PARIS (Reuters) – The main European stock markets opened cautiously higher on Thursday pending the publication of the minutes of the last monetary policy meeting of the European Central Bank (ECB), while the day before the American Federal Reserve (Fed) left to hear that it could soon slow the pace of its rate hike.
In Paris, the CAC 40 gained 0.61% to 6,719.81 around 09:45 GMT. In London, the FTSE 100 advances by 0.1% and in Frankfurt, the Dax takes 0.74%.
The EuroStoxx 50 index rose by 0.58%, the FTSEurofirst 300 by 0.18% and the Stoxx 600 by 0.32%.
US markets, which closed Wednesday in the green, comforted by the prospect of a lull in the cost of credit in the United States, will remain closed on Thursday for the Thanksgiving holiday and will reopen on Friday for a shortened session.
Minutes from the Fed’s November meeting, released on Wednesday, show that a “substantial majority” of the bank’s monetary policy committee (FOMC) members felt it would be “probably soon” appropriate to slow the pace. pace of rate hikes.
This allowed bond yields to fall as the market now assesses the probability of a US rate hike of half a point in December at 76% to 4.25-4.5% before a peak in the above 5% in May 2023..
In the euro zone, the ten-year German Bund yield fell by almost eight basis points after having already lost five the day before, while the ECB must in turn publish, at 12:30 GMT, the minutes of its last meeting of Monetary Policy. A Reuters survey predicts a limited 50 basis point hike in ECB rates next month.
As for the economic indicators of the day, the business climate in industry in France ?????? has deteriorated???? in November (101.0 after 103.0 in October), while in Germany it improved more strongly than expected with an Ifo index at 86.3 after 84.5 the previous month.
On the stock market, the positive trend in Europe is led by the real estate compartment (+2.97%) which is benefiting from the hope of a deceleration in the rise in interest rates.
Financial publications are also driving the exchanges, such as Rémy Cointreau, which lost 1.65% after declaring that the second half of its financial year would see a return to normal in the consumption of its spirits after “two years of exceptional growth”. The group was also cautious about the situation in China, highlighting the low medium-term visibility in a context of health restrictions.
Soitec dropped 0.59% despite confirmation of its annual forecasts, while LDC, up 2.02%, was driven by improved profitability in the first half.
In mergers and acquisitions, Derichebourg and Elior (+ 10.47%) announced Thursday that they were holding discussions on the takeover by the collective catering group of the services branch of Derichebourg.
Elsewhere in Europe, Kingfisher fell 1.53% as Jefferies expressed “surprise” after the home improvement group’s full-year profit forecast was revised down.
(Written by Claude Chendjou, edited by Blandine Hénault)