PARIS (Reuters) – European stock markets ended higher on Thursday in a session dominated by the publication of good corporate results and economic indicators attesting to the solidity of the American economy.
In Paris, the CAC 40 gained 0.74% to 7,095.99 points. The British Footsie gained 0.22% and the German Dax 0.34%.
The EuroStoxx 50 index ended up 0.6%, the FTSEurofirst 300 0.29% and the Stoxx 600 0.42%.
At the time of the close in Europe, Wall Street was moving in mixed order: the Dow Jones lost 0.07%, held back by IBM (-4.75%) which did not reach its annual cash flow target, the Standard & Poor’s 500 gained 0.21% and the Nasdaq Composite took 0.55%, driven by Tesla’s 8.9% increase the day after the publication of better than expected quarterly results.
The markets welcomed the series of indicators published in the United States: growth in the fourth quarter was higher than expected, at an annualized 2.9%, weekly jobless claims fell while the Reuters consensus gave them increase and durable goods orders rose 5.6% last month, more than twice what was expected.
“Overall, with the data being better than expected, it suggests there is more resilience in the economy than many people anticipated,” said Joe Manimbo at Convera. “The moderation in inflation figures in the fourth quarter data suggests a ‘Goldilocks’ economic scenario (a slowdown in inflation against a backdrop of moderate growth, editor’s note)”, added the analyst.
The renewed appetite for risk is also fueled by the prospect that the Federal Reserve will slow the pace of its monetary tightening next Wednesday, with a rate hike of only a quarter of a point.
VALUES
In the news of the results in Europe, STMicroelectronics published a turnover and a quarterly profit better than expected, allowing it to take 8.19% on the stock market, its best performance since March.
Spanish bank Sabadell jumped 10.53% after announcing a share buyback program and an upbeat outlook for 2023 while telecoms equipment maker Nokia rose 3.99% after beating market expectations. in quarterly operating profit.
Red lantern of the Stoxx 600, the world’s number one spirits Diageo lost 5.52% in response to disappointing half-year sales and prospects in North America.
Elior (-14.41%) also posted a heavy drop after its quarterly accounts.
RATES/EXCHANGES
US bond yields slightly amplified their rise after the publication of the day’s indicators: the ten-year one took nearly five points to 3.5039% at the close in Europe.
“These slightly higher-than-expected data are good signs for growth and will help reduce the downward movement in Treasury yields that had developed over the past two weeks in response to Fed rate expectations, said Matthew Miskin, co-head of investment strategy at John Hancock Investment Management.
The greenback gained ground against a basket of major currencies (+0.44%) and the euro dropped 0.48% to 1.0863 dollars.
The ten-year German Bund yield ended higher at 2.215%.
OIL
Today’s good US statistics and optimism about demand in China are driving oil prices higher.
Brent gained 1.49% to 87.4 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.47% to 81.33 dollars.
(Laetitia Volga, edited by Nicolas Delame)
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