Paris (awp/afp) – World stock markets rose on Friday, following inflation figures in line with expectations in Europe and the United States, but the Paris Stock Exchange weakened two days before the first round of legislative elections in France.
Wall Street opened in the green, heading for an upward week: the Dow Jones gained 0.45%, the S&P 500 0.29% and the Nasdaq 0.18% around 1:40 p.m. GMT.
Inflation slowed as expected in May in the United States, to 2.6% over one year, after 2.7% in April, according to the PCE index, favored by the American central bank (Fed).
These data reassure investors in their hope that the American Central Bank will decide to lower its key rates from the start of the school year, because it is finally satisfied with the trajectory of prices.
“We know that the Fed needs several good reports in a row, but the situation is becoming increasingly favourable for a first rate cut,” said Christophe Boucher, chief investment officer of ABN Amro IS.
In Europe, the European Central Bank already made this choice in June, and inflation data for this month was slightly better than expected in France and in line with economists’ expectations for Spain.
Data for June in Germany are expected on Monday, and for the eurozone on Tuesday.
But investors will undoubtedly be more focused on the first round of legislative elections in France, which takes place on Sunday and could see a clear victory for the far-right National Rally party, according to the latest polls.
Signs of tension are multiplying from this session: the CAC 40 hit its lowest level in session since January, and is heading for its worst month in two years. It fell by 0.69%, while London gained 0.31% and Frankfurt 0.28%. In Zurich, the SMI lost 0.06%.
On the rate side, the gap between the cost of borrowing for France and that of Germany has never been so high since 2012, exceeding the peak reached a few days after the dissolution of the National Assembly.
The rate on the French 10-year loan reached its highest level since November, and was at 1:30 p.m. GMT at around 3.29%, well above the German rate (2.44%), which is the benchmark in Europe.
Trump’s business jumps ___
Donald Trump’s media group, Trump Media and Technology Group, jumped more than 5% in early trading. The Republican candidate largely succeeded in containing the tone of his attacks and remained disciplined, while Joe Biden failed to reassure him about his form and his ability to carry out a new mandate.
Nike stumbles ___
The American sports equipment manufacturer Nike published, on Thursday, a turnover that was down and below expectations, marked in particular by the decline in its online sales, and lowered its objectives for its entire current financial year.
In New York, the stock fell 17% and dragged down JDSport (-4.95%) and Puma (-2.95%) in Europe.
Oil advances ___
Oil prices were moving in the green, driven by rising geopolitical tensions, as well as the prospect of a slowdown in American inflation.
At around 13:20 GMT, the price of a barrel of North Sea Brent crude for delivery in August, the last day of trading, rose by 0.21% to $86.57. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in the same month, rose by 0.21% to $81.92.
On the foreign exchange market, the single European currency fell by 0.06% against the greenback, to 1.0697 dollars.
Bitcoin was stable (-0.03%) at $61,400.
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