PARIS (Reuters) – European stock markets ended higher on Wednesday, after encouraging American data and a collapse in oil prices.
In Paris, the CAC 40 gained 0.43% to 7,260.73 points, while the German Dax gained 0.36%. The British Footsie, on the other hand, fell by 0.17%, under pressure from the decline in Kingfisher.
The EuroStoxx 50 index ended the session with an increase of 0.48%, compared to 0.3% for the FTSEurofirst 300 and 0.32% for the Stoxx 600, at a two-month high.
The markets are digesting the latest indicators published Wednesday in the United States, which give hope for a soft landing for the American economy despite the Federal Reserve’s rate increases.
New jobless claims, durable goods orders and American consumer sentiment are all slowing but remain resilient enough to avoid a sudden drop in activity.
The minutes of the Fed’s latest monetary policy meeting did not surprise the markets, which continue to bet that the Fed will lower its rates as early as June 2024, with some market operators even anticipating that the first rate cut could intervene from March.
Equity markets are also benefiting from the decline in crude oil prices, triggered by the postponement of the next OPEC+ meeting initially scheduled for November 26.
The decline in market volatility is contributing to their performance, with the European stock market volatility index having reached its lowest level since July.
OIL
Crude is down sharply, with the next OPEC+ meeting, initially scheduled for Sunday, having been postponed for no reason until November 30. Sources told Reuters the postponement was due to disagreements over current production levels in some members, particularly African ones, and the extent of the cuts that would result.
Brent fell 3.6% to $79.48 per barrel, American light crude (West Texas Intermediate, WTI) fell 3.77% to $74.84.
VALUES
The decline in oil prices weighed on energy stocks, with TotalEnergies finishing at the bottom of the CAC 40, down 1.75%. The sector index achieved the worst performance of the Stoxx 600 sectors, falling by 1.65%.
Elior announced on Wednesday that it was profitable again, which caused the stock to jump 6.17% at the top of the SBF120, despite forecasts below expectations for the 2023-2024 financial year.
Interparfums climbed 5.33%, among the best performances of the SBF120, with the group anticipating a turnover for this year increasing from 12% to 13%.
Casino lowered its annual earnings before interest, taxes, depreciation and amortization (Ebitda) target for France on Wednesday, for the second time in a month, due to a slower than expected recovery in activity in its hypermarkets. and the impact of its investments. The stock lost 2.12%, among the worst performances in the SBF120.
Kingfisher, owner of the Castorama and Brico Dépôt brands, revised its annual profit forecast downwards on Wednesday for the second time in three months and fell to the bottom of the Stoxx 600, down 6.98%.
The British software publisher Sage soared 13.32%, leading the Stoxx 600, thanks to an 18% jump in its annual operating profit.
A WALL STREET
Wall Street is moving cautiously and trading volumes remain limited on the eve of the Thanksgiving holiday, during which the markets will be closed.
At closing time in Europe, trading on the New York Stock Exchange indicated an advance of 0.5% for the Dow Jones, compared to 0.42% for the Standard & Poor’s 500 and 0.54% for the Nasdaq. Composite.
RATE
Yields rose moderately after the publication of unemployment claims falling from one week to the next in the United States, contrary to market expectations.
At the close of the European interest rate markets, the yield on the ten-year Treasury increased by 1.5 basis points to 4.4334%, compared to 4.7 bp for the two-year rate, at 4.9295%.
The German ten-year yield rose 1 bps to 2.567%, while the two-year yield rose 4 bps to 3.015%.
CHANGES
The dollar continues its rebound that began last session, with Fed minutes suggesting that rates will remain restrictive for some time to come.
The dollar gained 0.46% against a basket of reference currencies, while the euro fell 0.4% to 1.0865 dollars. The pound sterling fell 0.63% to $1.2458.
(Written by Corentin Chappron, edited by Bertrand Boucey)
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