European markets are down slightly, influenced by Wall Street’s slowdown after its recent record highs. Investors are cautious as they await final inflation data for April in the eurozone. The global economic situation remains uncertain, with mixed signals from the USA, China and Japan.
The agenda for today’s “three witches” session, corresponding to the monthly expiry of certain equity and index futures contracts, is cautious. Investors are adopting a cautious stance as they await the definitive estimate of April inflation in the eurozone.
European markets opened slightly lower on Friday, following Wall Street’s loss of momentum after Thursday’s record highs. At the opening, the CAC 40 was down 0.14%, Frankfurt lost 0.21%, Milan 0.03% and London 0.01%. Over the week, Paris and Frankfurt were down, while Milan and London remained stable.
At around 2.30pm, the Paris Bourse’s flagship index was down 0.48% at 8,148.97 points, continuing to distance itself from last week’s all-time highs. On Thursday, it had already ended down 0.63%. Over the week, the CAC 40 posted a loss of 0.53%, after recording the second-best weekly performance of 2024 the previous week.
Investors are keeping a close eye on price trends, particularly with the final estimate of April inflation in the eurozone due this Friday.
US inflation eases
On Wednesday, U.S. inflation was in line with analysts’ expectations, and on the decline, which brought relief to investors. Expectations of a rate cut in July and September have risen as a result. A single easing is now fully envisaged in 2024, instead of the two estimated just 48 hours ago.
Three members of the US central bank have rejected the idea of an early cut, saying that more evidence of disinflation recovery is needed. Monetary policy is “restrictive” and “in a good position”, said New York Fed President John Williams. “I don’t expect us to have the greater confidence in the very near term that we need with respect to inflation progress toward a 2% objective.”
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