PARIS (Reuters) – European stock markets ended higher on Thursday, after encouraging data on inflation on both sides of the Atlantic.

In Paris, the CAC 40 gained 0.59% to 7,310.77 points, while the German Dax gained 0.3% and the British Footsie 0.41%.

The EuroStoxx 50 index ended the session with an increase of 0.31%, compared to 0.6% for the FTSEurofirst 300 and 0.51% for the Stoxx 600.

Over the month of November as a whole, the CAC 40 increased by 6.17%, its best monthly performance since January, while the Stoxx 600 advanced by 6.41%, also the best month since January for this index.

In the euro zone, inflation fell more than expected according to data released Thursday, encouraging investors to bet that the European Central Bank is done with rate hikes.

“Inflation is falling much faster than the ECB expects, which increases pressure for it to reduce rates,” notes Nadia Gharbi, economist at Pictet Wealth Management.

“We expect a first rate cut in June 2024 but it is possible that the central bank will reduce them more quickly.”

Markets will now focus on the central bank’s next economic forecasts, which will be published during its next monetary policy meeting on December 14.

In the United States, several indicators have confirmed the slowdown in price dynamics and activity.

New jobless claims increased last week, while household spending in October contracted.

PCE inflation, the Federal Reserve’s favorite gauge of price dynamics, also declined, in line with market expectations.

Comments from members of the Fed’s board of governors may nevertheless have encouraged investors to be cautious, with New York Fed Governor John Williams warning in particular on Thursday that a rebound in inflation could justify further increases. rate.

Investors will nevertheless remain attentive to the decisions taken during the OPEC+ meeting, as a drop in oil production could have an impact on inflation.

VALUES

Eurazeo jumped 9.72%, the private equity group having mentioned a return to shareholders of 2.3 billion euros over the period 2024-2027.

Orpea collapsed by 91.93% after announcing the results of its capital increase and warning that its current price still remained “significantly uncorrelated” from the theoretical value of its share after the restructuring.

Scandinavian airline SAS reported a larger-than-expected fourth-quarter pretax loss on Thursday as high fuel costs and a weak Swedish currency weighed on its results, sending the stock down 7.14%. .

The energy sector increased by 0.95%, in a context of uncertainty over the OPEC+ decision.

A WALL STREET

Wall Street hesitates while most very large capitalizations decline, Tesla notably falling 1.55%.

At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.81% for the Dow Jones, against a decrease of 0.20% for the Standard & Poor’s 500 and 0.69 % for the Nasdaq Composite.

RATE

US yields are rising despite falling inflation in October. They are nevertheless heading towards their biggest drop over one month since August 2011.

At the close of the interest rate markets in Europe, the ten-year Treasury yield rose 5.7 basis points to 4.3283%, compared to 5.3 bp for the two-year rate, to 4.7009%.

The German ten-year yield increased by 2.8 bps to 2.454%, while that of the two-year remained stable at 2.82%.

CHANGES

The euro falls after inflation data in the euro zone, price dynamics having run out of steam more clearly than expected.

The dollar gained 0.56% against a basket of reference currencies, while the euro lost 0.6% to 1.0902 dollars. The pound sterling fell 0.47% to 1.2634 dollars.

OIL

Crude is falling, with the conclusions of the OPEC+ meeting remaining uncertain at closing time in Europe.

Brent fell 0.46% to $82.72 per barrel, American light crude (West Texas Intermediate, WTI) fell 3.02% to $75.51.

TO BE CONTINUED FRIDAY:

(Written by Corentin Chappron, edited by Bertrand Boucey)

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