European stock markets are weighing down after the American GDP data, which grew by only 1.6% in the first quarter, while futures on Wall Street are sliding, with drops of more than one percentage point.
Paris lost 1.4%, Frankfurt 1%, Milan 1.1% crushed by fears of stagflation, a mix of low economic growth and high inflation, after the PCE deflator, which measures the change in the prices of goods and services purchased by American consumers, marked a quarterly increase of 3.7%, up from 2% in the previous quarter and above the +3.4% expected by economists.
Bonds also slipped, with government bond yields rising significantly: those of American Treasuries advanced by 8 basis points to 4.72%, those of German Bunds by 3.7 points to 2.62% while BTPs rose by 6 basis points to 4.04%, exacerbating the surge in yields triggered yesterday by the words of ECB member Joachim Nagel, according to which a possible rate cut in June by the ECB does not automatically mean that others will follow suit.
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