by Augustin Turpin

(Reuters) – European stock markets ended slightly lower on Thursday, with a rise in health stocks offsetting a decline in the energy sector, although markets appear to be heading towards a solid end to the year, with many hopeful focusing on a reduction in interest rates at the start of 2024.

In Paris, the CAC 40 ended down 0.48% at 7,535.16 points. The British Footsie closed in balance and the German Dax fell 0.27%.

The EuroStoxx 50 index lost 0.32%, the FTSEurofirst 300 0.12% and the Stoxx 600 0.1%.

The healthcare sector led the gains, with Novo Nordisk closing +0.9% after two consecutive declines in previous sessions.

Conversely, values ​​in the energy sector were dragged down by the reduction in crude prices with the prospect of a gradual resumption of maritime traffic in the Red Sea. In Paris, TotalEnergies lost 1.7% at the close of trading.

A WALL STREET

American markets continued their upward momentum during the penultimate session of the year, with the benchmark S&P 500 index approaching its all-time high, while investors continued to bet on an anticipated drop in bond rates. interest in early 2024.

In terms of values, Cingulate soared 134% after closing up 100% on Wednesday, the biopharmaceutical company having announced this Thursday that it had received directives from the American drug agency concerning its clinical program for Ctx-1301.

TODAY’S INDICATORS

In the United States, unemployment claims increased during the week ending December 23, to 218,000 compared to 206,000 (revised) the previous week, according to the Labor Department.

CHANGES

The dollar compensates for its losses from the day before and gains 0.72% against a basket of reference currencies, while the euro loses 0.29% to 1.1070 dollars.

RATE

Developments in Eurozone bonds were mixed, with yields holding near multi-month lows on Thursday as markets banked on an upcoming round of rate cuts by central banks.

“The main driving force behind the moves is the expectation of rate cuts from major central banks,” said Amanda Sundström, an analyst at SEB.

The ten-year German Bund yield lost 3.6 points to 1.935%.

In the United States, the yield on Treasury bills of the same maturity rose 3.9 basis points to 3.8276%, driven by the greater than expected increase in unemployment claims.

“I think in terms of the recovery in the Treasury market, it might make sense to see a near-term reversal or a modest reversal,” said Michael Lorizio, managing director at Manulife Investment Management.

OIL

Oil prices are falling as concerns over shipping disruptions in the Red Sea ease.

A Reuters analysis of Maersk’s schedule showed on Thursday that the Danish carrier will now route almost all container ships sailing between Asia and Europe through the Suez Canal and very few will go around Africa.

Brent dropped 1.26% to $78.65 per barrel, with American light crude (West Texas Intermediate, WTI) losing 1.05% to $73.33.

(Writing by Augustin Turpin, edited by Kate Entringer)

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