Photo of traders who work at the Frankfurt Stock Exchange
(Reuters) – European stocks ended flat on Friday but posted their best week since late March as relief after U.S. inflation data boosted speculation that U.S. monetary tightening might end soon.
In Paris, the CAC 40 gained 0.06% to 7,374.54 points. In Frankfurt, the Dax fell 0.22% and in London, the FTSE 100 lost 0.08%.
The EuroStoxx 50 index gained 0.24%, the FTSEurofirst 300 lost 0.03%. The Stoxx 600 fell 0.10% but the index gained 3.05% this week, its best performance since the end of March.
Over the whole week, the CAC 40 gained 4.12%.
Michele Morganti, senior equity strategist at Generali Investments in Rome, however, urged caution.
He believes price-earnings ratios are “exuberant” relative to real rates and economic growth, especially in the United States.
“We remain cautious on equities in the short term due to persistent core inflation, tightening credit conditions and macroeconomic indicators pointing south,” said Michele Morganti.
VALUES
After jumping more than 7% during the day, Vallourec, which announced an increase in its EBITDA target for the second quarter and a forecast for a reduction in its net debt in the second half, ended with a gain of 1.85%.
AT WALL STREET
At the time of the close in Europe, Wall Street was evolving in the green after the good results of JPMorgan and Wells Fargo. The Dow Jones gained 0.31%, the Standard & Poor’s 500 0.16% and the Nasdaq Composite 0.38%.
DAY INDICATOR
The only major indicator of the day, the morale of American households has improved markedly since the beginning of July compared to June, to its highest level in almost two years with the decline in inflation and the solidity of the employment, according to the first results of the monthly survey of the University of Michigan.
CHANGES
The dollar is regaining color after hitting a low since April 2022 the day before. It is advancing by 0.10% against a basket of reference currencies. Over the week, it fell 2.36%. The euro is displayed at 1.1238 dollars, up 0.98%.
RATE
Yields on government bonds rose late Friday after the US consumer sentiment survey showed they had raised their inflation forecast slightly.
The ten-year Treasuries yield rose 3.8 basis points to 3.7969 and its German equivalent ended at 2.4750 (+1 basis point).
OIL
On the oil market, Brent fell 1.46% to 80.17 dollars a barrel and American light crude (West Texas Intermediate, WTI) lost 1.52% to 75.72 dollars.
(Written by Kate Entringer)