Frankfurt rose by 1.23%, Milan by 0.95%, Paris by 0.52% and London by 0.25%. In Zurich, the SMI grabs 0.20%.
World stock markets rebounded on Wednesday after the announcement of a slowdown in US inflation in July, thanks in particular to the drop in gasoline prices, investors anticipating a softening of the policy of raising the key rates of the US Central Bank ( fed).
In New York, the stock market rose, celebrating the slowdown in US inflation. Around 4:00 p.m. GMT, the Dow Jones took 1.58%, the broader S&P 500 index 2.01% and the Nasdaq, with strong technological coloring, 2.66%.
The day before, the indices of Wall Street had been weighed down by the pessimistic warnings of the manufacturers of semiconductors.
European stock markets closed higher, but more modestly. Frankfurt gained 1.23%, Milan 0.95%, Paris 0.52% and London 0.25%. In Zurich, the SMI gained 0.20%.
Inflation slowed more than expected in July in the United States – thanks in particular to the fall in the price of gasoline at the pump – but remains at a very high level.
Consumer prices rose 8.5% year on year, according to the Consumer Price Index (CPI) released Wednesday by the Labor Department. Over one month, inflation was even zero, which means that prices did not, against all expectations, increase compared to June.
“The markets are heaving a sigh of relief”, observes Pierre Bismuth, managing director of Myria AM, who nevertheless underlines that “everything is good to take in August for the markets, especially to get out of the red zone” where most stock indexes since January 1.
Core inflation, which excludes particularly volatile food and energy prices, also slowed to 5.9% over one year, while the markets were expecting it to rise (+6.1 % according to Factset).
“The estimated probability of a 75 basis point Fed rate hike in September has literally collapsed,” said Joschen Stanzl of CMC Markets.
Pierre Bismuth does not, however, say he is “certain that the Fed is accommodating” in view of these figures which, in the middle of summer, can be considered insufficient to indicate a firm trend.
“The Fed may want to give itself room to maneuver in September by hitting hard” with a 75 basis point hike before the midterm elections in November, encouraged by “the robustness of the American economy” and inflation which remains high.
Bond markets were particularly reacting to the news. The US two-year yield fell to 3.154%, from 3.26% at the close on Tuesday, as investors aligned themselves with the assumption of a more moderate rate hike from the Fed.
The spread between the ten-year rate and the two-year rate narrowed, still in favor of the second, marking a decline in concerns about a possible recession.
On the side of oil and currencies
Oil prices lost ground on Wednesday, weighed down by a possible return of Iranian crude to the market with the negotiation of the nuclear agreement, but also by fears of a recession which threaten demand.
Around 4:00 p.m. GMT, a barrel of Brent from the North Sea for delivery in October fell 0.39% to 95.93 dollars. That of West Texas Intermediate (WTI) US for delivery in September yielded 0.21% to 90.34 dollars.
The dollar unscrewed Wednesday against other currencies after the publication of figures on US inflation.
Around 4:00 p.m. GMT, the euro gained 1.18% against the greenback, at 1.0334 dollars.
Bitcoin climbed 3.78% to $24,028.
Tech heals its wounds
After two difficult sessions for “tech”, weighted down by the semiconductor sector, several titles were picking up steam, driven by announcements perceived positively by the markets.
Anxious to secure his back in his legal battle with the uncertain outcome concerning the takeover of Twitter, Elon Musk sold in early August for nearly 7 billion dollars of shares in his Tesla automobile group. The Tesla action took 2.10% and that of Twitter 3.48% around 4:00 p.m. GMT.
The price of Meta (Facebook) gained 5.62%.
British insurers reassured
The insurers Admiral (+12.63%) and Aviva (+12.21%) were at the party in London, after the publication of half-yearly results which reassured investors, who were recently worried about the impact of inflation on the area.