PARIS (Reuters) – European markets ended higher, digesting numerous indicators published on Thursday.
In Paris, the CAC 40 finished stable at 8,151.55 points, while the German Dax gained 0.19% and the British Footsie 0.48%.
The EuroStoxx 50 index ended the session without direction, compared to an increase of 0.11% for the FTSEurofirst 300 and 0.16% for the Stoxx 600.
While the next meeting of the European Central Bank (ECB), on April 11, is in the sights of investors, the minutes of the latest one show that those responsible for the institution are preparing for a rate cut.
The flow of data further encourages markets to bet on this scenario, with producer prices published on Thursday falling more sharply than expected, a sign that price pressures are dissipating.
Furthermore, European activity shifted into expansion territory in March, another encouraging signal as the bloc’s economy has stagnated for six quarters.
Any monetary easing in Europe nevertheless remains conditional on the evolution of rates in the United States: too large a monetary differential between the two zones would weaken European assets and the euro, limiting the impact of the ECB’s rate cuts.
The markets therefore remain cautious and will remain attentive to the next publication of indicators and comments on monetary policy in the coming weeks.
VALUES
Renault finished at the top of the CAC 40, up 3.16%, after HSBC raised its price target on the stock.
Solutions 30 plunged 13.02%, as the digital services company’s online results did not offset concerns about the group’s growth and its debt.
Solvay rose 3.82% after the manager of Greenlight Capital, a hedge fund, said the group was one of his favorite allocations.
Volvo Cars gained 6.7%, as the group’s vehicle sales increased worldwide by 25% in March year-on-year, to 78,970 units, a record level for the Swede.
The British online supermarket chain Ocado fell 5.03% after announcing on Thursday that its president, Rick Haythornthwaite, would leave his post next year.
Delivery Hero jumped 14.5% after activist investor Sachem head took a 3.6% stake in the group.
A WALL STREET
Wall Street is moving forward after encouraging indicators, but investors remain cautious before Friday’s publication of the employment report.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.47% for the Dow Jones, compared to 0.74% for the Standard & Poor’s 500, and 0.95% for the Nasdaq Composite.
RATE
European long yields fell after encouraging indicators and a report from the ECB’s latest monetary policy meeting suggesting that the central bank is preparing to cut rates.
The yield on the German ten-year rate fell by 2.3 bps to 2.362%, while that of the two-year rate rose by 2 bps to 2.861%.
At the close of the European interest rate markets, the ten-year Treasury yield lost 1 bp to 4.3453%.
CHANGES
The dollar is falling as investors reassess the path of rates in the United States, which could fall more quickly than expected.
The dollar lost 0.21% against a basket of reference currencies, while the euro gained 0.26% to 1.0863 dollars. The pound sterling strengthened by 0.12% to 1.2666 dollars.
OIL
Crude is eroding in the absence of major catalysts, with the last OPEC+ meeting concluding without a new recommendation for a production cut.
Brent fell by 0.2% to $89.17 per barrel, American light crude (West Texas Intermediate, WTI) decreased by 0.35% to $85.13.
(Written by Corentin Chappron, edited by Sophie Louet)
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