Europe ends in the green, inflation and consumption are reassuring the United States

Europe ends in the green, inflation and consumption are reassuring the United States



EUROPEAN STOCK MARKETS END

lähde: Claude Chendjou

PARIS (Reuters) – European stock markets ended higher on Friday and Wall Street was also green in the middle of the session, with stock markets backing particularly support for new economic indicators in the United States, which show a slowdown in inflation while consumer spending remains strong.

In Paris, CAC 40 finished with a gain of 1.64% to 6,515.75 points. The British Footsie won 0.27% and the German Dax 1.62%.

The EuroStoxx 50 index advanced by 1.83%, the FTSEurofirst 300 by 1.45% and the Stoxx 600 by 1.42%.

For the whole week, the Paris index strengthened by 3.66% and the Stoxx 600 by 2.98%, ending a series of eight weeks of weekly declines thanks to statistics that reassured investors since Wednesday’s publication of the minutes of the last monetary policy meeting. the Federal Reserve System (Fed).

Other statistics released by the US Department of Commerce this Friday show that the core PCE price index, the inflation rate preferred by the Fed, slowed to 0.3% in April and 4.9% on a monthly and annual basis. in March it increased by 0.3% and 5.2%.

At the same time, consumer spending, which accounts for more than two-thirds of economic activity in the United States, continued to grow, by 0.9% last month, after a jump of 1.4% (revised from 1.1%) the previous month.

These data support the prospect of a less drastic tightening of monetary policy than originally expected.

In the eurozone, Christine Lagarde, the president of the European Central Bank, also called for a gradual increase in credit costs, while data on German inflation will be published on Monday.

In the face of renewed market optimism, the volatility index fell to 25.9 points in the United States for the third session in a row and ended 7% at 23.8 points in Europe.

VALUES IN EUROPE

At the pan-European Stoxx 600, the positive trend was driven mainly by the consumer goods sector (+ 2.7%), high technology (+ 2.2%) and industry (+ 1.8%), while public services (-0.8%) and energy (0.2%) departments recorded the two largest declines.

Luxury stocks such as Kering (+ 4.5%), LVMH (+ 3.8%), Hermès (+ 4.4%) and Richemont (+ 9.5%) were especially sought after.

In business reports, the Maisons du Monde fell 26.9% as the group lowered its annual forecast at rising costs.

JCDecaux (-0.7%) and Unibail-Rodamco-Westfield (-2.7%) were penalized by a reduction in recommendations from JP Morgan and Goldman Sachs.

NA WALL STREET

At the time of closing in Europe, the Dow Jones advanced by 0.98%, Standard & Poor’s 500 by 1.64% and the Nasdaq by 2.4%.

All the main sectors of the S&P index are developing in the green direction, with the best results being the new technology sector (+ 2.6%) and the consumption sector (+ 2.2%).

Dell rose 11% on quarterly forecasts above expectations, while cosmetics distributor Ulta Beauty jumped 9.1%, supported by strong first-quarter results.

GAP and American Eagle Outfitters, on the other hand, fell about 5% in response to lowering their annual forecasts.

CHANGES

The index measuring the fluctuations of the dollar against a basket of reference currencies has remained almost unchanged (+ 0.04%) and is heading for the largest weekly decline (-1.3% at this stage) in almost four months due to a downward revision in line with expected US rate hikes.

The euro fell 0.12% to $ 1.0710 and rose to 1.0765 during the session, the highest level since April 25.

RATE

Bond yields are falling again due to the prospect of easing fears of a rapid rise in interest rates.

The 10-year-old German Bund fell by three basis points to 0.961% as several European Central Bank officials recently ruled out a half-point increase in the institution’s rates in July.

US government bond yields with the same maturity fell by two points to 2.7378% after rising shortly after the release of statistics on household income and expenditure in the United States.

OIL

Oil prices are slightly different on Friday, but are expected to post full-week gains on fears of tightening supply, the prospect of rising demand as the summer approaches and a possible European embargo on Russian hydrocarbons. [nL5N2XJ2W2

Le Brent avance de 0,38% à 117,85 dollars le baril et le brut léger américain (West Texas Intermediate, WTI) grignote 0,06% à 114,11 dollars.

A SUIVRE LUNDI:

Les marchés resteront fermés lundi aux Etats-Unis en raison du Memorial Day, tandis qu’en Europe sera publiée à 12h00 GMT la première estimation de l’inflation allemande pour le mois mai.

(Rédigé par Claude Chendjou, édité par Sophie Louet)

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