PARIS (Reuters) – The main European stock markets are trending upwards on Friday morning in a context of optimism about the end of the rise in interest rates in the euro zone following the decisions of the European Central Bank (ECB) in awaiting those of the Federal Reserve (Fed) next week.
In Paris, the CAC 40 rose 1.27% to 7,401.25 points around 07:25 GMT. In London, the FTSE 100 rose 0.74% and in Frankfurt, the Dax gained 0.93%.
The EuroStoxx 50 index increased by 0.93%, the FTSEurofirst 300 by 0.86% and the Stoxx 600 by 0.87%.
Over the whole week, the CAC 40 gained 2.20% and the Stoxx 600 2.26%.
Futures contracts on Wall Street also foreshadow an increase the day after a session in the green marked by economic indicators, including monthly retail sales figures, which have removed the specter of a recession in the United States without postponing the reason is the pause expected next week on Fed rates before the final increase in the cost of credit expected in November.
In the euro zone, the ECB raised its deposit rate to 4% on Thursday, but signaled that its cycle of monetary tightening, the most aggressive since the creation of the institution, was probably coming to an end.
Citigroup analysts said on Friday that they now expect the ECB to cut rates in June 2024 instead of September 2024.
Other good news for the markets: industrial production and retail sales in China came out higher than expected for the month of August on Friday, suggesting that the measures taken by Beijing to support its economy are starting to bear fruit.
On the stock market, European stocks exposed to the Chinese market such as LVMH, Hermès and L’Oréal advanced from 1.76% to 2.93%.
In business news, the Swedish group H&M fell 4.4% after publishing quarterly turnover lower than expectations.
(Written by Claude Chendjou, edited by Blandine Hénault)
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