PARIS (Reuters) – The main European stock markets are moving up on Friday morning, again supported by the prospect of a lull in central bank rates, as well as solid results from companies in Europe such as Hermès before the publication of financial accounts. major US banks.

In Paris, the CAC 40, which is evolving on records for the fourth session in a row, takes 0.38% to 7,509.05 points around 07:55 GMT. In London, the FTSE 100 advances by 0.14% and in Frankfurt, the Dax gains 0.48%.

The EuroStoxx 50 index rose by 0.39%, the FTSEurofirst 300 by 0.28% and the Stoxx 600 by 0.47%.

Futures contracts on Wall Street foreshadow a pause, the day after a session in the green marked by the hope of an imminent end to the tightening of the American Federal Reserve (Fed).

Markets are pricing in a 68% probability of a 25 basis point Fed rate hike in May and virtually zero probability of further hikes in the cost of credit beyond that date. A rate cut of 50 basis points is even expected at the end of the year, according to the FedWatch barometer.

The prospect of a lull in borrowing costs was bolstered by Friday’s decision by the Monetary Authority of Singapore (MAS) not to touch its rates for the first time since April 2021. Ahead of the Singapore central bank, the Bank of Canada (BoC), that of Australia and that of South Korea had also opted for the status quo on rates.

Pending the entry into the running of major US banks such as JPMorgan, Citigroup and Wells Fargo, several results of companies in Europe are animating discussions.

In the luxury compartment, Hermès took 1.27% after reporting a 23% increase in its turnover at constant exchange rates in the first quarter. The title of the manufacturer of Birkin bags hit a historic high at 1,984.6 euros, while its competitor LVMH, which also published better-than-expected sales on Wednesday, advanced another 0.74%, also breaking a new record. at 894.5 euros.

Kering (+1.35%) and Burberry (+1.01%) are also in demand, while the consumer cyclical sector (+0.77%) posted the second strongest rise in the Stoxx 600 behind real estate ( +1.89%) which benefits from the prospect of a break in interest rates.

At the bottom of the CAC 40, Alstom fell 4.33% with the announced departure of its financial director Laurent Martinez at Orange (-0.54%).

Elsewhere in Europe, Dutch navigation and digital mapping specialist TomTom jumped 7.12% after reporting better-than-expected first-quarter sales, while UK retailer of electrical appliances AO World soared 11.16% after raising its annual profit forecast.

In terms of mergers and acquisitions, the animal health specialist Dechra climbed 35.80% after the announcement of discussions with the Swedish private equity group EQT with a view to a possible sale for 4.63 billion pounds (5 .24 billion euros).

(Written by Claude Chendjou, edited by Kate Entringer)

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