PARIS (Reuters) – European stock markets ended higher on Thursday, supported by a monetary policy report from the European Central Bank (ECB) that was less restrictive than expected and by good quarterly results.
In Paris, the CAC 40 gained 1.13% to 7,401.35 points, while the German Dax rose by 0.83% and the British Footsie by 0.17%.
The EuroStoxx 50 index ended the session with an increase of 1.08%, compared to 0.54% for the FTSEurofirst 300 and 0.57% for the Stoxx 600.
Markets rebounded from Wednesday’s plunge as investors repositioned for smaller-than-expected rate cuts earlier this year.
Thursday’s publication of the minutes of the latest ECB meeting also contributed to the good performance of risky assets, these “minutes” showing that European monetary policy makers recognize the uncertainty of the trajectory of inflation in the zone. euro – even if a short-term decline remains excluded.
Adding to investor optimism, luxury and technology stocks benefited from the good results of Richemont and TSMC respectively.
The next important meeting for the markets will be the ECB monetary policy meeting on January 25. The central bank is expected to maintain its rates at their current levels, but investors will be attentive to the statements of its president, Christine Lagarde, who will discuss the outlook for rates and growth in the euro zone.
VALUES
Luxury goods jumped 3.38% and supported European indices, after Richemont (+10.39%) reported on Thursday a 4% increase in its sales for its third quarter. LVMH gained 2.47%, Hermès 1.76% and Kering 2.17% in the wake of the Swiss group.
The technology sector benefited from the good results of TSMC and increased by 2.88%. STMicroelectronics advanced 3.70%, ASML 4.06% and Infineon 4.81%.
Carmat lost 13.83% after announcing on Wednesday that it was launching a capital increase.
Online betting group Flutter rose 15.34%, leading the Stoxx 600, after reporting a 15% increase in turnover in the fourth quarter.
Watches of Switzerland fell 36.73% after lowering its full-year revenue and margin outlook.
A WALL STREET
Wall Street appears hesitant at closing time in Europe, technology stocks benefiting from good results from TSMC, while investors are worried about the robustness of the American economy.
At closing time in Europe, trading on the New York Stock Exchange indicated a drop of 0.05% for the Dow Jones, against an increase of 0.49% for the Standard & Poor’s 500 and 1.07 % for the Nasdaq Composite.
RATE
Long yields closed moderately higher as markets digested a burst of data and commentary in recent days.
At the close of the European interest rate markets, the yield on the ten-year Treasury increased by 1.7 bp to 4.1209%, compared to a decline of 1 bp for the two-year rate, to 4.344%.
The German ten-year yield rose 3.5 bps to 2.308%, while the two-year yield stagnated at 2.684%.
CHANGES
The euro is falling under pressure from the dollar, with the greenback benefiting from good data.
The dollar is stable against a basket of reference currencies, while the euro lost 0.17% to 1.0862 dollars. The pound sterling strengthened by 0.09% to 1.2684 dollars.
OIL
Crude is rising, with the International Energy Agency (IEA) and OPEC anticipating robust demand growth in 2024.
Brent increased by 1.07% to $78.71 per barrel, American light crude (West Texas Intermediate, WTI) increased by 1.61% to $73.73.
(Written by Corentin Chappron)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
