(New York) World stock markets slowed Thursday after the jump recorded in the wake of the speech of the president of the American central bank the day before, while bond rates and the dollar fell back.
European stock markets closed divided after a first part of the session in the green. Paris gained 0.23%, Frankfurt 0.35%, Milan 0.31%, while London lost 0.19%, weighed down by the mining and oil sectors which are suffering from the rise in the pound.
Wall Street concluded in dispersed order after jumping the day before. The Dow Jones index lost 0.56%, the NASDAQ advanced 0.13% and the S&P 500 remained close to balance (-0.09%).
Market sentiment had been bolstered by statements by the Fed Chairman on the possibility of a reduction in the pace of rate hikes in December.
For investors, the scenario of a rate hike of 50 basis points (half a percentage point), compared to 75 basis points during the four previous hikes, is confirmed.
On the bond market, the interest rates of European states have fallen.
The yield on US 10-year debt fell to 3.51%, its lowest level in more than two months.
The dollar was penalized by the idea of a probable slowdown in the increases in its key rates.
Shortly before 5 p.m., the greenback dropped 1.10% against the single currency, at 1.0524 dollars for one euro. It briefly dipped to its lowest level in five months, at $1.0533.
On Wall Street, investors were torn between the good news of the confirmed slowdown in inflation for October and less good news evoking a contraction in manufacturing activity in November in the United States.
Consumer price inflation slowed in October to 6.0% year on year from 6.3% in September, according to the PCE index favored by the Fed.
These numbers are still well above the Fed’s 2% target.
But “concerns about weak economic data seen today” dampened market sentiment, noted CMC Markets analyst Michael Hewson.
General activity in the US manufacturing industry contracted in November, a first since May 2020, at the height of the COVID-19 pandemic, according to the index of the professional federation ISM.
“The industry is clearly struggling with rising borrowing costs,” said Kieran Clancy, chief U.S. economist at Pantheon, in a note.
European techno breathes
Technology stocks, which are particularly sensitive to interest rates and therefore to the monetary course of the Fed, were sought after in Europe.
HelloFresh jumped 5.95% in Frankfurt, in London Deliveroo gained 6.81%, Darktrace 4.34% and in Paris Dassault Systèmes rose 4.52% and Capgemini 4.44%.
By contrast in New York, Dow Jones member Salesforce fell 8.27% to $147 after some of its business operations reported lower-than-expected revenue.
The software company has announced that Bret Taylor will step down as vice president and co-chief executive.
Volkswagen in Canada
Volkswagen rose 0.49% after announcing that it had chosen Canada as the location of the future giant electric battery factory of its specialized subsidiary Powerco.
On the side of oil and bitcoin
Oil prices ended on a mixed note Thursday, in the grip of the suspense surrounding the decision, expected Sunday, of the Organization of the Petroleum Exporting Countries (OPEC) on its production.
The price of a barrel of Brent from the North Sea for delivery in February, which was the first day of use as a benchmark contract, eroded by 0.10%, to close at 86.88 dollars.
As for the barrel of American West Texas Intermediate (WTI), with maturity in January, it gained 0.83%, to 81.22 dollars.
On the cryptocurrency side, bitcoin fell 1% to $16,933.