New York (awp / afp) – Stock markets on Wednesday greeted US inflation figures with caution, which confirmed the sustained pace of price hikes, but also the Fed’s plans to decrease support monetary from November.
Also focused on corporate results, Wall Street generally concluded in the green: the flagship Dow Jones index remained in equilibrium, the extended S & P500 index rose by 0.30% and the technology-colored index Nasdaq gained 0.73%.
In Europe, where prices were driven by the first quarterly results of companies, the trend did not vary greatly with the publication of the American figure: Frankfurt finished up 0.68%, Paris 0.75% and London 0.16%. In Zurich, the SMI gained 0.49%.
Inflation in the United States stood at 5.4% yoy in September, with prices rising 0.4% yoy, slightly more than analysts expected (+ 0.3%) .
In addition, the Central Bank released the minutes (the “minutes”) of its last meeting, which shows that it is ready to decrease its asset purchases in mid-November or mid-December. Members of the Monetary Committee expect to complete these liquidity injections by the middle of next year.
For Peter Cardillo of Spartan Capital Securities, the reduction in monetary support “is actually a good thing for the market”: “It shows that the economy is strong enough to work on its own and it lessens the prospect of high inflation. . “
On the bond market, rates eased, like the US 10-year, which was moving around 1.53%, far from the peak of 1.63% in session the day before.
LVMH in confidence, luxury follows ___
The title of world number one luxury LVMH climbed 3.48% to 653.90 euros, after the announcement of sales of 15.5 billion euros in the third quarter, a figure higher than that of 2019, before the pandemic. The group is “confident in the pursuit of current growth” and is sharing it with other players in the sector. Kering took 1.50% to 644.30 euros and Hermès 2.71% to 1,268 euros.
Financials in difficulty ___
The fall in sovereign rates penalized financial stocks on both sides of the Atlantic.
In the United States, JPMorgan Chase lost 2.38% to 161.43 dollars, its better-than-expected results published Wednesday having also been made possible by a reduction in its credit reserves.
In Paris, BNP Paribas sold 1.45% to 56.36 euros. In London, banks suffered from the move, with Barclays losing 2.30% to 192.92 pence, Lloyds Banking Group falling 1.58% to 47.76 pence, HSBC falling 1.04% to 424.55 pence and NatWest ending down 0.65% to 228.30 pence.
Only the world’s leading asset manager, BlackRock, was going against the grain with better-than-expected quarterly results, boosted by higher commissions from financial market transactions. Its title jumped 3.78% to 867.81 dollars.
Oil settles ___
Oil prices stayed away from their last highs reached two days earlier on Wednesday, weighed down by a downward revision of demand this year by OPEC.
The price of a barrel of North Sea Brent for December delivery fell 0.28%, or 24 cents, to $ 83.18.
In New York, a barrel of West Texas Intermediate (WTI) for the month of November lost 0.24% or 20 cents, to 80.44 dollars.
On the euro and bitcoin side ___
The euro regained some ground (+ 0.56% to 1.1594 dollars) against the greenback, while remaining close to its highest since July 2020.
In the wake of a ride that saw it take over 40% in ten days, bitcoin climbed 3.01% to $ 57,026.