PARIS (Reuters) – The main European stock markets rose at the start of the session on Friday, supported by an easing of measures against the COVID-19 in China and by the hope of a slowdown in the monetary tightening of the Federal Reserve (Fed) after the latest US inflation figures
In Paris, the CAC 40 gained 1.01% to 6,623.31 points around 09:05 GMT. In London, the FTSE 100 takes 0.4% and in Frankfurt, the Dax advances by 0.65%.
The EuroStoxx 50 index is up 0.92%, the FTSEurofirst 300 0.65% and the Stoxx 600 0.64%.
Chinese places have accelerated their progress after the decision of the health authorities to lighten certain measures intended to limit the spread of the coronavirus in China, in particular by shortening the duration of quarantine for contact cases and travelers from abroad.
The CSI 300 index gained 2.79% and the Hang Seng in Hong Kong jumped 7.74%, its biggest single-session rise since March, with technology and property stocks leading.
In Europe, the basic resources sector (+2.17%) and luxury groups, an industry very exposed to China, also benefit: Hermès, LVMH and Kering gain from 2.20% to 3.30% .
The sector is also supported by the well-received results of the Swiss Richemont (+13%), the owner of Cartier having reported results deemed solid in the first half.
The favorable orientation of the market can also be explained by Thursday’s announcement of a greater than expected slowdown in inflation in the United States in October, which could encourage the Fed to opt for rate hikes. lower rates.
Fed funds rate futures suggest markets are pricing a 73.5% chance of a half-point rate hike in December.
“Inflation data will make it easier for the Fed to justify a more modest 50 basis point hike next month,” said Mark Haefele at UBS Global Wealth Management.
“But we still think the Fed is likely to raise rates by at least another 100 basis points in total before pausing the monetary tightening cycle,” the economist added.
(Laetitia Volga)