Europe ends in the red, concerns about interest rates and inflation – 11/10/2023 at 6:24 PM

A woman walks past the Oslo Stock Exchange

by Claude Chendjou

European stock markets closed on Friday as Wall Stret attempted a mid-session recovery after ending in the red the day before in response to comments made by US Federal Reserve (Fed) President Jerome Powell. considered restrictive.

In Paris, the CAC 40 ended up 0.96% at 7,045.04 points. The British Footsie lost 1.28% and the German Dax lost 0.77%.

The EuroStoxx 50 index fell 0.75% and the FTSEurofirst 300 fell 0.95%. The Stoxx 600, which hit a three-week high on Thursday, fell 1%.

Over the entire week, the CAC fell 0.03% and the Stoxx 600 fell 0.21%.

At the close in Europe, the Dow Jones rose 0.53%, the Standard & Poor’s 500 0.82% and the Nasdaq 1.26%, after falling from 0.65% to almost 1% on Thursday.

While investors on Wall Street appear to have digested the words of Jerome Powell, who declared Thursday evening that Fed officials were “not convinced” that rates were high enough to counter inflation, the trend in Europe ended on a negative note. day after a positive session.

Global market sentiment was generally gloomy on Friday, with the MSCI World Index falling to a one-week low of 659.86 points and heading for a fourth consecutive session in the red.

Comments from European Central Bank (ECB) President Christine Lagarde on Friday that inflation in the eurozone could rise again in the coming months further depressed markets in Europe.

However, investors continue to believe that major central bank interest rates will fall next year, given the surveys released this week, and are especially waiting for the macroeconomic data to be released next week, especially inflation and retail statistics. the United States.

VALUES IN EUROPE

Among the main sectors of the European stock market, the luxury sector (-2.67%) in particular suffered from Richemont’s results and forecasts (-5.2%), which led to the decline of LVMH (-3.82%) , Kering (-3.33%) and Hermes (-1.55%).

Scor fell 3.49% after reporting a quarterly result that was below expectations, while JCDecaux’s quarterly revenue increase was welcomed.

In London, Diageo fell 12.17% after warning about organic growth.

TODAY’S INDICATORS

The British economy stagnated between July and September, according to figures from the Office for National Statistics (ONS).

US household morale has worsened since early November to 60.4 points compared to October, the preliminary survey from the University of Michigan shows.

CHANGES

The dollar index, which measures the note’s fluctuations against a basket of reference currencies, was stable (+0.05%) on Friday.

Against the Japanese currency, the currency is on track for its best weekly performance in three months, reaching a near one-year high during the session at 151.43 yen.

The euro is trading 0.08% higher at $1.0674 and the pound is down 0.1% at $1.2209.

Among cryptocurrencies, bitcoin gained 2.02% to $37,435 amid speculation about the impending approval of BlackRock’s “Bitcoin spot ETF.”

RATE

Ten-year German Bund yields finished up more than five basis points at 2.718%, with several ECB officials dismissing the prospect of an impending rate cut.

In the United States, the yield on ten-year government bonds, which rose more than 12 basis points on Thursday, fell by about one point on Friday to 4.6142%.

OIL

Oil is heading for a third straight weekly loss of around 5% despite Friday’s recovery, with demand concerns prevailing.

At the end of trading in Europe, Brent rose 1.82% to $81.47 per barrel and US light crude (West Texas Intermediate, WTI) rose 1.91% to $77.19.

(Written by Claude Chendjou, edited by Jean-St├ęphane Brosse)

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