(CercleFinance.com) – The May stock market term (‘3 witches’ session) confirms the return of confidence with a rain of absolute records: the CAC40 ‘GR’ (Global Return) climbs by +1% towards 22.430 (it shows +18% exactly since January 1 and +1.5% over the past week), erasing its previous zenith of April 20 (another session of the ‘3 witches’) established at 22,345.
The CAC40 remains a little behind (7,520) despite an increase of +1%.
Absolute record for the Euro-Stoxx50 at 4,412 (also above the zenith of April 20), record broken for the DAX40 at 16,330 (against 16,285 on January 5, 2022, i.e. +1.5% weekly).
The kickoff of this surge of records was given this morning by Tokyo with a Nikkei (+0.7% to 30,808, or +5% weekly) which recorded its best mark (30,900 intraday) since… 33 years.
The US indices are not to be outdone with a gain of around 0.3% for the S&P500 (at 4,210) and Dow Jones at 33,600.
The New York Stock Exchange remains buoyed by hopes of a cross-party agreement in Washington to raise the US debt ceiling, by quarterly results beyond expectations (+8% on average, but with share buybacks massifs of a few listed titans, since more than 70% of the components of the S&P500 are below their 200-MA).
“In a statement released Thursday, House Speaker Kevin McCarthy gave an optimistic view, saying he sees ‘the path we can take to reach an agreement’,” Wells Fargo said.
‘Furthermore, he even said he expected the House of Representatives to consider a deal next week, with a ‘deal in principle’ possible this weekend,’ Deutsche Bank said this morning. .
On this side of the Atlantic, the news is particularly light in this so-called ‘three witches’ session, the day after Ascension Thursday not expected to see any major corporate publication: investors therefore remain motivated by the hope of seeing the US escape the ‘lockdown’.
The only notable statistic in Europe, the industrial producer price index in Germany rose 4.1% in April year-on-year, marking a sharp slowdown compared to the 6.7% rise observed in March.
The bond markets, which had deteriorated significantly on Thursday, are struggling to turn the tide: our OATs add +3pts to 3.04%, Bunds +4pts to 2.455%, Italian BTPs stabilize at 4.300%… and T-Bonds +6pts to 3.727% while the hypothesis of an 11th rate hike to 5.25/5.50% now garners 40% of the vote.
The Dollar’s rise stalled against the Euro in the 1.0750 zone, the Euro recovered 0.2% to $1.0790.
The rise in rates continues to harm the precious metal: the ounce of gold fell by -1.2%, below $1,960, silver fell to $23.5 (-0.5%).
The barrel of Brent recovered by +0.7% towards $76.5 in London, the price of gas (Megawatt/hour equivalent) fell below $30, the lowest since April 2021.
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