by Laetitia Volga
PARIS (Reuters) – European stock markets ended higher on Friday and Wall Street also rose, buoyed by hopes of an agreement on the American debt ceiling.
In Paris, the CAC 40 gained 1.24% to 7,319.18 points. The British Footsie advanced 0.74% and the German Dax 1.2%.
The EuroStoxx 50 index gained 1.59%, the FTSEurofirst 300 1.28% and the Stoxx 600 1.15%. It was his best one-session performance in two months; the same for the Parisian market.
On Wall Street, which will be closed Monday for a holiday, the Dow Jones gained 0.8%, the S&P-500 1% and the Nasdaq Composite, at its highest since August, took 1.7%.
After several rounds of negotiations, US President Joe Biden and top Republican congressional leader Kevin McCarthy appear to be closing in on a deal to raise the debt limit.
The two sides’ positions are only $70 billion apart for discretionary spending, a person familiar with the negotiations said.
“I think we can all breathe through mid-June, although the market environment will likely become more volatile by then,” Invesco said. “Once this drama subsides, I think all eyes will once again be on central banks.
At the sector level, the European technology compartment (+2.97%) ended at its highest level since February 2022, still supported by forecasts from the Americans Nvidia and Marvell Technology. STMicro posted the biggest rise in the CAC 40, +3.84%.
Faurecia climbed 7.52%, thanks to Jefferies’ move to “buy”, and Coface gained 10.14% after its quarterly results.
After several days of suspension, Casino shares fell 6.43%, analysts pointing to the persistence of uncertainties about the heavily indebted distributor after the opening of official negotiations with its creditors.
The announcement in the United States of a bigger rise than expected in the PCE, global and core inflation indices reinforced in investors’ eyes the scenario of a further rise in the Fed’s rates in June.
As a result, government bond yields rise. That of ten-year Treasuries gained two basis points to 3.8372% and that of two years, very sensitive to rate expectations, more than ten points to 4.6117%, the highest since mid-March.
In their wake, the ten-year German Bund yield rose more than five points to 2.538%.
At foreign exchange, the dollar gleans 0.13% against a basket of currencies, including the euro, which falls to 1.0707.
In Turkey, the pound fell to an all-time low – at 20 to the dollar – ahead of Sunday’s run-off presidential election, which observers said should keep Recep Tayyip Erdogan in office for a third term.
On the oil market, Brent gained 0.93% to 76.97 dollars a barrel and American light crude (West Texas Intermediate, WTI) 1.18% to 72.68 dollars.
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(Written by Laetitia Volga, edited by Camille Raynaud)
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