by Claude Chendjou

PARIS (Reuters) – European stock markets ended higher on Thursday, driven by solid corporate results while Wall Street moved without much change at mid-session awaiting a speech from Jerome Powell, the president of the American Federal Reserve.

In Paris, the CAC 40 ended with a gain of 1.13% to 7,113.66 points. The British Footsie advanced 0.73% and the German Dax gained 0.81%.

The EuroStoxx 50 index increased by 1.21%, the FTSEurofirst 300 by 0.76% and the Stoxx 600 by 0.84%.

At the time of closing in Europe, the Dow Jones advanced by 0.01%, the Standard & Poor’s 500 by 0.10% and the Nasdaq by 0.22%, the indices evolving on small variations, both upwards and downwards. the decline, in a context of wait-and-see attitude.

Jerome Powell, who is due to speak this Thursday at 7:00 p.m. GMT as part of a conference organized by the International Monetary Fund (IMF), did not wish to comment on monetary policy the day before, in his conference on Wednesday , adding uncertainty over the prospect of a rate cut in the United States.

A Reuters survey of economists showed on Thursday that the Fed was expected to keep federal funds rates at their current level through much of the first half of 2024 and that the first expected cut in the cost of credit would come later than expected.

In the euro zone, a speech by Christine Lagarde, the president of the European Central Bank (ECB) is expected at 5:30 p.m. GMT as the markets anticipate a first rate cut by April 2024. The vice-president of the ECB, Luis de Guindos, however, considered it premature to discuss a rate cut, noting that risks still weigh on the inflation outlook. While waiting to see more clearly on rates, investors in Europe were keen to welcome the results of companies, LSEG data showing that among the Stoxx 600 companies having already published, 55.3% have exceeded at this stage expectations, compared to 54% in general for a third quarter.

VALUES IN EUROPE

In Paris, Schneider Electric jumped 8.25% following the publication of its medium-term outlook and Veolia gained 2.55% after confirmation of its annual objectives.

In Amsterdam, electronic payment group Adyen climbed 37.46% thanks to better-than-expected turnover in the third quarter.

In healthcare, AstraZeneca advanced 2.61%, to a nearly three-week high, in reaction to the increase in its annual profit forecast, while Novo Nordisk fell 2.77%, penalized by the approval in Great Britain of the anti-obesity treatment of its American competitor Eli Lilly.

RATES/EXCHANGES

Ten-year and two-year U.S. Treasury yields rose nearly five basis points and three basis points, respectively, to 4.9634% and 4.551% ahead of Powell’s speech.

The US Treasury is also preparing a 30-year bond auction of $24 billion.

In the euro zone, ten-year German Bund yields ended with respective gains of four points and around two basis points, at 2.647% and 3.086%, after two consecutive declines in previous sessions.

The dollar is almost stable (-0.07%) against a basket of reference currencies, while the euro stands at 1.0709 dollars, close to its one-month peak reached on Monday at 1.0765.

TODAY’S INDICATORS

Unemployment claims fell in the United States last week, to 217,000 compared to 220,000 (revised) the previous week.

OIL

Oil prices, which fell on Wednesday to their lowest level since mid-July, are on the rise again: Brent gained 1.36% to 80.62 dollars per barrel and American light crude (West Texas Intermediate, WTI) by 1 .25% to $76.27.

TO BE CONTINUED FRIDAY:

(Written by Claude Chendjou, edited by Blandine Hénault)

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