Wall Street stocks attempted to rebound on Thursday despite data showing further price pressure in the US, but even the ECB's hint at a possible June interest rate cut failed to lift eurozone stocks outright. Ta.
The European Central Bank kept interest rates unchanged as expected, but said slowing inflation could open the door to monetary easing, raising hopes for a first rate cut in June.
This contributed to the rise in euro area stock prices, and although Frankfurt remained in the red, Paris stock prices moved into positive territory. Stock prices also rose in Amsterdam and Brussels, but fell in Madrid and Milan.
The ECB has updated its guidance, saying a rate cut would be appropriate if euro zone inflation continues to fall towards its 2.0% target. The next inflation forecast update is scheduled for the June meeting.
“The ECB's decision to update its guidance suggests that a rate cut is very likely at its next June meeting,” said Jack Allen Reynolds, deputy chief euro area economist at Capital Economics. Ta.
Wall Street's major indexes opened higher last month despite data showing U.S. wholesale prices rose at the highest annual rate in nearly a year.
“The key takeaway from the report is that year-on-year growth in PPI (producer price index) and core PPI has accelerated, although the month-on-month increase was smaller than expected,” Patrick O'Hare said in a briefing. That means I did it.” .com.
The rise in wholesale prices is likely to weigh on the Fed, which has been hit hard by higher inflation rates, which has been highly successful in combating price increases through interest rate hikes. .
Wall Street's main indexes on Wednesday were hit by better-than-expected March consumer inflation data, hurting hopes for a June interest rate cut. That forced traders to reassess the Fed's outlook for monetary policy, warning that its next move could even be to raise rates.
U.S. data on Wednesday showed the consumer price index (CPI) rose 0.4% month-on-month and 3.5% year-on-year, both above consensus for the third straight month, with observers calling the rise worrying. He warned that this may indicate a trend that should be followed.
And other data suggests the world's No. 1 economy remains in terrible health, even though borrowing costs are at 20-year highs and inflation is well above target (recently We also received employment statistics that shattered predictions.
The results will give Fed officials more thought ahead of their May policy meeting, with recent guidance to cut interest rates three times this year now in doubt.
Meanwhile, the dollar rose to 153.29 yen, its highest level since 1990, on the back of the US CPI statistics. Tokyo authorities said they would keep options open regarding support for the troops.
Although global oil prices fell, losses were limited by rising tensions in the oil-rich Middle East region, with Brent crude oil futures hovering above $90 per barrel.
– Main figures around 1330 GMT –
New York – Dow: up 0.1% to 38,516.60 points
New York – S&P 500: up 0.2% to 5,171.97
New York-Nasdaq Composite: up 0.4% to 16,233.62
London – FTSE 100: down 0.1% to 7,949.79
Paris – CAC 40: 8,062.87, up 0.2%
Frankfurt – DAX: down 0.3% to 18,039.05
Euro STOXX 50: down 0.2% to 4,990.75
Tokyo – Nikkei Stock Average: down 0.4% to 39,442.63 (closing price)
Hong Kong Hang Seng Index: 0.3% lower at 17,095.03 (closing price)
Shanghai – Overall: up 0.2% to 3,034.25 (closing price)
Dollar/JPY: down to 152.94 yen from Wednesday's 152.96 yen
EUR/USD: rose from $1.0747 to $1.0756
GBP/USD: up from $1.2543 to $1.2575
EUR/GBP: down from 85.67p to 85.52p
Brent crude oil: down 0.5% to $90.07 per barrel
West Texas Intermediate: down 0.6% to $85.71 per barrel
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