2023-06-27 16:34:03
PARIS (Archyde.com) – European markets ended a turbulent session higher, as a set of indicators released on Tuesday showed the strength of the US economy despite the Federal Reserve’s monetary tightening. In Paris, the CAC 40 rose 0.43%, while the FTSE in London rose 0.11%. The Dax, in Frankfurt, recorded an increase of 0.21%. The pan-European FTSEurofirst 300 index gained 0.09%. The Stoxx 600 and EuroStoxx 50 posted very moderate gains of 0.05% and 0.01% respectively.
Most of the European stock markets started the session in the red, depressed by the “hawkish” statements of the world’s big moneymakers gathered until Wednesday at the annual forum of the European Central Bank.
The publication of several better-than-expected US economic indicators, however, reversed the trend by reassuring investors regarding the risks of a slowdown in US activity.
Consumer confidence is not eroding, while new home sales and durable goods orders are growing month on month, with consensus calling for a contraction for each of the two indicators.
These data lessen the prospect of a recession which would be detrimental to risky assets, but make a further rate hike by the Fed more credible during its next monetary policy meeting in July.
VALUES IN EUROPE
The number of customers and sales volumes of the British money transfer group Wise were higher than expected by the markets, which hoisted the group to the top of the Stoxx 600, up 16.4%.
SES Imagotag recorded for the second consecutive day the best performance of the SBF120, with a gain of 19.5%, the markets having found convincing the explanations of the group attacked Friday by a short seller.
Aston Martin lost 9.2%, following abandoning its sales target of 10,000 vehicles in 2025 in its report published on the occasion of its investor day on Tuesday.
The CAC 40 was driven by the financial sector, which would benefit from higher rates, and rose by 0.98%, while the energy sector posted the worst performance of the index once morest a backdrop of a fall in the oil prices, down 1.08%.
A WALL STREET US stock markets were up at the close of business in Europe, also supported by solid economic indicators.
The Dow Jones advanced 0.46% at 3:50 p.m. GMT, while the Standard & Poor’s 500 rose 0.68% and the Nasdaq Composite, 0.91%. RATES Short yields rose in Europe, the markets anticipating higher rates: the governors of the European Central Bank, gathered for the institution’s annual forum, thus pleaded for a more restrictive monetary policy. The German two-year yield rose 9.6bp to 3.2390%, while the ten-year rose to 2.3640%, up 6.4bp.
Good US economic data wards off the risk of a recession, an unfavorable scenario for rates whose yields were advancing at the close: the ten-year Treasury rose 5.3bp, to 3.7717%, while the two-year rate years gained 8bp, to 4.7513%. CHANGES THEeuro rose 0.49% to 1.0957 dollars, supported by the prospect of higher rates in Europe, while the pound sterling also advanced to 1.2751 dollars (+0.30%).
Conversely, the greenback declined by 0.22% once morest a basket of benchmark currencies. OIL Oil markets remained cautious ahead of the publication at 20:00 GMT of crude inventories in the United States by the American Petroleum Institute, data indicative of the resistance of American demand. Brent lost 1.28% to 73.21 dollars a barrel and US light crude (West Texas Intermediate, WTI) lost 1.23% to 68.52 dollars.
WEDNESDAY, JUNE 28:
(Written by Corentin Chapron, edited by Tangi Salaün)
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