The New York Stock Exchange was struggling to find a trend in early trading on Tuesday, following a series of mixed economic indicators, in addition to an international environment unfavorable to risk-taking.

At the end of the morning, the Dow Jones index was down 0.1% at 38,752.5 points, while the S&P 500 was virtually unchanged at 5,476.4 points. The Nasdaq Composite lost 0.1% to 17,836.1 points.

Investors learned on Thursday before the opening that retail sales rebounded by just 0.1% on a sequential basis in May, whereas economists were expecting growth of 0.3% on average.

These data seem to confirm the recent slowdown in household consumption, penalized by persistent inflation.

This is the fourth time out of the six retail sales reports published in 2024 that retail sales have come in below expectations", points out Bastien Drut, Head of Strategy and Economic Research at CPR AM.

"These developments will enable the Fed to start clarifying their communication on future key rate cuts", adds the economist.

These figures put back on the table the hypothesis of an interest rate cut in September, now estimated at 61.7% versus 56.7% the previous day.

More encouragingly, industrial production picked up by 0.9% in May, but the capacity utilization rate stood at 78.7% in May, below its long-term average (1972-2023).

Meanwhile, business inventories rose by 0.3% in April, as did business sales, which were also up by 0.3%.

On the bond market, yields on US government bonds fell after these statistics, to around 4.25%, returning to their lowest level since the end of March.

The greenback is benefiting from the weakness of the euro, which is still suffering from political uncertainty in Europe, even though the single currency is timidly climbing back above the 1.0740 threshold.

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