(New York) The world stock markets fell back on Wednesday, being cautious before the publication of the minutes of the last meeting of the American central bank (Fed) which ultimately came as little surprise to Wall Street.
The New York Stock Exchange, closed Monday after half a session and then Tuesday for the American national holiday, concluded in a small decline: the Dow Jones fell by 0.38%, the S&P 500 by 0.20% and the NASDAQ by 0.18%.
In Europe, Paris dropped 0.80%, Frankfurt 0.63%, London 1.03% and Milan 0.59%.
Investors were disappointed with services activity in China, which grew in June, but at one of the slowest paces of the year.
The data “underscores how weak the post-pandemic recovery has become even as trade tensions between Beijing and Washington escalate,” Hargreaves Lansdown analyst Susannah Streeter said.
In the euro zone too, the final estimate of the PMI activity indicator was lower than that initially published, with a decline in services, another sign of a weakening in activity.
The minutes of the US Federal Reserve (Fed) June monetary meeting showed, as expected, that “almost all participants believe that additional rate hikes on the federal funds rate should be in order”.
“The minutes revealed nothing new,” said Peter Cardillo of Spartan Capital. He noted, however, that central bank economists believed a “mild recession” was in the cards for the end of the year.
The next Fed meeting will be July 25-26.
On the bond market, the interest rate of the American loan tightened, rising to 3.93% against 3.86% on Monday as well as the German rate also, at 2.47% against 2.45% on Tuesday.
The German automobile stands up
German auto stocks rose, with figures released by the Federal Automobile Agency showing sales rose 12.8% in the first half year on year. The market is relieved by a return to normal on the supply chains, even if the outlook for sales is uncertain.
Continental finished first in Dax (+3.39%), followed in particular by Mercedes-Benz (+1.13%), BMW (+0.52%). Volkswagen advanced 0.08%.
In Paris, Renault took 2.63%, Valéo 2.26%.
In the United States, the automotive giant General Motors (GM) concluded up 1.16% after announcing a 19% jump in car sales in the second quarter.
Moderna is getting closer to China
Vaccine maker Moderna climbed 1.49% on Wall Street. The American laboratory has signed a memorandum of understanding with China to produce drugs there for the Chinese market, he announced on Wednesday. The investment could amount to a billion dollars, according to a Chinese media.
Asked by AFP, Moderna – which has developed one of the very first messenger RNA vaccines against COVID-19 – did not confirm the amount of the investment. He said, however, that a memorandum of understanding had indeed been signed.
Rise in oil prices
Oil prices have risen, prompted by proactive statements from Saudi Arabia, determined to support crude oil prices even if it means losing revenue.
The price of a barrel of Brent North Sea oil for September delivery gained 0.52% to close at $76.65.
As for the barrel of American West Texas Intermediate (WTI), with maturity in August, it jumped 2.82% to 71.79 dollars.
The euro fell 0.21% to 1.0856 dollars around 4 p.m. (Eastern time).
Bitcoin dropped 1.10% to $30,469.