PARIS (Reuters) – European stock markets ended higher on Friday, reassured about the American and Chinese economic trajectories.

In Paris, the CAC 40 increased by 0.64% to 7791.79 points, while the German Dax rose by 1.26% and the British Footsie strengthened by 0.43%.

The EuroStoxx 50 index ended the session with an increase of 0.71%, while the FTSEurofirst 300 recorded a gain of 0.46% and the Stoxx 600 gained 0.52%.

PCE inflation was broadly in line with economists’ consensus, reviving hopes that price dynamics are back under control.

“These benign figures allow monetary policy makers to focus more on growth and employment,” summarize ING economists.

“With income growth appearing weaker, and households seeing a slowdown in the job market, markets will continue to anticipate significant easing from the Fed,” the analysts add.

Market circumspection regarding the measures taken by China has also dissipated, and the stimulus measures supported global indices at the end of the week.

“The change in tone from the Fed as well as the coordinated Chinese recovery plan seem to have considerably alleviated two of the biggest concerns of the financial markets: a Fed which would maintain its high rates for too long and a China whose economy is slowing down”, summarizes Florian Ielpo , head of research at Lombard Odier IM.

“Emerging stocks grew by 6.3% over the week, recalls the economist, outperforming the performance of developed stocks (+1.2%), driven by Chinese stocks (+12.6%).”

A WALL STREET

Wall Street is hesitating mid-session, with good inflation figures and a better-than-expected Michigan sentiment indicator in September having reassured the markets.

At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 1.01% for the Dow Jones, compared to 0.1% for the Standard & Poor’s 500, and a decrease of 0.23%. for the Nasdaq Composite, under pressure from the decline in technology stocks.

VALUES

The chemicals sector closed up 2.75%, supported by measures taken by China to support its markets.

Moncler gained 10.87% after announcing an agreement with LVMH which will seize 10% of Double R, a vehicle itself holding 15.8% of the Italian down jacket specialist. LVMH for its part climbed 3.57%.

Forvia gained 11.52%, the French automotive supplier having announced a drop in its annual forecasts for turnover and operating margin but also the acceleration of its plans to cut jobs in Europe.

Trigano took 11.16%, the French motorhome specialist having announced to pay a second interim dividend after reporting on Thursday a 12.8% increase in its turnover for the 2023-2024 financial year .

Novo Nordisk ended down 4.59%, JP Morgan having published a note in which the broker estimates that the group’s third quarter results could be lower than consensus.

RATE

Yields fell slightly as rate optimism supported sovereigns.

The yield on the German ten-year lost 3.2 bp to 2.141%, that of the two-year rate lost 2.5 bp to 2.087%.

At closing time in Europe, the yield on the ten-year Treasury declined by 1.8 bp to 3.7714%, while the yield on the two-year security fell 3.3 bp to 3.5898%.

CHANGES

The dollar is falling as investors position themselves for a faster than expected rate cut from the Fed.

The dollar fell 0.07% against a basket of reference currencies, the euro eroded 0.08% to 1.1167 dollars, and the pound sterling lost 0.12% to 1.3399 dollars.

OIL

The barrel is hesitating, with the markets estimating that supply could become greater thanks to the resumption of Libyan production.

Brent fell by 0.08% to $71.54 per barrel, American light crude (West Texas Intermediate, WTI) rose by 0.1% to $67.74.

TO BE CONTINUED ON MONDAY:

(Written by Corentin Chappron)

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