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Global stock markets mixed after US inflation

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(Paris) Stock markets moved in mixed order on Friday, after the publication of new disappointing results in the American technology sector and US inflation which did not slow down in September.

On Wall Street, around 2:15 p.m. GMT, the Dow Jones gained 1.22%, the S&P 500 took 0.73% and the NASDAQ 0.44%, further down with the slippage of Amazon, the day after that of Meta.

In Europe, London fell by 0.48%, Frankfurt by 0.10%, Milan by 0.44%, but Paris grabbed 0.17%.

The PCE index, the inflation measure favored by the US Federal Reserve (Fed), came out up 6.2% year on year and 0.3% month on month in September, data in line with expectations analysts.

“It looks like another 75 basis point hike in the Fed’s benchmark interest rate is all but a given for its November meeting,” said Christian Scherrmann, U.S. economist at DWS, who asks instead about the next step in December.

“The idea that the US economy is likely to enter a (mild) recession over the next few quarters is becoming more widespread”, and this could allow the Fed to “justify a pause in rate hikes, but maintain high rates to kill inflation,” he adds.

On the bond market, the interest rate on US 10-year debt was fairly stable, while that of 2 years, the most sensitive to monetary policy, rose to 4.36%, against 4.27% at the closing Thursday.

On the Old Continent, GDP growth in the euro zone seems to have resisted better than expected during the summer to the energy crisis and the war in Ukraine, according to several figures published on Friday, even if the risks of recession remain important.

European government interest rates rose after hitting their lowest in nearly a month on Thursday. The ten-year German debt rate was at 2.1%, against 1.95% the day before.

Amazon in disarray, tech driven

The American online sales giant Amazon announced Thursday a 9% drop in its net profit in the third quarter and reports a turnover lower than expected, with forecasts considered cautious for the fourth quarter. The market reacted badly to this publication: the action fell by 10.33%.

Its performance weighed on Chinese tech stocks which slumped in Hong Kong. Shares listed in New York also fell from 3% for Baidu to more than 5% for Tencent or JD.com.

In Europe, the food delivery sector, with JustEat (-4.05%), Deliveroo (-3.76%) and HelloFresh (-4.98%), fell.

On the other hand, Apple (+4.69%) resisted after its results, as did Intel (+9%) despite a lowering of its annual forecasts.

Apple exceeded market expectations, but the iPhone, its flagship product, did not fetch as much as investors had hoped.

The day after a drop of almost 25%, Meta recovered only 2%.

As for Twitter, its action was suspended Friday by the New York Stock Exchange, the NYSE, which indicated that the takeover of the platform was “acted”. The value of the title is blocked at 53.70 dollars, not far from the price proposed by Elon Musk, or 54.20 dollars.

On the side of currencies and commodities

The euro was stable against the greenback at 0.9963 dollars around 2:05 p.m. GMT, as was the pound, which was worth 1.1559 dollars.

Bitcoin was trading at $20,435, flat from the previous day.

Oil prices were falling, weighed down in particular by Chinese demand, which is crucial for the market and still uncertain due to the country’s health policy.

The barrel of Brent from the North Sea for delivery in December fell by 0.74% to 96.24 dollars, that of American WTI by 0.71% to 88.46 dollars.

The price of European natural gas took 3.09% and cost 110.7 euros per megawatt hour.



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