Stocks continue to rise, the dollar continues to fall
PARIS (Reuters) – European stock markets ended in the green on Friday, excluding London, and Wall Street’s Nasdaq continued its mid-session gains, with stocks boosted by slowing U.S. inflation and the easing of health restrictions in China.
In Paris, the CAC 40 rose 0.58% (37.79 points) to 6,594.62 points, its best level since April at 6,636.81. Frankfurt’s Dax gained 0.56%, while London’s FTSE 100 fell 0.78%, punished by lingering recession fears after confirmation of a contraction in third-quarter gross domestic product (GDP).
The EuroStoxx 50 index ended the day with an increase of 0.57%, FTSEurofirst 300 0.04% and Stoxx 600 0.09%.
Wall Street was mixed at the close in Europe, with the Dow Jones gaining 0.8%, the Standard & Poor’s 500 almost flat and the Nasdaq Composite gaining 0.45%.
The bankruptcy filing by cryptocurrency exchange FTX and the announcement of the resignation of its managing director are prompting some investors to pull back, but the trend is supported by recent news from Beijing, where authorities have decided to ease some health conditions. restrictions are aimed at preventing the spread of COVID-19.
And the main driver of the recovery in stocks remains the slowdown in US inflation, which gives hope for less restrictive policy from the Federal Reserve in the coming months.
“The reaction to this number seems a bit extreme, perhaps exaggerated, but in all honesty, investors have been waiting for this opportunity for a long time, and during that time, many negative elements have come in,” said senior analyst Craig Erlam. In Oanda.
As a whole, Stoxx 600 rose by 3.66% and CAC 40 rose by 2.78% during the week. Thus, the Paris market showed a rebound for six consecutive weeks.
VALUES
The easing of Chinese health restrictions, which could encourage a faster recovery of demand in Europe, along with the impact of a weaker dollar on base metal prices, benefited the commodities sector, with the Stoxx index gaining 2.58%.
Steel producer ArcelorMittal gained 5.72%, mining giant Rio Tinto gained 4.86%.
The news also benefited luxury stocks such as LVMH (+2.82%) or Kering (+2.18%), while Richemont gained 10.46% after quarterly results driven by jewelry sales.
After the Nasdaq, the high-tech sector was up 1.71% <.sx8p.< p> was awarded the prize.
Thales fell 8.63% after reports of a data leak on the “dark web”, despite the group’s statement that its systems had not been hacked.
SHOWS OF THE DAY
Gross domestic product (GDP) in the United Kingdom fell 0.2% in the third quarter, compared with a Reuters consensus estimate of a 0.5% decline.
Inflation in Germany, calculated according to European HICP standards, was confirmed at 11.6% in October.
In the United States, the University of Michigan’s confidence index fell more than expected to 54.7 from 59.9 in October.
CHANGES
The dollar, which already lost more than 2% after Thursday’s US CPI, fell another 1.34% against a basket of benchmark currencies, heading for its biggest two-day decline since 2009.
The euro took the opportunity to rise above $1.03 (+1.24%) for the first time in three months.
The pound sterling, in turn, gained 0.69% against the dollar and 0.59% against the euro, as British GDP fell less than expected in July-September.
On the cryptocurrency side, bitcoin fell 4.22% below $17,000, again affected by FTX’s setbacks.
RATE
US bond markets remain closed for Veterans Day, the day after a session marked by a dramatic drop in Treasury yields in response to inflation numbers: 32 basis points lower in a ten-year session than seen since 2009.
In Europe, the day was marked by a brief inversion in the two-to-ten-year portion of the German yield curve, the clearest sign yet that investors are anticipating a recession in the Eurozone.
At the end of the session, two-year German increased by 16 basis points to 2.134%, and ten-year was shown at 2.156% (+15.1 points).
OIL
The easing of Chinese health restrictions, which could boost demand, and the weakening of the dollar are solidly supporting the oil market: Brent rose 2.15% to $95.68 a barrel, and American light oil (West Texas Intermediate, WTI) rose 2.52% to $88.65. .
(Written by Marc Angrand)
