(Reuters) – European stocks ended sharply higher on Friday and Wall Street rose mid-session, buoyed by bargain buying after two consecutive days of declines, as investors regained confidence in a slower rate hike. interest in the face of the risk of recession.
In Paris, the CAC 40 gained 1.04% (68.34 points) to 6,644.46 points, in London, the FTSE 100 advanced by 0.53% and in Frankfurt, the Dax gained 1.16%.
The EuroStoxx 50 index ended up 1.2%, the FTSEurofirst 300 1.08% and the Stoxx 600 1.16%.
At the time of the close in Europe, Wall Street was also evolving in the green, the Dow Jones winning 0.6% and the Standard & Poor’s 500 0.38% while the Nasdaq Composite, held back by the decline in Tesla ( -2.4%) and Amazon (-0.7%) only posted a symbolic gain.
If the statements of James Bullard, the president of the Federal Reserve of St Louis, on a possible rise in rates to more than 5% worried the markets on Thursday, and if Christine Lagarde, the president of the ECB, underlined that the rates remain the main weapon in the fight against inflation, the scenario of a slowdown in monetary tightening seems to have regained the upper hand, at least temporarily.
Reflecting renewed investor optimism: Capital inflows into equity funds hit $22.9 billion in the week to Wednesday, its highest level in more than eight months, weekly data shows of Bank of America and EPFR.
Over the week as a whole, the Stoxx 600 gained 0.25% and the CAC 40 0.76%, its seventh consecutive weekly increase.
VALUES
In Europe, among the strongest sectoral gains of the day are the cyclical sectors of the automobile (+2.15%) and industry (+1.65%), but also that of the services to the communities (+1, 89%).
This sector benefited in particular from the jump of 8.88% of the Austrian electricity producer Verbund, the methods of taxation of the exceptional profits of the sector detailed by Vienna being more advantageous than expected.
In Paris, Teleperformance (+3.65%) rose to the top of the CAC 40 after announcing its withdrawal from the content moderation market segment at the origin of its recent setbacks in Colombia.
THE INDICATORS OF THE DAY
In Britain, retail sales increased by 0.6% in October, a rise twice as strong as expected.
In the United States, home resales fell for the ninth consecutive month, by 5.9% over one month and 28.4% over one year.
CHANGES
The dollar is practically stable against the other major currencies (+0.03%) but it is heading for its strongest weekly increase in five weeks, an increase of almost 0.4% at this stage.
The euro fell to $1.0343 as the pound rose, benefiting from better than expected UK retail sales figures.
RATE
Benchmark bond yields in the euro zone, which rose at the start of the day, ended lower, at 2.016% for the ten-year Bund and 2.099% for its two-year equivalent.
So-called ‘peripheral’ yields only briefly reacted to news of banks’ early repayment of 296 billion euros in cash to the ECB, an amount below expectations that eased fears of the sudden return to the market. large volumes of securities currently used as collateral.
The two-year-old Italian, considered potentially sensitive to this factor, thus ended up down.
On the American market, yields rose a little, to 3.8157% for the ten-year and 4.4777% for the two-year but above all, the inversion of the two-year-ten-year segment of the yield curve is accentuated with a gap of nearly 70 points between the two maturities.
OIL
Oil is down sharply and is heading for a second consecutive week of decline, consequences of fears of deterioration in demand in China.
Brent fell 3.17% to 86.93 dollars a barrel and US light crude (West Texas Intermediate, WTI) 3.44% to 78.83 dollars.
Brent posted a drop of more than 9% over the week, WTI a drop of more than 11%.
(Written by Marc Angrand, edited by Jean-Stéphane Brosse)
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