PARIS (Reuters) – Almost all European stock markets ended in decline on Thursday after several sessions of progress, in a context of caution after various negative American activity indicators and before statements from monetary policy officials.
In Paris, the CAC 40 fell 0.57% to 7,168.4 points, compared to 1.01% for the British Footsie. Exception, the German Dax gained 0.24%, supported by the performance of Siemens.
The EuroStoxx 50 index ended the session down 0.3%, compared to 0.57% for the FTSEurofirst 300 and 0.72% for the Stoxx 600.
Several American indicators confirmed the slowdown in activity across the Atlantic, two days after the publication of inflation figures showing a stronger decline than expected by the markets.
Industrial production declined twice as fast as expected, by 0.6% month over month, imports contracted and the outlook for businesses as measured by the Philly Fed index is declining.
Above all, unemployment claims were higher than expected, while the strength of the labor market has been one of the main factors of inflation in the United States in recent months.
All these indicators give markets hope that the Federal Reserve’s rate hikes are indeed over, but many members of the institution’s board of governors will speak in the coming days, which calls for caution.
Despite the fall in oil prices and sovereign yields, markets consolidated their gains this Thursday after rebounding in recent days, with the Stoxx 600 reaching a one-month high on Wednesday.
OIL
Crude prices are falling due to concerns about the state of demand in the United States with swelling inventories, according to data from the American Energy Information Administration. Inventories increased by 3.4 million barrels last week, almost twice as much as markets expected.
Brent fell 4.3% to $77.69 per barrel, American light crude (West Texas Intermediate, WTI) fell 4.59% to $73.14.
RATE
Yields fell sharply in light of weak economic data that suggested a slowdown in US activity.
At the close of the European interest rate markets, the ten-year Treasury yield lost 7 basis points to 4.4667%, while the two-year rate fell by 6.8 bp to 4.8481%.
The yield on the German ten-year fell 4.5 bps to 2.586%, while that of the two-year rate fell by 6.3 bps to 2.95%.
VALUES
Vallourec climbed 5.2% after the steel tube maker raised its annual gross operating income outlook, citing a favorable market environment in the Eastern Hemisphere region.
Burberry has warned that its revenue growth forecast for the current financial year may need to be revised down as global luxury spending slows. The stock dropped 1.15% and took with it the luxury sector, which fell 1.47%. LVMH lost 1.79%, Kering 2.69%, Richemont 1.83% and Moncler 2.62%.
The energy sector fell by 2.71% while crude oil fell, in a context of concern about the state of oil demand. Total lost 2.64%, among the worst performances on the CAC 40.
Siemens reported a record quarterly profit for its industrial division on Thursday, pushing its stock up 5.7%, despite a more cautious sales outlook for 2024 due to persistent destocking among Chinese customers.
Hellofresh fell 22.4%, trailing the Stoxx 600, after the meal kit maker cut its forecast for fiscal 2023 on Wednesday, citing weaker revenue growth and higher-than-expected expenses. in the North American unit.
A WALL STREET
Wall Street is also consolidating after five sessions of increases and activity indicators that are worse than expected.
At closing time in Europe, trading on the New York Stock Exchange indicated a decline of 0.42% for the Dow Jones, 0.21% for the Standard & Poor’s 500 and 0.41% for the Nasdaq Composite.
CHANGES
The dollar is hesitating after the publication of several indicators suggesting a decline in activity in the United States, which could push the Federal Reserve to reassess the trajectory of its rates.
The dollar is standing still against a basket of reference currencies, while the euro is immobile at 1.0848 dollars. The pound sterling is stable at $1.2417.
(Written by Corentin Chappron, edited by Bertrand Boucey)
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