Stocks head higher for the weekend


PARIS, June 24 (Reuters) – The main European stock markets rose at the start of Friday’s session for the last session of a week marked again by fears about the pace of global growth and inflation.

In Paris, the CAC 40 gained 1.12% to 5,949.47 points at 08:18 GMT. In London, the FTSE 100 takes 0.83% and in Frankfurt, the Dax advances by 0.53%. The EuroStoxx 50 index is up 0.99%, the FTSEurofirst 300 0.92% and the Stoxx 600 0.89%. The latter is up 0.4% on the week so far, which would mark its first positive weekly performance in four weeks. The benchmark European index had a yo-yo week marked by significant concerns about the impact of central bank policies on the global economy.

Some market participants are coming to believe that the risk of recession could lead certain issuing institutions to review the extent of their monetary tightening, especially since the recent decline in commodity prices could prove to be a good thing in the inflationary environment. “While market concerns about a sharp downturn are behind the pullback in commodity prices, this price drop gives the impression that it could be just what the doctor ordered for the global economy,” said Brian Daingerfield, NatWest Markets Strategist.

“Much of our economic hard landing fears are tied to commodity concerns.” Copper prices on the London Metal Exchange are heading for their worst weekly performance in a year and crude prices for a second week in the red. The easing in the government bond markets is also providing support for equities: the ten-year German fell four basis points to 1.401%, the lowest in two weeks, and its French equivalent fell by the same amount to 1.956%.

On the stock market, Zalando fell 13.16%, by far the biggest drop in the Stoxx 600, after issuing a warning on its results due to the deterioration of the macroeconomic context. The distribution sector thus lost 1.66%. Saipem sells 10.26%, the Italian energy services group having declared that it would have financial resources for less than a year if its capital increase project does not materialize.

(Written by Laetitia Volga, Editing by Kate Entringer)




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