Stock market Europe ends in the green with cyclical stocks

by Claude Chendjou

PARIS (Reuters) – European stock markets ended higher on Monday and Wall Street was practically unchanged at the end of the morning in New York, in a session without much conviction pending American inflation and decisions from the European Central Bank (ECB) during the week.

In Paris, the CAC 40 gained 0.72% to 8,119.3 points. The British Footsie advanced 0.41% and the German Dax rose 0.77%.

The EuroStoxx 50 index gained 0.62%, the FTSEurofirst 300 0.45% and the Stoxx 600 0.47%.

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At the close in Europe, the three main indices on Wall Street are almost stable while Wells Fargo raised its price target for the S&P 500 from 4,625 points to 5,535 points by the end of the year.

The positive trend on equity markets in Europe was fueled by cyclical compartments such as basic resources (+1.98%), automobiles (+1.32%) and industrial goods and services (+0.82 %) while industrial production in Germany increased more than expected in February, by 2.1% over one month, reviving the prospect of an economic rebound on the Old Continent.

In the United States, cheap purchases of growth stocks like Tesla (+4.60%) or Alphabet (+1.23%) offset the pressure exerted by the continued rise in long-term bond yields.

At the time of closing in Europe, eight of the 11 main S&P 500 indices were in the green, with so-called non-essential consumption (+0.78%) achieving the best performance.

A sign of a calm stock market, the index measuring volatility in the United States fell by 2.37%, to 15.65 points, while its European equivalent ended down by 3.7%, to 15.52. points.

Investors are mainly interested in Thursday’s monetary policy meeting of the ECB and Wednesday’s publication of monthly consumer prices in the United States, while on Friday the major American banks will open the ball of the quarterly results season.

VALUES IN EUROPE

In Paris, Vivendi ended in the red (-0.24%) after a firm offer from its subsidiary Canal+ for the remaining capital of the South African broadcaster MultiChoice.

On the SBF 120, Believe fell by 9.21%, Warner Music having announced on Saturday that it would not submit a purchase offer for the French group, while Atos, at the top of the index, soared by 18 .92% after Butler Industries’ decision on Sunday to take part in the computer group’s rescue plan.

In Frankfurt, Bayer dropped 0.4% after a court decision in the United States on the weedkiller Roundup, accused of being carcinogenic, while Zalando jumped 7.39% thanks to the increase in Citigroup’s recommendation. to buy”.

TODAY’S INDICATORS

Investor morale in the euro zone, measured by the Sentix index, reached a two-year high in April, going from -10.5 in March to -5.9.

RATE

The yield on ten-year US Treasury bonds rose more than five basis points to 4.4319%, while money markets now only expect a 48% probability of a drop in borrowing costs in June. compared to a probability of 59% a week ago.

In the euro zone, the yield on the ten-year German Bund ended up around four basis points, at 2.437%.

CHANGES

The dollar fell 0.16% against a basket of reference currencies, with some currency traders estimating that the Fed could lower its rates well after the other central banks given the current strength of the American economy.

The euro, up 0.14%, is trading at $1.085, while the pound sterling is trading at $1.2648 (+0.09%).

GOLD

Spot gold set a new record at $2,353.79 per ounce before falling 0.06% to $2,328.195 at the close of trading in Europe.

OIL

Oil prices are penalized by the announcement on Sunday of the partial withdrawal of the Israeli army from the Gaza Strip, while ceasefire negotiations have resumed in Cairo.

Brent dropped 1.67% to $89.65 per barrel and American light crude (West Texas Intermediate, WTI) fell 1.48% to $85.62.

(Written by Claude Chendjou, edited by Sophie Louet)