Eurozone stock markets closed higher following the ECB’s interest rate cut, while Wall Street stabilized after reaching its latest high.
This tranquility follows a very positive previous session, driven by a wave of favorable news for Artificial Intelligence.
European stock markets rose on Thursday following the European Central Bank’s decision to cut its official interest rate for the first time since 2019, while caution prevailed on Wall Street ahead of Friday’s highly anticipated non-farm payrolls report for May.
The Euro Stoxx 50 index increased by 0.66% after the ECB lowered the rate by 25 basis points, as expected. However, sovereign bond yields across the eurozone also rose.
The ECB lowered the rate, but to secure votes, it had to accept an increase in its official inflation forecasts. Therefore, it might be called a “hawkish easing”.
Meanwhile, on Wall Street, the Dow Jones rose by 0.11%, the S&P 500 edged down by 0.13%, and the Nasdaq Composite was flat at 0.17%, with Treasury bond yields stable as investors awaited the jobs report.
This tranquility follows a very positive previous session, driven by a wave of favorable news for Artificial Intelligence, leading to the S&P closing at record highs and Nvidia surpassing $3 trillion in market cap.
In Latin American markets, trading was mixed. Chile’s S&P IPSA index rose by 0.21% to 6,670.27 points. Shares of Falabella (1.8%), Entel (1.76%), and Concha y Toro (1.74%) led the gains. Banchile published a positive analysis today regarding Concha y Toro’s stock.
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