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The European Stoxx 600 index gained 3.32%, the CAC 40 in Paris 3.55%
Wall Street continued its mid-session rebound
Investors want to believe in a negotiated solution to the conflict in Ukraine
Oil falls, bond yields rise by Marc Angrand
PARIS, Feb 25 (Reuters) – European equities posted their best performance in more than a year on Friday and erased almost all of their losses from the previous day, the scale considered weak by Western sanctions targeting Moscow and the evocation possible talks between Russia and Ukraine were enough to restore investor confidence despite the ongoing fighting.
In Paris, the CAC 40 .FCHI gained 3.55% (231.38 points) to 6,752.43 points. In London, the FTSE 100 .FTSE gained 3.91% and in Frankfurt, the Dax .GDAXI gained 3.67%.
The EuroStoxx 50 .STOXX50E index ended up 3.69%, the FTSEurofirst 300 .FTEU3 jumped 3.17% and the Stoxx 600 .STOXX rose 3.32%, its biggest rise in percentage over a session since November 2020. It had lost 3.83% on Thursday after the launch of the Russian offensive.
The rebound, already marked mid-session, accelerated after statements by the Kremlin spokesperson assuring that Russia was ready to send a delegation to Minsk, the capital of Belarus, for discussions with Ukraine.
Read also:
Russia ready to send a delegation to Minsk to discuss with Ukraine
At the same time, Kiev was still the target of Russian missiles and troops from Moscow continued their advance towards the Ukrainian capital.
Read also:
SYNTHESE-Kiev, bombarded, prepares for a Russian assault
Prior to Moscow’s statements, investors had already been reassured by the overall reduced scope of the sanctions against Russia, which for the moment avoid the exclusion of the latter from the international payment system SWIFT and eliminate in the short term any risk of rupture. supply of Russian natural gas to Europe.
At the time of the close in Europe, Wall Street was also evolving in the green, the Dow Jones .DJI winning 1.74%, the Standard & Poor’s 500 1.62% and the Nasdaq Composite .IXIC 1%.
Over the whole week, the CAC 40 lost 2.56% and the Stoxx 600 dropped 1.58%, its seventh negative weekly performance in eight weeks.
VALUES
The strongest sectoral increase of the day in Europe is for community services (“‘utilities”), benefited both by their defensive nature and their ability to take advantage of a diversification of the continent’s energy supplies to reduce dependence on electricity. Russia.
The Stoxx .SX6P sector index gained 4.75%, RWE RWEG.DE 6.07%, Enel ENEI.MI 5.77%, Engie ENGIE.PA 5.1% and EDF EDF.PA 5.76%.
The banking compartment meanwhile rebounded 4.27% .SX7P .
Defense stocks remained surrounded, like the French Thales TCFP.PA (+4.10%) or the British BAE Systems BAES.L (+3.36%).
In earnings news, Valeo VLOF.PA fell 10.46% after analysts deemed disappointing medium-term forecasts and Casino CASP.PA fell 12.29% after lower earnings and higher revenue. debt in 2021
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Saint-Gobain SGOB.PA on the contrary gained 6.35% after a record financial year.
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Saint-Gobain wants to take advantage of the renovation market after a record year
In Frankfurt, Volkswagen VOWG_p.DE and Porsche SE PSHG_p.DE gained 5.24% and 3.77% respectively after details of their agreement on a possible Porsche AG IPO were presented.
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THE INDICATORS OF THE DAY
In the United States, household consumption expenditure increased more than expected in January (+2.1%), which could support growth in gross domestic product (GDP), but inflationary pressures have increased further, the PCE price index posting its strongest annual increase since 1982 (+6.1%).
Read also:
USA-Consumer spending beats expectations in January
In addition, durable goods orders excluding defense and aeronautics, considered a good barometer of business investment, rose 0.9% last month.
The morale of American households has deteriorated to its lowest level since 2011 according to the monthly survey from the University of Michigan.
Read also:
USA-Household morale at lowest since 2011-Michigan
RATE
European bond yields ended up sharply in the wake of those of US Treasuries: that of the ten-year German Bund DE10YT=RR , benchmark for the euro zone, posted a rebound of five basis points at the end of the session at 0.219%, returning to its level of Wednesday, and its French equivalent FR10YT=RR rose almost as much to 0.708%.
Investors are now waiting to know to what extent the conflict in Ukraine will influence the policy of the European Central Bank. The president of the institution, Christine Lagarde, assured that the ECB was ready to do what is necessary to ensure price stability and financial stability but it will be necessary to wait until March 10 to know its new economic forecasts.
In the US market, the ten-year US10YT=RR was trading at 1.9774% at the European close after rising to 2.016% just after the release of the PCE price index.
CHANGES
The dollar is down sharply against other major currencies .DXY (-0.40%) the day after its largest percentage increase in more than three months (+0.99%).
This decline is explained by the general revival of risk appetite but also by the fact that in the eyes of some forex traders, the figures for household income and expenditure could encourage the Federal Reserve to moderate in terms of monetary policy next month.
OIL
The relief on geopolitical tensions which favored the rebound in equities is also reflected in a drop in oil prices, while the trend was up at the start of the session: Brent fell 2.5% to $96.60 on barrel LCOc1 and US light crude (West Texas Intermediate, WTI) 2.14% to 90.82 dollars CLc1.
They had risen to $101.99 and $95.64 earlier in the day.
TO BE FOLLOWED MONDAY: nL8N2V076B
LA SITUATION SUR LES MARCHÉS:
(Certaines données peuvent accuser un léger décalage)
LA CLÔTURE EN EUROPE
Indices Dernier Var. Var. % YTD
Points
Eurofirst 300 1775,07 +54,47 +3,17% -6,09%
.FTEU3
Eurostoxx 50 3970,69 +141,40 +3,69% -7,62%
.STOXX50E
CAC 40 .FCHI 6752,43 +231,38 +3,55% -5,60%
Dax 30 14567,2 +515,13 +3,67% -8,29%
.GDAXI 3
FTSE .FTSE 7488,58 +281,20 +3,90% +1,41%
SMI .SSMI 11987,3 +350,55 +3,01% -6,90%
1
Les valeurs à suivre à Paris et
en Europe : WATCH/LFR
LA TENDANCE A WALL STREET
Indices Dernier Var. Var. % YTD
Points
Dow Jones 33834,2 +610,40 +1,84% -6,89%
.DJI 3
S&P-500 4364,08 +75,38 +1,76% -8,44%
.SPX
Nasdaq .IXIC 13635,8 +162,24 +1,20% -12,84
2 %
Nasdaq 100 14144,3 +169,63 +1,21% -13,33
.NDX 0 %
Compte rendu de la séance à
Wall Street : .NFR
"The Day Ahead" - Le point sur la
prochaine séance à Wall Street DAY/US
CHANGES
Cours Veille Var.% YTD
Euro/Dlr 1,1259 1,1191 +0,61% -0,96%
EUR=
Dlr/Yen JPY= 115,62 115,52 +0,09% +0,49%
Euro/Yen 130,20 129,29 +0,70% -0,11%
EURJPY=
Dlr/CHF CHF= 0,9271 0,9259 +0,13% +1,63%
Euro/CHF 1,0441 1,0360 +0,78% +0,69%
EURCHF=
Stg/Dlr GBP= 1,3410 1,3375 +0,26% -0,89%
Indice $ 96,7440 97,1370 -0,40% +0,59%
.DXY
OR
Cours Veille Var. % YTD
Or Spot XAU= 1883,93 1903,14 -1,01% +24,19
%
TAUX
Dernier Var. Spread/Bund
(pts)
Future Bund 165,95 -0,98
FGBLc1
Bund 10 ans 0,23 +0,00
DE10YT=RR
Bund 2 ans -0,38 -0,00
DE2YT=RR
OAT 10 ans 0,71 +0,00 +48,30
FR10YT=RR
Treasury 10 1,98 +0,01
ans
US10YT=RR
Treasury 2 ans 1,60 +0,05
US2YT=RR
PETROLE
Cours Précéde Var Var.% YTD
nt
Brut léger US 90,75 92,81 -2,06 -2,22% +48,26%
CLc1
Brent LCOc1 96,60 99,08 -2,48 -2,50% +46,30%
((Rédaction de Paris 01 49 49 50 00;))
((Les valeurs à suivre à la Bourse de Paris et en Europe WATCH/LFR ))