Southern European bond yields rose nearly 20 basis points after ECB officials questioned the idea of a pivot to looser monetary policies.
Bond yields in Europe rose sharply after statements from European Central Bank officials questioned the idea of a pivot to looser monetary policies, while calm continued to reign in equities.
Interest rates in southern European countries, such as Spain, Italy and Portugal, took nearly 20 basis points. Around 4:45 p.m. GMT, the yield on 10-year debt in Italy erased all of its decline for the week, rising to 3.84%.
The trend was the same, although less marked for Germany or France, while US government bond rates rose only moderately.
The chief economist of the European Central Bank Philip Lane estimated that wage growth will continue to fuel inflation in the euro zone, suggesting for investors a continuation of the institution’s rate hikes.
He supports the remarks revealed the day before by the influential member of the executive board of the ECB Isabel Schnabel, for whom a relaxation of the policy of the ECB is not on the agenda.
“It has shut down hopes of a pivot and put inflation concerns back in the spotlight,” ahead of November’s eurozone figures next week, according to Patrice Gautry, chief economist at Union Bancaire Privée. . Even “more moderate” figures would not allow a change in the institution’s position, according to him.
“While the United States descends from the mountain, we are trampling on the peak of inflation in Europe,” he notes.
On the equity market, the atmosphere was much calmer, like the whole of this week, marked by weak volumes due to the Thanksgiving holiday on Thursday in the United States.
On Friday, US markets will close at 6:00 p.m. GMT. Around 4:50 p.m. GMT, the Dow Jones advanced by 0.51%, the S&p500 by 0.07% while the Nasdaq fell by 0.40%.
In Europe, London ended up 0.27%, Paris 0.08%, Frankfurt 0.01% and Milan lost 0.05%. Over the week, these indices are all progressing. In Zurich, the SMI gained 0.09%.
Volleyball for Manchester
Manchester United shares continued to climb on Wall Street, by 14% around 4:45 p.m. GMT, an increase of nearly 65% over the week.
On Tuesday evening, the American owners of the English football club announced that they were considering selling the club. On Friday, Saudi Arabia said it would “undoubtedly” support offers from its private sector to buy historic English clubs Manchester United or Liverpool.
Bingo for Devro Casings
The British manufacturer of sausage casings Devro soared by more than 60% in London, after a takeover bid by the German Saria, which specializes in particular in the food industry, for 667 million pounds.
Credit Suisse at rock bottom
Credit Suisse shares hit a new all-time low in Zurich after details of its capital raise were released amid concerns over capital outflows by clients. The title fell more than 6.5%, with a low of 3.32 Swiss francs.
On the side of oil and currencies
Oil prices fell slightly, torn apart by debates on the price cap for Russian production, and confinements in China.
Around 4:45 p.m. GMT, the barrel of Brent from the North Sea for delivery in January fell 0.31% to 84.98 dollars, and that of American WTI at the same maturity 0.18% to 77.78 dollars.
On the foreign exchange market, the euro returned close to stability (-0.03%) to 1.0407 dollars and the pound fell 0.13% to 1.2098 dollars.
Bitcoin fell 0.44% to $16,470 at the same time.