by Claude Chendjou
PARIS (Reuters) – European stocks ended in the green and Wall Street was also higher at the end of the day in New York, the session being volatile after the monthly consumer price figures in the United States which showed an acceleration stronger-than-expected inflation, raising fears of significant monetary tightening next month.
In Paris, the CAC 40 ended up 1.04% at 5,879.19 points. Britain’s Footsie advanced 0.35% and Germany’s Dax gained 1.51%.
The EuroStoxx 50 index gained 0.93%, the FTSEurofirst 300 0.77% and the Stoxx 600 0.85%.
The rebound in the equity markets in Europe took place a few minutes before the close after six consecutive sessions of decline, while the indices evolved in the red for a good part of the trade.
This reversal was fueled by Wall Street where the S&P-500 index, which fell in session to a near two-year low, and the Dow Jones, at its lowest since November 2020, returned to the green once digested. US inflation figures.
The US Labor Department said the CPI consumer price index accelerated to 0.4% in September and 8.2% year on year, while the “core CPI”, which measures inflation from basis, emerged with a monthly gain of 0.6% and 6.6% on an annual basis.
Economists polled by Reuters on average were forecasting increases for the CPI of 0.2% and 8.1%, and for the core CPI of 0.5% and 6.5% respectively.
Traders are pricing in a 91% chance of a fourth straight 75 bps hike in the cost of credit on November 2, while the chance of a 100 basis point hike is put at 9%.
In Europe, where a sharp rise in rates is also expected next month, inflation in Germany was confirmed on Thursday to be up 10.9% year on year in September.
SECURITIES IN EUROPE The technical rebound in Europe primarily benefited the transport and leisure segment (+3.44%), while that of food and beverages (-1.13%) showed the most decline .
In individual stocks, Airbus (+3.91%), Safran (+4.85%) and Alstom (+3.91%) formed the top tier on the CAC 40. In contrast, Pernod Ricard (- 2.54%) and the luxury groups Hermes (-2.29%), LVMH (-0.71%) and Kering (-0.51%) were among the stocks at the bottom of the pack.
Elsewhere in Europe, Monte dei Paschi di Siena (MPS) plunged 33.14%. The Italian bank presented Thursday the terms of its capital increase scheduled for next week, which should allow it to raise up to 2.5 billion euros in capital.
Norwegian aluminum producer Norsk Hydro, up 6.74 percent, was lifted by news reports that Washington is considering restricting imports of Russian aluminum.
AT WALL STREET
At the close in Europe, the Dow Jones advanced 1.71%, the Standard & Poor’s 500 1.31% and the Nasdaq 0.81%
Releases of corporate financial accounts drive the trend as analysts expect quarterly profit for S&P companies to rise just 4.1% from 11.1% in the three months to July, according to data from Refinitiv.
Applied Materials takes 2.98% despite a warning about the impact of new US restrictions on exports to China.
The world’s number one asset management company Blackrock is up 2.93% and the airline Delta Air Lines is up 3.83% after their results.
CHANGES
The dollar fell 0.94% against a basket of benchmark currencies despite the stronger-than-expected rise in US inflation.
The euro took advantage of this to return to 0.9765 dollars (+0.63%).
The pound sterling took 2% to 1.1321 dollar on the eve of the stopping of emergency purchases by the Bank of England.
RATE
Bond yields in Europe ended lower after a volatile session. According to some analysts, like Christoph Rieger of Commerzbank, the bond market was torn between US inflation figures and reports that the UK government is considering revising its plan for massive tax cuts presented last month. last.
The ten-year German Bund yield fell 4.7 basis points to 2.296%.
That of the British Gilt of the same maturity fell 20.9 points to 4.22%.
OIL
Oil prices are on the rise again, with the US Energy Information Agency (EIA) reporting that distillate inventories fell 4.9 million barrels in the week ending October 7, to 106.1 million barrels, the lowest level since May, when a drop of only two million barrels was expected.
Brent rose 2.06% to 94.35 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.13% to 89.13 dollars.
TO BE FOLLOWED ON FRIDAY:
Publication at 12:30 GMT of retail sales statistics in the United States for the month of September.
THE MARKET SITUATION:
(Some data may show a slight shift)
THE FENCE IN
EUROPE
Indices Last Var. Var. %YTD
Points
Eurofirst 300 1543.50 +11.77 +0.77% -18.34%
Eurostoxx 50 3362.40 +30.87 +0.93% -21.78%
CAC 40 5,879.19 +60.72 +1.04% -17.81%
Dax 30 12,355.58 +183.32 +1.51% -22.22%
FTSE 6850.27 +24.12 +0.35% -7.23%
SMI 10227.90 +28.58 +0.28% -20.56%
The values to follow
Paris and Europe:
[WATCH/LFR]
THE TREND TO
WALL STREET
Indices Last Var. Var. %YTD
Points
Dow Jones 29744.54 +533.69 +1.83% -18.15%
S&P-500 3626.80 +49.77 +1.39% -23.91%
Nasdaq 10508.80 +91.70 +0.88% -32.83%
Nasdaq 100 10888.08 +102.46 +0.95% -33.28%
Minutes of the meeting at
Wall Street: [.NFR]
“The Day Ahead” – Update on the
next session on Wall Street [DAY/US]
CHANGES
Standby Price Var.% YTD
Euro/Dlr 0.9776 0.9704 +0.74% -14.00%
DLR/Yen 147.08 146.91 +0.12% +27.83%
Euro/Yen 143.81 142.54 +0.89% +10.35%
Dlr/CHF 0.9996 0.9973 +0.23% +9.58%
Euro/CHF 0.9774 0.9679 +0.98% -5.74%
Stg/Dlr 1.1329 1.1103 +2.04% -16.26%
Index $ 112.4180 113.3200 -0.80% +16.89%
GOLD
Var. %YTD
Gold Spot 1666.01 1672.51 -0.39% +9.82%
RATE
Last Var. Spread/Bund
(pts)
Future Bunds 136.81 +0.97
10-year Bunds 2.28 -0.01
Bund 2 years 1.90 -0.01
10-year OATs 2.87 -0.02 +59.00
10-year Treasury 3.95 +0.05
Treasury 2 years 4.43 +0.14
OIL
Previous Price Var. Var.% YTD
US light crude 88.89 87.27 +1.62 +1.86% +45.22%
Brent 94.12 92.45 +1.67 +1.81% +42.54%
(Written by Claude Chendjou, edited by Sophie Louet)
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