Paris (awp/afp) – Global stock markets are generally doing well on Friday, following inflation figures in line with those in the United States, but the Paris Stock Exchange has suffered again two days before the first round of legislative elections in France.
Wall Street opened in the green, heading towards an upward week: the Dow Jones gained 0.17%, the S&P 500 0.27% and the Nasdaq 0.29% around 4:00 p.m. GMT, the last two indices trying to beat once again their record this year at the close.
Inflation slowed as expected in May in the United States, to 2.6% over a 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 that month were slightly better than expected in France and in line with economists’ expectations for Spain.
Data for June in Germany are due on Monday and Tuesday for the eurozone.
But investors will probably be more focused on the first round of France’s legislative elections, which take 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 increasing from this session: the CAC 40 finished at its lowest level since January 25 at the end of its worst month in two years (-6.42%)
It fell by 0.68% on Friday, while London only lost 0.19% and Frankfurt gained 0.14%. In Zurich, the SMI lost 0.09%.
In terms of rates, 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 French 10-year bond rate reached its highest level since November, and was moving at 3:35 p.m. GMT towards 3.29%, well above the German rate (2.48%), which is the benchmark in Europe.
Nike stumbles ___
American sports equipment manufacturer Nike reported a lower-than-expected revenue on Thursday, marked in particular by a decline in its online sales, and lowered its targets for the entire current financial year.
In New York, the stock fell 19% and in Europe dragged JDSports (-4.23%) and Puma (-1.98%).
Oil is progressing ___
Oil prices were hesitant on Friday, but remained up around 1% over the week as a whole.
At around 15:25 GMT, the price of a barrel of North Sea Brent crude for delivery in August, the last day of trading, was up 0.08% at $86.46. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in the same month, was down 0.28% at $81.51.
On the foreign exchange market, the single European currency advanced 0.12% against the greenback, to 1.0717 dollars.
Bitcoin fell 0.85% to $61,900.
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