PARIS (Reuters) – European stock markets ended up on Friday a session driven by company results, investors digesting numerous indicators published this week.
In Paris, the CAC 40 gained 0.32% to 7,768.18 points, while the German Dax increased by 0.42% and the British Footsie by 1.5%.
The EuroStoxx 50 index ended the session with an increase of 0.44%, compared to 0.67% for the FTSEurofirst 300 and 0.64% for the Stoxx 600.
Over the week, the CAC 40 gained 1.58% and the Stoxx 600 1.41%.
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Numerous company results animated the markets on Friday, including those of Eutelsat and Swiss Re.
The numerous indicators published this week in the United States, including producer prices and the Michigan confidence index on Friday, showed that the American economy remained resilient, despite the rate increases.
Although it removes the prospect of monetary easing, the good performance of the world’s largest economy nevertheless encourages investors who remain optimistic.
In fact, if higher than expected CPI inflation in the United States caused the indices to fall on Tuesday, stocks then started to rise again.
“Only raw materials are still sending signals of recession – other assets are now behaving almost as in a classic recovery – a recovery without recession,” notes Florian Ielpo, head of macroeconomic research at Lombard Odier.
“A seesawing disinflation accompanied by better earnings seasons, this is what could define the first half,” adds the economist.
RATE
US yields are rising after the announcement of stronger than expected growth in producer prices in January in the United States.
At the close of the European interest rate markets, the ten-year Treasury yield rose 6.5 basis points to 4.3047%, compared to 10.6 bp for the two-year rate, to 4.6735%.
The German ten-year yield rose 4.9 bps to 2.401%, while its two-year equivalent rose 7.2 bps to 2.8339%.
VALUES
Euronext gained 2.11% after reporting on Thursday evening a better than expected adjusted operating profit in the fourth quarter, driven by a record performance in bonds, post-market activities and the positive contribution of European expansion of Euronext Clearing at the end of November.
Umicore dropped 1.43%, after publishing results below expectations in the second half, the group’s outlook also falling short of market forecasts.
Swiss Re, which published a net profit for 2023 without surprise, lost 2.56%.
The manufacturer of construction chemicals Sika published an annual profit on Friday in line with analysts’ forecasts and said it expected an increase in sales of 6% to 9% in 2024. The stock advanced 2.83% .
Norwegian Air soared 10.58% as the airline announced it was aiming for a record profit this year.
A WALL STREET
Wall Street is hesitant as investors worry about the implications of producer prices for inflation.
At closing time in Europe, trading on the New York Stock Exchange indicated a stable Dow Jones and Standard & Poor’s 500, compared to an increase of 0.18% for the Nasdaq Composite.
CHANGES
Foreign exchange markets are calm, despite the latest data published in the United States.
The dollar is stable against a basket of reference currencies, while the euro lost 0.06% to 1.0765 dollars. The pound sterling fell 0.13% to 1.2584 dollars.
OIL
Crude prices are on the rise, with the latest economic figures in the United States giving hope that American demand will remain strong.
Brent rose 0.47% to $83.25 per barrel, American light crude (West Texas Intermediate, WTI) gained 0.65% to $78.54.
(Written by Corentin Chappron)
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