European stock markets adjust ahead of key US inflation data

The stock market world is holding its breath, on the lookout for economic signals coming from China and the United States. The global context, marked by economic adjustments and dollar fluctuations, intrigues European markets. Added to this are notable movements on the Stoxx 600 with Just Eat and Siemens featured. Yet attention remains focused on US inflation data, crucial for the Federal Reserve's decisions on interest rates.

The European stock market awaiting American data

This Wednesday, the European stock markets are moving without much variation, all attention being focused on inflation figures in the United States. The Stoxx 600, a benchmark index in Europe, shows stagnation, largely due to global uncertainty and mixed results from businesses on the continent.

Investors are cautious, waiting to see whether or not the US Federal Reserve will make another interest rate change.

However, specific events shook up some stocks. Just Eat TakeawayFor example, jumped 20% thanks to the announcement of the sale of its American unit Grubhub for $650 million. Siemens Energyfor his part, rose 19.1% after an upward revision of its medium-term financial objectives, a welcome sign of confidence in the energy sector.

Despite this relative stability, a few key trends are emerging:

• Rise in energy values : Siemens Energy is a striking example, with an increase due to optimistic financial forecasts;
• Food sector : Just Eat Takeaway is strengthened by the sale of Grubhub;
• Banking sector : ABN Amro disappoints with a 9% drop in quarterly profits.

This contrasting picture has only accentuated the wait around American inflation, a central element which could dictate the continuation of global events in the stock market.

The influence of American inflation

The question of American inflation is the subject of all speculation at the moment, as it could affect the Fed's monetary policy. L'consumer price index for the month of October is expected with a potential increase of 0.2%which would carry annual inflation at around 2.6%.

Investors are closely monitoring this publication, because it influences rate expectations: stable inflation could encourage the Fed to maintain low rates, favorable to stock market investments.

Current trends in the US market are adding pressure. Technology stocks, for example, which have seen a rally in recent months, are affected by the prospect of higher interest rates weighing on valuations. Moreover, the dollar reached new heights against the euroimpacting international trade.

Even if certain sectors, such as precious metals continue to benefit from inflation fearsrising bond yields are starting to dampen investor enthusiasm for high-growth stocks.

Meanwhile, Asian stock markets are following the US trend with widespread declines: Japan's Nikkei, South Korea's Kospi, and Hong Kong's Hang Seng are all down around 1%. This testifies toa certain global excitementamplified by uncertainty over United States economic policies.

In short, if crypto-enthusiasts are delighted with the current context, it is thanks to the recent 25 basis point drop in Fed rates which perhaps heralds the return of a crypto bull run.