European markets were struggling to move forward on Wednesday mid-session, still concerned about a return to US inflation, exemplified by the general rise in interest rates in the bond markets.
On Wall Street, around 7:15 am, the S&P 500 futures were steady at 3,927 points, as was the case for the Dow Jones Index at 31,462. The Nasdaq lost 22 points, down 0.16% to 13,745 points.
In Europe, most of the markets recorded slight declines, except for France, in the middle of the session. in London , FTSE 100 Index It lost 13 points, down 0.2% to 6,735 points. In Paris , CAC 40 It remained in the balance at 5,786 points. In Frankfurt, Dax It decreased 79 points, or 0.56%, to 13,984 points.
In Asia, the main Japanese indices fell at the close while the index fell Hang Seng In Hong Kong it acquired 1.10%.
Chinese stock exchanges remain closed for the New Year holidays.
ActivTrades analyst Pierre Ferrett notes that risk appetite in the markets is “declining this week”.
After a resounding start to the month in which Paris gained 7%, Frankfurt 3.8% and London 4.9%, indices are falling on the back of inflationary concerns.
These concerns stem, among other things, from the US’s promise of a $ 1.9 trillion stimulus package to support the economy, with some economists seeing the amount as disproportionate.
US President Joe Biden insisted on Tuesday that “we must strike hard”, estimating that his stimulus plan will create “7 million jobs this year.”
Inflation concerns are reflected in developments in the bond markets, with the 10-year US interest rate currently moving to its highest one-year high, above 1.30%.
At months’ negative levels, the French 10-year rate is close to 0% (-0.11%) for the first time since August and the German price is heading to its highest since June.
A report on the last meeting of the US Central Bank on Wednesday is expected to be published in this context.
Michael Hewson, chief analyst at CMC Markets UK, said it “could give an interesting insight into the concerns about price spikes” that are currently plaguing investors.
In terms of indicators on Wednesday, UK inflation accelerated very slightly to 0.7% in January, driven by household goods prices, and car sales collapsed on the European continent in January, showing a 24% decline over the course of one year.
The epidemic appears to be slowing down: The number of new COVID-19 cases reported worldwide decreased 16% last week to 2.7 million, the World Health Organization announced Tuesday evening.
On the oil side
Around 7.15 am, it was an American barrel West Texas Intermediate By 1.25% to $ 60.80, per barrel of Brent From the North Sea it rose 1.55% to 64.33 USD