Europe ends in the green, the Fed is less scary

Europe ends in the green, the Fed is less scary



EUROPEAN STOCK MARKETS END

lähde: Clauda Chendjoua

PARIS (Reuters) – European stocks ended higher on Thursday and Wall Street was also in the green half of the session as renewed optimism in stock markets was confirmed following the release of new economic data in the United States, which calls for only a gradual rise in interest rates.

In Paris, CAC 40 finished with a gain of 1.78% to 6,410.58 points. The British Footsie gained 0.56% and the German Dax 1.59%.

The EuroStoxx 50 index gained 1.72%, FTSEurofirst 300 0.82% and Stoxx 600 0.78%.

The US Department of Commerce said the economic downturn in the first quarter was slightly stronger than originally estimated (-1.5% annualized vs. -1.4%) due to a record high trade deficit and a slight slowdown in inventories.

By contrast, unemployment claims in the United States fell slightly more than expected last week to 210,000.

These statistics did not call into question the renewed optimism seen the day before on Wall Street, and even, according to Thomas Hayes, president of Great Hill Capital, confirmed the scenario of a less significant tightening of monetary policy than expected.

“The data support the development of a possible dove distortion in a few months,” he said.

According to the minutes of the May Fed meeting, most US central bank officials considered a further increase in credit costs of 50 basis points in June and July to be “probably appropriate”, a outlook that reassures some investors who fear a sharp fall in rates. economy into recession.

In Europe, where inflation is also moving to record levels as activity shows signs of slowing, according to the first results of S&P Global’s PMI surveys in May, European Central Bank President Christine Lagarde also spoke in favor. gradual increase in credit costs.

As a sign of investor confidence, the volatility index in the United States fell back to 27.4 points, the lowest since May 18, and in Europe ended with a decline of 6.4% to 25.6 points.

NA WALL STREET

At the time of closing in Europe, the Dow Jones grew by 1.54%, the Standard & Poor’s 500 by 1.76% and the Nasdaq by 2.18%.

All major sectors of the S & P-500 index are in the green, with finance (+ 1.97%) and consumer spending (4.05%). The latter section is supported by forecasts from Macy’s, which jumped 15%, and the annual outlook from low-cost retailers Dollar General (+ 12.1%) and Dollar Tree (+ 17.6%). The distribution subsegment occupies 3.92%.

The trend is also driven by the semiconductor sector (+ 3.18%) after Broadcom (+ 3.4%) announced the acquisition of cloud computing provider VMware (+ 2.7%) for $ 61 billion (€ 56.9 billion). Intel, Qualcomm and AMD advanced from 2.3% to 6.5%.

VALUES

In Europe, where trading was constrained due to the rise, most of the main Stoxx 600 sectors ended in green, energy (+ 1.78%), consumer cyclical (+ 2.46%) and distribution (+ 4.81%). best performances.

TotalEnergies gained 2.1%, while in the luxury sector LVMH, Hermès and Kering moved from 2.4% to 3.6%.

In corporate reports, steel pipe manufacturer Vallourec suffered from a placement of shares of several investors with a decrease of 7.1% with a discount of 12.5% ​​compared to its closing price.

Semiconductor specialists STMicroelectronics and ASM International have benefited from the announcement of Broadcom’s acquisition of VMware.

Elsewhere in Europe, telecom operator BT sold 2.2% after announcing that the British government would launch an investigation into the participation of Patrick Drahi, the founder of Altica, in its capital.

CHANGES

The dollar index lost 0.19% against a basket of benchmarks, with the Fed’s “minutes” not surprising.

The euro, on the other hand, strengthened 0.43% to $ 1.0715, while the pound sterling reached a three-week high against the dollar at 1.2620.

RATE

Bond yields differed little due to declining inflation concerns, given the latest results published by the companies. The value of ten-year government bonds lost three basis points to 2.7756%.

In Europe, 10-year German bond yields rose about five basis points to 0.9940% after reaching 0.887% during the session, the lowest level since May 13, due to uncertainties about the size of the expected ECB rate hike in July.

OIL

Oil prices are supported both by concerns about supplies ahead of the European embargo on Russian hydrocarbons and by the announcement of a larger-than-expected decline in oil stocks in the United States during the week before May 20.

Brent rose 2.82% to $ 117.26 a barrel, and West Texas Intermediate (WTI) rose 3.62% to $ 114.36.

(Report by Claude Chendjou, edited by Jean Terzian)

.



Source link

Leave a Comment

Your email address will not be published.