by Diana Mandia

(Reuters) – European stock markets ended the week higher, posting their best weekly performance in two months, thanks to hopes that the European Central Bank (ECB) will end its cycle of rate hikes and data suggesting that the Chinese economy could regain some momentum.

In Paris, the CAC 40 ended up 0.96% at 7,378.82 points. The British Footsie gained 0.5% and the German Dax 0.56%.

The EuroStoxx 50 index gained 0.36%, the FTSEurofirst 300 0.3% and the Stoxx 600 0.28%.

Over the week, the CAC gained 1.9% and the Stoxx 600 1.6%.

The possibility of an imminent end to the ECB’s monetary tightening cycle became more tangible after the announcement of the tenth euro zone rate hike on Thursday, a prospect which supported equity markets and appetite on Friday. for risk.

The ECB raised interest rates on Thursday in the face of persistent inflationary pressures, while signaling that this cycle of monetary tightening was likely coming to an end.

Optimism remains after the announcement, although several ECB officials, including its president Christine Lagarde, said on Friday that the institution would keep interest rates high for an extended period and could even raise them again if necessary.

French Economy and Finance Minister Bruno Le Maire said in an interview with Bloomberg TV on Friday that Frankfurt should refrain from further raising rates while the euro zone was on track to reduce lending. ‘inflation.

Macroeconomic data from China, despite lingering concerns over the real estate sector, is helping to support stocks exposed to the world’s second-largest economy. Industrial production and retail sales in August came in higher than expected on Friday, suggesting that Beijing’s measures to support its economy are starting to bear fruit.


European stocks exposed to the Chinese market such as LVMH, Hermès, Kering

Optimism on China also helped basic resources, whose compartment rose 1.3%.

The technology sector, on the other hand, suffered (-1.3%), with ASML losing 3.4% and BE Semiconductors 4.7% after Reuters reported that Taiwanese semiconductor maker TSMC asked its principals suppliers to delay equipment deliveries.

A lowering of the stock recommendation by UBS also weighed on ASMI (-6.5%).

The Swedish group H&M fell 7.3% after publishing quarterly turnover lower than expectations.


All three major Wall Street indexes are lower, weighed down by semiconductors, and as investors review the latest round of economic data and look ahead to the Federal Reserve’s next policy decision on September 20.

At closing time in Europe, the Dow Jones lost 0.52%, the Standard & Poor’s 500 0.82% and the Nasdaq Composite 0.27%.

Semiconductor makers Broadcom, ON Semiconductor and NXP Semiconductors fell 1.8% to 3% amid fears over demand as the domestic auto sector faces a historic strike.

Applied Materials, Lam Research and KLA Corp are losing about 4% each after Reuters reported that TSMC had asked suppliers to delay deliveries of chip equipment.


American economic indicators painted a mixed picture on Friday: household morale deteriorated more than expected in September, while industrial production far exceeded expectations.


The dollar fell (-0.17%) against a basket of reference currencies, hit by the publication of data on falling household morale, while the euro gained 0.28% to 1.0671 dollars.

However, the greenback is heading towards a ninth weekly gain, its longest streak in this direction in nine years.


Bond yields rose on Friday, and those on the monetary policy-sensitive two-year German Bund saw their biggest weekly gain since mid-June, following the ECB’s 25 basis point rate hike on Thursday , the market assessing the possibility of a further increase.

It gained more than 5 bps to 3.21%, while the German ten-year yield gained more than 7 to 2.669%.

US bond markets are also progressing, with the ten-year Treasury yield gaining more than 4 basis points to 4.3324%, and the two-year Treasury yield almost 3 bps to 5.0432%.


Oil prices hit a new 10-month high on Friday as fears about reduced supply added to optimism about Chinese demand.

Brent rose 0.1% to $93.79 per barrel, with American light crude (West Texas Intermediate, WTI) increasing 0.58% to $90.68 CLc1.


(Some data may have a slight lag)

(Written by Diana Mandiá)

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