longer term, however, the report could “provide some support (for) bond yields and the dollar”, he continues.
Around 2:45 p.m. GMT, the American currency, after having reached levels not seen for more than a year, appreciated by another 0.07% against the common European currency, to 1.0557 dollars per euro.
Especially since “long-term yields have reached multi-month highs, as fears about future tariffs and a potential re-acceleration of inflation persist” since Donald Trump’s presidential election victory, underlines Jim Reid , economist at Deutsche Bank.
Indeed, US yields are moving at high levels “due to the belief that higher tariffs and lower taxes will stimulate public borrowing and the budget deficit”, underlines Patrick Munnelly, analyst at Tickmill Group.
The yield on ten-year US government bonds, after reaching its highest since July at the start of the afternoon, eased around 2:45 p.m. GMT, reaching 4.43%, compared to 4.45% at Wednesday’s close.
The upcoming return of Donald Trump to the White House has led to a “reassessment (…) of American rates in 2025” by the Fed according to Jim Reid. It could be forced to maintain a more restrictive monetary policy than anticipated to compensate for the Republican candidate’s program seen as more inflationary.
Bitcoin galvanized
The largest cryptocurrency by capitalization was trading at $89,426 around 2:45 p.m. GMT, moderating its gains somewhat after briefly exceeding $93,000 the day before.
“The return of Donald Trump to the White House and the feeling that his administration will be beneficial for cryptoassets helped bitcoin to stabilize (around) $90,000,” underlines Patrick Munnelly.
The president-elect, who will take office in January, has promised to make the United States “the cryptocurrency capital of the world” by drastically easing the regulatory environment. He also mentioned the establishment of a strategic national reserve of bitcoins.
Back to basics for Burberry
The British luxury group Burberry will refocus on its historic products, such as its famous trench coat, in the hope of extricating itself from difficulties, a strategy which seems approved by the market, despite the disastrous results presented on Thursday.
This refocusing was welcomed by investors, with the group’s share price soaring 18.49% around 2:45 p.m. GMT on the London Stock Exchange.
disney dingo
The Disney group published results on Thursday that exceeded expectations for its fourth financial quarter (from the end of June to the end of September), driven by the success of the films “Deadpool & Wolverine” and “Vice-Versa 2”.
Net profit was down 19% to $564 million, reduced by provisions for depreciation and a higher tax charge, according to a press release.
The group’s stock rose 10.25% in New York around 2:45 p.m. GMT.
Oil hesitates
Oil prices hesitated on Thursday, after the publication of several reports showing continued concerns about the Chinese slowdown but also a rise in India as a new relay for demand for black gold.
Around 2:45 p.m. GMT, a barrel of Brent from the North Sea was trading at $72.90 (+0.85%), its American equivalent West Texas Intermediate (WTI) at $69.05 (+0.90%). .
afp/al
