(CercleFinance.com) – European stock markets posted gains this Friday (+0.6% in London, +0.4% in Frankfurt, +0.7% in Paris), in the wake of US equity indices the day before who took advantage of a report on US inflation deemed reassuring.
The Department of Labor has indeed announced that the consumer price index of the United States increased only by 6.5% in December 2022 in annual variation, a lowest since October 2021, and by 5.7 % excluding energy and food products.
‘Disinflation continues at the expected pace’, commented Axel Botte, Ostrum AM’s international strategist. ‘The market remains convinced that the Fed will not raise its rates as much as it indicated in the December projections,’ he added.
Frankfurt, however, remains a little behind other European markets, while according to initial calculations by Destatis, German GDP in volume for the year 2022 was 1.9% higher than that of the previous year.
‘The stagnation of German GDP in the fourth quarter shows that high inflation has not spared the German economy’, points out Commerzbank, for whom ‘a slight recession with a drop of 0.5% in real GDP remains probable’ in 2023 .
All eyes must now turn to the start of the US earnings season which must be given in the middle of the session, as traditionally, by banks such as JPMorgan Chase, Bank of America or Citigroup.
In the meantime, Ericsson loses 3% on the OMX, the day after the announcement by the telecom equipment manufacturer of a provision of 2.3 billion Swedish crowns which will be taken due to a procedure with the Department of Justice the United States.
Air France-KLM jumped nearly 7% in Paris, surrounded after an increase in recommendation from ‘neutral’ to ‘buy’ at UBS, with a price target raised from 1.75 to two euros on the title of the French air carrier -Dutch.
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