In the absence of progress in negotiations between the United States and Iran regarding the Middle East conflict, investors shifted their focus to macroeconomics.
Already cooled by the previous day's U.S. inflation figures, which generally exceeded expectations, market participants were further unsettled by the release of the U.S. Producer Price Index (PPI) for April.

According to the Bureau of Labor Statistics, this key inflation gauge rose significantly more than anticipated. Last month, it increased by 1.4%, compared to expectations of +0.5% and a previous reading of +0.7%, which was revised upward by +0.5%. Energy prices naturally bolstered the rise in this index, which measures price changes for goods sold by manufacturing firms.

This statistic, combined with the previous day's inflation data, significantly reduces the likelihood of monetary easing by the U.S. Federal Reserve.

In a note from UBS released this morning, analyst Andrew Dubinsky indicated that the Swiss bank has revised its Fed outlook. It now anticipates two rate cuts, in December 2026 and March 2027, as 'the conditions necessary to justify a move as early as September - notably sustained disinflation in core goods and a reduction in supply-related uncertainty - have not yet been met'.

Meanwhile, in the U.S., after just over two hours of trading, the Dow Jones is in the red, shedding 0.55%, while the Nasdaq Composite and S&P 500 are better oriented (+0.60% and +0.15%).

Among other indicators...

In France, inflation was also in focus. The Consumer Price Index rose by 1% in April, in line with forecasts, supported by rising energy prices linked to the Middle East conflict.

In the Eurozone, GDP grew by 0.1% in the first quarter, a figure consistent with expectations. Simultaneously, industrial production in the Eurozone was slightly disappointing, rising by 0.2% against a slightly higher estimate of +0.3%.

On the currency market, the euro is retreating against the greenback (-0.21%) and is trading at 1.1711 dollars.

In commodities, oil prices are moving in mixed directions: +0.78% to 102.80 dollars for WTI in New York and -0.20% to 107.28 dollars for North Sea Brent.

On the corporate front...

In Europe, corporate news was quite dense. The German laboratory Merck KGaA ended the day with a 7.19% jump. The group reported strong quarterly results but, more importantly, raised several of its annual financial targets.

Also among the top performers was the British firm Intertek (+6.32%), a specialist in product and system testing and certification, which finally accepted the offer submitted by the Swedish fund EQT. The latter had seen its three previous proposals rejected. The latest bid values Intertek at 9.4 billion pounds sterling.

Adecco plummeted 16.67% on the Zurich Stock Exchange. Although the group unveiled quarterly revenue that beat expectations, Jefferies noted that operating profit was weaker than anticipated and that the second quarter would bear close monitoring.

Infineon gained 10.75%, still buoyed by the enthusiasm surrounding the semiconductor sector. In Paris, STMicroelectronics and Soitec were also in high demand, posting respective gains of 9.79% and 7.71% at the close.

Also in France, Vallourec surged 12.17%. The premium tubular solutions specialist unveiled first-quarter EBITDA up by 4 million dollars, at the high end of its guidance range.