Europe ends cautiously higher, Netflix supports Wall Street
By Claude Chenjou
PARIS (Reuters) – European stock markets ended higher on Friday and Wall Street was in the green in early morning trading in New York, with recession fears and a recent restraining moment dominated by optimism over financial releases from companies such as China and Netflix. statements of central banks.
In Paris, the CAC 40 index ended up at 6,995.99 points with an increase of 0.63%. Britain’s Footsie index rose by 0.30%, and Germany’s Dax index rose by 0.76%.
EuroStoxx 50 index gained 0.63%, FTSEurofirst 300 0.32% and Stoxx 600 gained 0.37%.
For the week as a whole, the CAC 40 lost 0.39% in a profit-taking context, while the Stoxx 600 lost 0.09%, with the pan-European index erasing nearly half of its 12.9% loss in the first three weeks of 2023. Recorded in 2022.
Investors’ caution is fueled by the statements of European Central Bank (ECB) and US Federal Reserve (FED) officials, who have been insisting for several days on the need for long-term monetary tightening in the context of inflation, which they still consider high.
Philadelphia Fed President Patrick Harker, unlike his colleagues, said on Friday that it is time to slow the pace of rate hikes.
VALUES IN EUROPE
The basic resources division (+0.77%), energy (+0.44%) and luxury stocks (LVMH and Hermès about 1%) were sought on hopes that the reopening of the Chinese economy would benefit global growth.
The distribution index (+1.09%) led the Stoxx 600, regaining some of the ground lost the day before.
In corporate news, Sweden’s Ericsson group, weighed down by a slowdown in the US market in the fourth quarter, fell 4.7%, followed by Nokia, which fell 3.68%.
ON WALL STREET
At the close in Europe, the Dow Jones advanced 0.25%, the Standard & Poor’s 500 advanced 0.83% and the Nasdaq advanced 1.4%.
After reporting better-than-expected subscriber numbers in the fourth quarter as it shook the tech sector with a series of layoff plans announced by Microsoft (+2.67%), Amazon (+1.94%) or even Alphabet (+4.06) then Netflix rose 6.14%. %) against the backdrop of rising interest rates and economic uncertainties.
“Investors are starting to see tech as a completely depressed sector, but (their) quality and fundamentals are holding up,” said Silvia Jablonski, chief investment officer at Defiance ETFs.
SHOWS OF THE DAY
U.S. home resales fell to an annual rate of 4.02 million units in December, the lowest level in 12 years, but recent declines in real estate interest rates have combined with slower growth in average home prices. hopes for the recovery of the sector.
UK retail sales showed an unexpected 1% drop in December.
CHANGES
The dollar used its safe haven status to gain 0.14% against other major currencies.
The Japanese currency, which is trading at 129.89 yen to the dollar, is being affected by the ongoing ultra-accommodative policy of the Bank of Japan (BoJ).
The pound was down 0.14% at $1.2372 after UK retail sales figures.
The euro gained 0.05% to $1.0832.
RATE
Bond yields in Europe have been driven by restrictive statements from several ECB officials, including Francois Villeroy de Galhau, Olli Rehn and Christine Lagarde.
The ten-year German Bund yield rose 11.7 basis points to 2.17%, but remained below its 11-year high hit on January 2 at 2.569%.
Its U.S. equivalent for the same maturity rose 9.6 basis points to 3.49%, as Kansas City Fed President Esther George said on Friday she expected more evidence of slowing U.S. inflation.
OIL
Oil prices are headed for a second straight week of gains, supported by the prospect of a jump in demand in China after the lifting of COVID-19-related health restrictions.
Brent rose 0.73% to $86.79 a barrel, while US light oil (West Texas Intermediate, WTI) rose 0.77% to $80.95.
To be watched on Monday:
MARKET SITUATION:
(Some data may show slight variation)
INSIDE THE FENCE
EUROPE
Indexes Last Available. There is. %YTD
Points
Eurofirst 300 1,785.30 +6.26 +0.35% +6.37%
Eurostoxx 50 4119.90 +25.62 +0.63% +8.60%
CAC 40 6,995.99 +44.12 +0.63% +8.07%
Dax 30 15,033.56 +113.20 +0.76% +7.97%
FTSE 7770.59 +23.30 +0.30% +4.28%
SMI 11295.02 +36.05 +0.32% +5.27%
Values to watch in and around Paris
Europe: [WATCH/LFR]
TREND TO
WALL STREET
Indexes Last Available. There is. %YTD
Points
Dow Jones 33135.68 +91.12 +0.28% -0.03%
S&P-500 3932.85 +34.00 +0.87% +2.43%
Nasdaq 11014.92 +162.65 +1.50% +5.24%
Nasdaq 100 11474.93 +179.26 +1.59% +4.89%
Minutes of the meeting on the wall
Street: [.NFR]
“The Day Ahead” – Update on the next session
on Wall Street [DAY/US]
CHANGES
Has Expectation Rate.% YTD
Euro/Dlr 1.0833 1.0827 +0.06% +1.22%
DLR/Yen 129.92 128.42 +1.17% -0.91%
EUR/JPY 140.76 139.10 +1.19% +0.33%
Dlr/CHF 0.9216 0.9162 +0.59% -0.30%
EUR/CHF 0.9986 0.9921 +0.66% +0.92%
Stg/Dlr 1.2374 1.2389 -0.12% +2.29%
Index $ 102.2310 102.0580 +0.17% +6.30%
GOLD
There is. %YTD
Gold Spot 1923.62 1931.39 -0.40% +26.80%
RATE
There is an end. Spread/close
(honey)
Future Bunds 138.21 -1.34
10-year Bunds 2.17 +0.00
Bund 2 years 2.58 -0.00
10-year OATs 2.62 -0.00 +44.60
10-year Treasury 3.49 +0.09
Treasuries 2 years 4.19 +0.07
OIL
Previous Price Change Change % YTD
US light crude oil 81.00 80.33 +0.67 +0.83% +32.33%
Brent 86.87 86.16 +0.71 +0.82% +31.56%
(Writing by Claude Chendjou, Editing by Bertrand Boucey)
