PARIS (Reuters) – European stock markets ended sharply higher on Friday and Wall Street rose mid-session, with shares benefiting from cheap buying after the sharp decline suffered since mid-August while the dollar suffered losses. profit.
In Paris, the CAC 40 gained 1.41% (86.43 points) to 6212.33 points, its best closing since August 29. In London, the FTSE 100 rose 1.23% and in Frankfurt, the Dax gained 1.43%.
The EuroStoxx 50 index ended up 1.64%, the FTSEurofirst 300 1.59% and the Stoxx 600 1.52%.
At the time of the close in Europe, Wall Street was also evolving in the green, the Dow Jones winning 1.07%, the Standard & Poor’s 500 1.36% and the Nasdaq Composite nearly 2%.
The major US stock market indices are thus heading towards a positive weekly performance after three weeks of decline against a backdrop of rising concerns about the slowdown in the global economy and inflation.
While the macroeconomic outlook has not fundamentally changed, news of an unexpected slowdown in inflation in China in August, which could facilitate further stimulus, was well received.
Next week will be marked in particular by the monthly inflation figures in the United States before the meeting of the Federal Reserve on September 20 and 21.
Over the week as a whole, the Stoxx 600 recovered 1.06% and the CAC 40 0.73%.
VALUES
In Europe, all the major sectors of the rating ended the day in the green, the best performance being for the raw materials sector, whose Stoxx index took 3.03% with the rise in base metal prices.
The high-tech segment gained 2.57% and that of the banks (+2.23%) continued its momentum on Thursday, the decisions of the European Central Bank (ECB) being considered favorable to the margins of the establishments of credit.
In Paris, Societe Generale gained 2.88%, BNP Paribas 2.61%.
CHANGES
On the currency market, the day was marked by a 0.63% drop in the dollar against other major currencies, as traders gave in to profit taking after the sustained rise recorded since mid-August.
The “dollar index” is thus heading towards a negative weekly performance after three weeks of gains which have taken it to its highest level in 20 years.
The euro is trading against 1.004 dollars (+0.46%) after rising at the start of the day to 1.0112, its highest level since August 18.
RATE
Yields on eurozone government bonds ended slightly lower, as the rapid rise sparked by the ECB’s announcements on Thursday came to a halt midday.
The two-year German thus returned to 1.315% after having reached its highest level since 2011 at 1.429% and the ten-year ended at 1.688% after a peak of almost three months at 1.796%.
The Italian 10-year, on the contrary, finished higher after reports that the ECB could start discussing the reduction of its balance sheet next month.
On the US bond market, the two-year rose to 3.5107% while the ten-year was almost stable at 3.283%. The inversion of the yield curve is therefore accentuated pending US inflation and the Fed meeting.
OIL
Oil is up sharply, buoyed by fears of a halt in Russian crude exports to the West, but remains on course for a second consecutive week of declines amid concerns over demand.
Brent gained 2.89% to 91.73 dollars a barrel and US light crude (West Texas Intermediate, WTI) 2.98% to 86.03 dollars.
(Written by Marc Angrand)