(Paris) The European stock markets ended mixed on Wednesday after two sessions of increase, remaining at a distance from the frenzy of the technology sector on Wall Street, closed for a public holiday.
After two sessions generally in progress, but in the shadow of their fall the previous week, the European indices were less dynamic: Paris dropped 0.77%, Frankfurt 0.35% and Milan 0.29%, while London took 0.17%. The broader European Eurostoxx 600 index ended down 0.17%.
The session took place without many investors due to the closure of the American markets, the day after a new closing record for the NASDAQ and the S&P 500.
The two New York indices were driven by the rise in the shares of Nvidia, an American company which became the world’s largest market capitalization on Tuesday.
“Rare are the investors who still want to take risks,” noted Konstantin Oldenburger, analyst at CMC Market, citing a German Dax “which certainly manages to stay above the 18,000 point mark, but whose all the Attempts to get away from it lead to nothing.
Main indicator published on Wednesday, British inflation slowed to 2% year-on-year in May, therefore reaching the Bank of England’s objective. This figure is in line with analysts’ expectations.
The European Commission also opened the way on Wednesday to procedures for excessive public deficits against seven EU countries, including France, where spending promises are increasing ten days before legislative elections, and Italy.
The news “is not a surprise” for the markets, underline LBPAM analysts.
After a turbulent week marked both by a fall in prices in Paris and a widening of the gap between French and German interest rates, a sign of investor mistrust towards France, the situation is has calmed down a little.
On the bond market, the gap between the French interest rate for the 10-year loan (3.19%) and that of Germany (2.40%) increased slightly compared to Tuesday, but remains a little weaker than Friday.
“For the moment, it has stabilized but it has not returned to previous levels” during the European elections, noted Philippe Cohen, manager at Kiplink Finance.
In Asia, the session was generally in the green thanks to the technology sector.
The French Senate’s commission of inquiry devoted to TotalEnergies (0.47% in Paris) and climate action recommends that the State hold a “specific share” in the group’s capital to have a “right of inspection”, and cease imports of Russian LNG “as soon as possible”, according to its report presented on Wednesday.
The commission justifies this proposal in view of “the evolution of the threats weighing on the energy sovereignty of France and Europe, the evolution of the shareholder structure of TotalEnergies”, very oriented towards the United States. United, “and the need to support a European major in its energy transition efforts”.
Oil loses momentum
Oil prices are weak after mixed initial weekly data on US commercial reserves. A barrel of Brent gained 0.12% to $85.43 and that of American WTI gained 0.07% to $81.63, around 11:55 a.m. (Eastern time).
The euro gained 0.07% to 1.0747 dollars per euro, and the pound gained 0.10% to 1.2722 dollars per pound.
Bitcoin lost 0.13% to $64,804.