PARIS (Reuters) – European stock markets ended higher on Thursday, supported by better-than-expected PMI indicators and good results from Nvidia, which improved sentiment.
In Paris, the CAC 40 gained 1.27% to 7,911.6 points, while the German Dax advanced 1.47%. Both indexes closed at a record high. The British Footsie advanced 0.29%.
The EuroStoxx 50 index ended the session with an increase of 1.67%, to its highest since 2000, against 0.9% for the FTSEurofirst 300 and 0.9% for the Stoxx 600, the two indices closing at a historic high.
PMI indicators released on Thursday showed that activity in the Eurozone and the United Kingdom was starting to rebound, an encouraging signal as interest rates remain restrictive and weigh on the economy.
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The various surveys, however, showed that inflationary pressures remained, tensions in the Red Sea increasing the cost of inputs and wages continuing to increase in the services sector.
In the United States, new unemployment claims are falling, while the consensus expected an increase.
If the indicator signals that employment tensions in the United States remain strong, sentiment remained resolutely positive on the markets after the publication of better-than-expected quarterly results for Nvidia.
More than 40% of the group’s revenues come from activities linked to artificial intelligence, encouraging investors to bet even more on this theme which has carried the indices on both sides of the Atlantic in 2024.
VALUES
Accor rose 6.56%, the group having reported on Thursday a greater than expected growth in its gross operating surplus (EBE), driven by solid performances in all of its markets.
Plastic Omnium gained 6.82% after reporting on Thursday an annual turnover of more than 10 billion euros thanks to record order intake in 2023.
Sopra Steria said Thursday it was targeting annual organic revenue growth of between 2% and 4%, including a relatively stable first quarter, and jumped 9.74%.
Nestlé fell 4.92%, the group having reported on Thursday organic growth in its turnover of 7.2% in 2023, below expectations, while the rise in prices weighed on its volumes.
WPP fell 6.38% after reporting 0.3% growth in like-for-like revenues on Thursday, with weak spending by American clients in the technology, healthcare and distribution sectors having offset growth in Britain and India.
Rolls-Royce gained 8.29% after its annual results.
Drugmaker Indivior has started consulting with shareholders on moving its primary listing to the United States by mid-year, it said on Thursday, after reporting a 27-year jump % of its annual profit. The stock jumped 22.42%.
The technology sector climbed 3.04%, supported by Nvidia’s results.
A WALL STREET
Wall Street is up sharply, driven by optimism about technology stocks.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.67% for the Dow Jones, compared to 1.62% for the Standard & Poor’s 500, and 2.47% for the Nasdaq Composite.
RATE
Short yields rose in Europe as markets worried about continued inflationary pressures, highlighted by PMIs.
At the close of the European interest rate markets, the ten-year Treasury yield was stable at 4.3187%, compared to an increase of 5bp for the two-year rate, at 4.703%.
The German ten-year yield remained at 2.433%, while the two-year yield rose 5.3 bp to 2.9132%.
CHANGES
The foreign exchange markets are digesting the numerous indicators published on Thursday.
The dollar is stable against a basket of reference currencies, while the euro loses 0.06% to 1.081 dollars. The pound sterling strengthened by 0.09% to $1.2645.
OIL
Crude oil rose after data from the Energy Information Administration showed inventories fell more than expected last week.
Brent strengthened by 0.61% to $83.54 per barrel, American light crude (West Texas Intermediate, WTI) advanced by 0.8% to $78.53.
(Written by Corentin Chappron, edited by Sophie Louet)
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