PARIS (Reuters) – European stock markets ended up on Wednesday, driven by luxury and distribution stocks, which Paris particularly benefited from, but Wall Street fell mid-session, the resistance of the American economy put in light by a new series of statistics fueling fears of a continuation of rate hikes by the Federal Reserve.

In Paris, the CAC 40 gained 1.21% to 7,300.86 points, the highest since its records of January 2022. The British Footsie gained 0.55% and the German Dax ended on an increase of 0.82 %.

The EuroStoxx 50 index gained 0.97%, the FTSEurofirst 300 0.55% and the Stoxx 600 0.42%.

The gains in Europe contrast with the decline seen on Wall Street, where the major indices were down about 0.5% at the close.

After the announcement on Tuesday of a monthly acceleration in inflation in the United States, the stronger than expected rebound in retail sales in January (+3%) fuels speculation among observers that the Fed will raise rates for longer to slow down the economy.

“The risks increase astronomically of the Fed losing patience and making recession expectations a reality by raising interest rates too high,” said Christopher Rupkey, chief economist at FWDBONDS.

VALUES

The large distribution groups Carrefour and Ahold Delhaize jumped 8.50% and 8.02% respectively after the publication of solid results.

Kering gained 3.03% as the owner of the Gucci and Saint Laurent brands reported a “very encouraging” start to the year in China following the end of China’s “zero COVID” policy.

In its wake, LVMH gained 1.49%. The world leader in the luxury industry has also announced the appointment of singer Pharrell Williams as head of artistic direction for Louis Vuitton’s men’s collections.

A red lantern in the Stoxx 600, Barclays fell 7.86% as the British bank’s full-year profit was hit by rising costs, lower transaction fees and a brokerage error.

CHANGES

The dollar is rising against a basket of major currencies (+0.68%) and hitting a six-week high, with a majority of traders betting on a higher final Fed rate as inflation remains high in the United States. United.

The euro thus fell to 1.0682 dollars (-0.49%).

The pound is down more than 1% against the dollar as Britain’s consumer price index rose less than expected in January, according to figures from the Office for National Statistics, which also show an easing of inflationary pressures in services, a parameter closely monitored by the Bank of England.

RATE

Benchmark bond yields in Europe and the United States are rising: the German ten-year ended at its highest since early January at 2.475% and the American ten-year rose four basis points to 3.7972%.

OIL

Oil prices are in the red after the latest figures from the Energy Information Administration showing a much stronger than expected increase in inventories in the United States last week, to 16.3 million barrels.

Brent lost 1.58% to 84.23 dollars a barrel and American light crude (West Texas Intermediate, WTI) 1.91% to 77.55 dollars.

(Laetitia Volga, edited by Bertrand Boucey)

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