European markets satisfied after US inflation

European markets satisfied after US inflation

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Paris (+0.74%) briefly regained 7,000 points for the first time in session since February 17, 2022. In Frankfurt, the Dax (+0.74) finished above 15,000 points for the first times since February 18. In Zurich, the SMI gained 0.37%.

Stock markets rose on Thursday after the publication of inflation figures in the United States, in line with economists’ expectations, comforting investors in their hopes for a less strict turn in monetary policies.

On the Old Continent, Paris (+0.74%) briefly regained 7,000 points for the first time in session since February 17, 2022. In Germany, the Dax index (+0.74) finished above the 15,000 points for the first time since February 18. In Zurich, the SMI gained 0.37%.

The FTSE 100, the main index of the London Stock Exchange, closed up 0.89% at 7794.04 points, a high in almost 5 years, approaching its all-time high of 7877.45 points at the closing, reached on May 22, 2018.

The London market benefits in particular from “the prospect of lower inflation” in the United States “and lower rates” on the bond market, according to Michael Hewson of CMC Markets.

On Wall Street, the indices were more mixed, as since the start of the year: the Dow Jones rose by 0.48%, the S&P 500 by 0.15% and the Nasdaq by 0.14% around 5:00 p.m. GMT.

Key statistic of the week, the consumer price index (CPI) slowed in December in the United States, to 6.5% year on year, as expected by economists, thus reaching its lowest level for 2022, according to the CPI index, which is a benchmark.

Market participants believe that these data will allow the US Federal Reserve to slow the pace of raising its key rates at its next meeting.

As a result, in the foreign exchange market, the dollar continued to weaken against other currencies. Around 4:45 p.m. GMT, it crossed the threshold of 1.08 dollars for one euro (1.0816, -0.54%) for the first time since April. It was also trading at its lowest since June against the yen.

Bitcoin jumped 3.19% to $18,120, after rising to $18,356, a month high.

In the bond market, yields declined sharply, with the US 10-year loan standing at 3.50%, down from 3.54% on Wednesday at the close.

Shareholder battle at Disney

Listed in the United States, Disney was wanted (+3.97%) the day after the communication from the board of directors, which said it was opposed to the appointment of investor Nelson Peltz as director. His investment company, Trian Fund Management, has recently taken a stake and is campaigning for short-term measures, in particular cost reduction.

Logitech and Ubisoft bug

The Swiss group Logitech, which specializes in computer accessories, has revised its annual forecast in the face of a drop in demand from companies and uncertainties regarding its supplies in China. The stock fell 16.87%.

In France, the action of the video game publisher Ubisoft fell sharply (-14.03%) after the lowering of its financial forecasts for the whole of the 2022-2023 financial year, due to the context of “deterioration macroeconomic conditions.

Lower interest rates benefit several sectors

The real estate sector, highly dependent on the level of interest rates, helped to boost the London market, with in particular the Persimmon (+8.33%) and Barratt Developments (+6.69%) groups at the top of the list. index, despite the announcement these days of a gloomy outlook for the sector.

Technology was also a winner, in Europe with Teleperformance (+3.99%) and Darktrace (+2.43%), but also in the United States with Meta (+2.01%) or Microsoft (+0.83% ).

On the oil side

Oil prices remained on the rise, still driven by the prospects of a recovery in Chinese demand after the country reopened, despite the strong accumulation of crude in the United States last week.

Around 4:35 p.m., a barrel of Brent from the North Sea for delivery in March took 1.83% to 84.19 dollars.

Its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in February gained 1.65% to 78.69 dollars.

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