Global Stock Markets Rise on Positive US Economic Indicators: Milan, Paris, Frankfurt, and London Gain

2023-06-27 16:43:56

Milan closed up 0.58%, Paris 0.43%, Frankfurt 0.21% and London 0.11%. In Zurich, the SMI gleans marginally 0.01%.

Global stock markets rose on Tuesday, driven by several indicators showing that the US economy remains solid, at a time when investors doubt the strength of growth in the world.

Wall Street was moving in the green: around 3:50 p.m. GMT, the Dow Jones took 0.44%, the Nasdaq 0.90% and the S&P 500 rose 0.61%.

Hesitant for a long time, the European markets finally took the same path: Milan gained 0.58%, Paris 0.43%, Frankfurt 0.21% and London 0.11%. In Zurich, the SMI gained marginally 0.01%.

US consumer confidence, the main driver of growth, rose once more in June, much more than expected, following falling the previous month to its lowest level since November, with current conditions looking better than before. , according to the index published by the Conference Board.

Moreover, sales of new homes continued to rise in May, but their prices continued to slow, while durable goods orders continued to rise.

The American markets, following very dynamic weeks, had marked time last week in the face of the still martial tone of the central bankers once morest inflation.

The prospect of still-vigorous growth and a firm response from the central banks sent government interest rates up once more. The rate of the 10-year American loan rose to 3.76% around 3:40 p.m. GMT, once morest 3.72% on Monday, and the German at 2.35% once morest 2.31% on Monday.

On Tuesday, during her institution’s forum in Sintra (Portugal), the President of the European Central Bank (ECB), Christine Lagarde, once more assured that “unless there is a significant change in (its) outlook”, the ECB would continue “the rate hike in July”.

On Wednesday, Ms. Lagarde will speak once more, along with the president of the American central bank (Fed), Jerome Powell, and the governor of the Bank of England (BoE), Andrew Bailey.

But investors were also able to be satisfied on Tuesday with the new slowdown in inflation in Canada in May (3.4% over one year), in line with expectations.

In the United States, the PCE index, the Fed’s preferred measure for gauging the country’s inflation, will be published on Friday for the month of May.

Airlines fly away

In terms of values, the airline Delta took off (+3.70%), following having raised its forecasts for the whole of its financial year thanks to an increase in demand and a drop in the cost of fuel. This also benefited other companies, such as American Airlines (+4.41%) and United Airlines (+4.22%).

The travel sector followed suit, with cruise passengers in particular: a jump of 6.30% for Carnival and 3.35% for Royal Caribbean.

In Europe, Lufthansa has a price of 2.89%, IAG 2.61%, Air-France-KLM 1.46%.

Kering buys Creed

The luxury group Kering, which has set its sights on the “high perfumery house” Creed, is betting on this acquisition to allow its new beauty division to reach critical size in a very lucrative and rapidly growing market. The action gained 0.66%, progressing in the same proportions as the other stocks in the sector.

Luxury had jumped more strongly in early trade in Europe, boosted by China’s good growth prospects outlined on Tuesday by Chinese Premier Li Qiang.

On the side of oil, the euro and bitcoin

Oil prices are falling as worries regarding potential supply disruptions from Russia are overtaken by those regarding global economic activity due to high interest rates.

The barrel of Brent from the North Sea, for delivery in August, fell 0.89% to 73.52 dollars around 3:30 p.m. GMT. Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery the same month, also lost 0.89% to 68.75 dollars.

The price of the benchmark European contract for natural gas, the Dutch TTF, took 9.46% to 35 euros.

The euro advanced 0.50% to 1.0961 dollars.

Bitcoin gained 1.50% to $30,620.

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