(CercleFinance.com) – The Paris Stock Exchange seems frozen on the rise (+0.4%), totally insensitive to the decline in Wall Street (the Dow Jones loses -1%), the same for the Euro-Stoxx50 (+0 .4%) which benefits from the gains of the DAX (+0.6%).
The Nasdaq Composite returns to equilibrium while still gaining +0.6% at the start of the session after +4.4% the day before, or +5% in 3 hours and a half of quotations taken continuously. .
At 6,770, the CAC40 is only down 5.3% since the start of the year and the index flirted with 6,800 shortly after the opening, after the very sharp rise on Wall Street the day before. .
It was apparently Christmas before its time: investors only remembered the passage where Jerome Powell planned to slow the pace of rate hikes by the end of the year.
Speaking at a conference organized by the Brookings Institution in Washington, Jerome Powell, the president of the American Federal Reserve, also recalled that the cost of money would be raised beyond the levels anticipated by the market and that the FED would not let its guard down before inflation was brought under control.
But the markets put forward statements that suit them like: ‘It would make sense to moderate the pace of our rate hikes, as we are approaching the level of restraint needed to bring inflation down and the right time to slow the rate of increases could take place as early as December’… which was anticipated at 90%.
This favorable momentum spread to Asia, where the Tokyo Stock Exchange posted gains of 0.9% Thursday at the very end of the session.
The Fed’s next monetary policy meeting will take place on December 13-14 and investors now believe 77% that it will result in a limited rate hike of 50 basis points.
In terms of figures, US household spending accelerated by +0.8% in October, at a slightly faster pace than income (+0.7%), confirming the good resistance of consumption in the United States.
The Department of Commerce said that this increase is attributable to purchases of cars and gasoline, after an increase of 0.6% the previous month.
This figure is higher than the average forecast of economists, who expected an increase of 0.6%.
The core PCE index, closely watched by the Federal Reserve and which excludes the volatile elements of energy and food, rose by 0.2% in October, after a rise of 0.5% in September: its increase is thus reduced to 5% against +5.2% the previous month, the overall figure having fallen to 6.00%.
US T-Bonds fell last night from -14Pts to 3.61%, then stabilized at 3.600%, their best mark since October 4th.
In Europe, the beginning of the session was punctuated by the final results of the monthly surveys of purchasing managers (PMI) on activity in the manufacturing industry in the euro zone.
The contraction of the eurozone manufacturing sector continued in November, but inflationary pressures eased again. The final PMI index for the manufacturing industry in the euro zone stood at 47.1 in November against 46.4 in October, a two-month high.
France’s PMI buyers’ index came in at 48.3 last month according to S&P Global, marking a recovery from 47.2 in October, but still below the 50 point mark indicating contraction in the economy. activity.
The latest figures showed that the vast majority of the region’s main economies are now below the 50 level, in the contraction zone of activity, a sign that the economic slowdown is fully at work.
Bond markets are celebrating with a spectacular fall of -15pts in yields on our OATs at 2.266%, -13.5pts on Bunds at 1.8150%, -21pts on Italian BTPs at 3.672%.
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