PARIS (Reuters) – European stock markets ended scattered on Friday, with markets digesting numerous results publications after a poor week in macroeconomic indicators.
In Paris, the CAC 40 lost 0.24% to 7,647.52 points, while the German Dax fell by 0.22% and the British Footsie by 0.3%.
The EuroStoxx 50 index, the FTSEurofirst 300 and the Stoxx 600 ended without a marked direction.
Over the week, the CAC 40 gained 0.72% and the Stoxx 600 0.2%.
A burst of results animated discussions in Europe, in a context poor in economic data.
Only final inflation in Germany was released on Friday, confirming the preliminary reading from January.
In the United States, CPI inflation figures for 2023 were revised on Friday, and showed a slightly smaller rise in inflation in December than at first reading.
“Out of the last 15 weeks, 14 have recorded positive performances on stocks, which already brings the performance of global stocks since the start of the year to more than 3% (MSCI data). It is obvious that we will not be able to not continue the year at this pace”, warn the strategists at Lombard Odier, who speak of a “rather boring week on the markets”.
“The question of valuations is therefore likely to arise again in the near future as investors will struggle to find a balance between the still high level of rates and the current stronger-than-expected nominal growth.”
VALUES
Hermès reported a larger-than-expected increase in sales in the fourth quarter of 2023 and announced an increase in prices this year, which pushed the stock up 4.8% and led the luxury sector up of 1.64%.
L’Oréal fell 7.58% as its sales in Asia were considered disappointing, with its travel retail business suffering from new regulations in China.
Nexans advanced 5.87% after announcing the acquisition of La Trivenenta Cavi.
Ubisoft jumped 13.81% after reporting the day before third quarter results slightly better than forecasts and said it expected a strong increase in net bookings in the fourth quarter.
Sensor manufacturer AMS OSRAM soared 12.64% after a quarterly turnover higher than its forecasts in a context of strong demand for products intended for automotive applications, particularly from China.
A WALL STREET
Wall Street appears dispersed at closing time in Europe, in the absence of major events.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.25% for the Dow Jones, against an increase of 0.28% for the Standard & Poor’s 500, and 0. 95% for the Nasdaq Composite.
RATE
European yields ended higher, with the ten-year hitting its highest level since early December, as markets continued to reassess their prospects for rate cuts from the European Central Bank.
At the close of the rate markets in Europe, the yield on the ten-year Treasury rose 1.5 bp to 4.1851%, compared to 3 bp for the two-year rate, to 4.4862%.
The German ten-year yield rose 2.3 bps to 2.379%, while the two-year yield rose 5.4 bps to 2.7207%.
CHANGES
Currencies show small variations in a context poor in macroeconomic data.
The dollar erodes by 0.04% against a basket of reference currencies, while the euro nibbles 0.03% to 1.0779 dollars. The pound sterling strengthened by 0.06% to $1.2623.
OIL
Crude is up slightly in a volatile geopolitical context.
Brent increased by 0.27% to $81.85 per barrel, American light crude (West Texas Intermediate, WTI) increased by 0.37% to $76.5.
(Written by Corentin Chappron, edited by)
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