by Claude Chendjou
PARIS (Reuters) – The main European stock markets ended higher on Wednesday and Wall Street was also in the green at mid-session, investors being relieved by the slowdown in services activity in the United States after a series of data these recent days which raised fears of overheating of the economy despite the desire of the Federal Reserve (Fed) to curb demand.
In Paris, the CAC 40 ended with a gain of 0.29% to 8,153.23 points. The German Dax advanced 0.5%. The British Footsie nibbled 0.03%, its rebound being limited by the fall of BT (-4.60%).
The EuroStoxx 50 index increased by 0.56%, the FTSEurofirst 300 by 0.31% and the Stoxx 600 by 0.33%.
At the close in Europe, the Dow Jones advanced by 0.1%, the Standard & Poor’s 500 by 0.28% and the Nasdaq by 0.39%, despite Intel’s plunge (-6.91%). , following a worsening of the operating losses of its foundry activity.
American indices are rebounding after two consecutive sessions of decline, while the upward trend in Europe accelerated after the publication in the afternoon of the ISM services index for the month of March in the United States.
This index stood at 51.4 points after 52.6 in February, the second consecutive slowdown in monthly terms after the sharp increase recorded in January, while the sub-index of prices paid by businesses fell to a four-year low. , to 53.4 after 58.6 in February.
“It (the ISM) is not as high as expected and since it is services data we can think that is a good thing,” comments Kim Forrest, investment director at Bokeh Capital Partners in Pittsburgh.
On the bond markets, long yields have stabilized after their sharp rise over the last two sessions.
The slowdown in inflation in the euro zone, to 2.4% over one year after 2.6% in February, also contributed to the good performance of equity markets in Europe.
Especially since Robert Holzmann and Pablo Hernandez de Cos, two members of the European Central Bank (ECB), confirmed the scenario of a probable drop in key rates in the bloc in June.
VALUES IN EUROPE
Nexity gained 4.25% after finalizing the sale of its property administration activities to Bridgepoint.
Soitec ended in the red (-0.70%), Morgan Stanley having gone from “overweight” to “online weighting” on the value.
Swiss Re lost 3.55% after the reinsurer announced the promotion of Andreas Berger to the post of general director of the group from July, replacing Christian Mumenthaler.
Infineon gained 2.4% thanks to Morgan Stanley’s recommendation to “overweight” the semiconductor manufacturer.
TODAY’S INDICATORS
The private sector in the United States created more jobs than expected in March, i.e. 184,000 after 155,000 in February, shows the monthly survey from the ADP firm, while the official employment report will be published on Friday.
The unemployment rate in the euro zone remained stable in February, at 6.5% of the working population, according to Eurostat.
The French state budget deficit stood at -44.032 billion euros at the end of February, according to data from the Ministry of Public Accounts.
Growth in services activity in China accelerated in March with the Caixin PMI at 52.7, the fifteenth consecutive month above the threshold of 50.
EXCHANGES The dollar index fell 0.43% against a basket of international currencies after its recent four-month high.
The greenback, however, remains firm against the yen, at 151.7 per dollar, despite the threat of intervention by the Japanese authorities to strengthen the yen.
The euro rose 0.53% to 1.0825 per dollar and the pound sterling traded at 1.2631 dollars (+0.43%).
RATE
The yield on the ten-year German Bund ended almost stable, at 2.396% after an increase of almost 12 points the day before.
That of US Treasury bills of the same maturity is also practically unchanged, at 4.3772% after a cumulative increase of almost 15 points on Monday and Tuesday.
OIL
Geopolitical risk and the maintenance of OPEC+ production quotas support oil prices
Brent rose 0.72% to $89.56 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.60% to $85.66.
(Written by Claude Chendjou)
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