PARIS (Reuters) – European stock markets ended mixed on Friday, as markets continued to reassess the rate trajectory of central banks in developed countries, while several monetary policy meetings will be held in the coming weeks.
In Paris, the CAC 40 lost 0.4% to 7,371.64 points, while the German Dax finished stable, like the British Footsie.
The EuroStoxx 50 index ended the session down 0.12%, compared to 0.23% for the FTSEurofirst 300 and 0.26% for the Stoxx 600.
Over the week, the CAC40 lost 1.25% and the Stoxx 600 1.58%.
Investors continue to revise downward their rate cut prospects for 2024.
Money markets are now betting that the European Central Bank will ease monetary policy by just 126 basis points this year, compared to 150 basis points hoped for in December.
This repositioning, triggered by a burst of data showing the resistance of inflation in the euro zone and the United States, and by numerous restrictive comments from central bankers, weighs on risky assets positioned for a return of inflation to its target without significant impact on growth.
The meeting of the ECB, which will be held on Thursday January 25, and that of the Federal Reserve, which will take place on January 31, both call for caution.
In the United States, consumer confidence surprised sharply to the upside, while Alan Goolsbee, member of the board of governors, warned that the Fed would need to have more data before considering rate cuts.
VALUES
Tech posted the best sectoral performance of the Stoxx 600, in the wake of the rise in semiconductor-related stocks, after server manufacturer Super Micro Computer raised its outlook for the second quarter. The sector grew by 0.59%, compared to 0.5% for STMicroelectronics, 1.52% for ASML and 0.26% for Infineon.
Teleperformance advanced 8.61% after Stifel raised its recommendation to “buy”.
Atos fell 7.71% after S&P 500 lowered the group’s credit rating from BB- to B- on Friday.
KBC Group gained 2.54%, Morgan Stanley having raised its recommendation on the Belgian group to “overweight”.
Ericsson and Nokia fell 3.99% and 2.89% after Barclays lowered its recommendation from “online weight” to “underweight”, citing “significant slowness” in the rollout of 5G in India and a decline in investment in telecommunications.
A WALL STREET
Wall Street advances at closing time in Europe, with technology supporting indices for the second consecutive session.
Trading on the New York Stock Exchange indicated an increase of 0.33% for the Dow Jones, against 0.44% for the Standard & Poor’s 500, which could reach an all-time high, and 0.49% for the Nasdaq Composite.
RATE
Yields closed higher after a stronger-than-expected US consumer confidence indicator and comments from monetary policymakers.
At the close of the rate markets in Europe, the ten-year Treasury yield rose 1.9 bp to 4.1629%, compared to 4.2 bp for the two-year rate, to 4.3994%.
The German ten-year yield remained stable at 2.306%, while the two-year yield rose 4.5 bps to 2.73%.
CHANGES
The pound is falling after retail sales fell 3.2% in December, suggesting that the British economy may have contracted in the final quarter of 2023.
The dollar lost 0.16% against a basket of reference currencies, while the euro gained 0.08% to 1.0883 dollars. The pound sterling fell 0.26% to $1.2672.
OIL
Crude prices are falling in an uncertain context regarding the trajectory of economies.
Brent eroded by 0.13% to $79 per barrel, American light crude (West Texas Intermediate, WTI) by 0.12% to $73.99.
TO BE CONTINUED ON MONDAY: [USN agenda du lendemain]
(Written by Corentin Chappron, edited by Sophie Louet)
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