by CORENTIN CHAPRON

PARIS (Reuters) – European stock markets ended up on Thursday, results considered encouraging and a more accommodating posture from the European Central Bank (ECB) supporting risky assets.

In Paris, the CAC 40 increased by 0.11% to 7,505.86 points, while the German Dax rose by 0.39% and the British Footsie strengthened by 0.13%.

The EuroStoxx 50 index ended the session with an increase of 0.3%, while the FTSEurofirst 300 recorded a gain of 0.09% and the Stoxx 600 gained 0.06%.

The results season continues, with figures from many companies causing the indices to react on Thursday in Europe.

Hermès and Renault supported the luxury and automotive sectors, with figures from Barclays and Sodexo also benefiting the Stoxx 600 index.

The PMI indicators published on Thursday also fueled the debates within the ECB.

Some monetary policy makers are in fact calling for a return of the key rate to its neutral level, or even below.

The neutral rate is the rate at which monetary policy neither supports nor slows activity.

“The European Central Bank (ECB) has made a remarkable turnaround. The latest rate cut was only supposed to mark the start (of the easing cycle), but comments this week indicate that the ECB is now keen to bring rates back quickly. rates at a neutral level and to stay one step ahead in terms of monetary policy”, summarize the ING strategists.

VALUES

The luxury sector is progressing after the good results from Hermès published on Thursday. The stock gained 1.1%, while LVMH advanced 2.5%.

Kering was also up 2%, despite Wednesday’s warning that its current operating profit for 2024 could be almost halved due to weak demand in China.

Renault (+4.7%) distinguished itself from the competition on Thursday by confirming its 2024 objectives after a third quarter marked by a turnover higher than expectations.

Michelin lowered its annual result forecast on Wednesday due to a more pronounced slowdown than expected in the automobile market in the third quarter, and lost 8.2%.

Cloud computing service provider OVHcloud soared 11.2% following Thursday’s announcement of a significant jump in its third-quarter revenue, new financial targets for the coming years, as well as the launch of a proposed public share buyback offer.

Danone reported a 4.2% increase in like-for-like sales in the third quarter on Thursday, up 2.8%.

Mersen fell 9.5% after lowering its annual organic growth and operating margin outlook on Wednesday.

Edenred collapsed by 14.6% after announcing on Thursday that its third quarter turnover growth was lower than expected, due to the deterioration of the economic environment, and warning of a regulatory risk in Italy which could affect its Ebitda by 2025.

Sodexo gained 6.5% and BIC 13.6% after their respective quarterly results.

Barclays gained 3.7%, the British bank’s profit having increased more strongly than expected, according to figures published Thursday.

A WALL STREET

Indices exposed to technology are progressing on Wall Street, supported by good figures from Tesla. The automaker takes % mid-session.

At closing time in Europe, trading on the New York Stock Exchange indicated a decline of 0.46% for the Dow Jones, against an increase of 0.1% for the Standard & Poor’s 500, and 0.63 % for the Nasdaq Composite.

CHANGES

The dollar is eroding, with investors positioning themselves for more accommodating rates in the United States after several indicators showing the strength of activity.

The dollar fell by 0.23% against a basket of reference currencies, the euro rose by 0.12% to $1.0794, and the pound sterling strengthened by 0.26% to $1.2954.

RATE

Yields in the euro zone ended in decline, with new elements confirming the slowdown in activity, which could encourage the ECB to ease its rates faster than expected.

The yield on the German ten-year lost 5.9 bp to 2.254%, that of the two-year rate lost 3.9 bp to 2.098%.

At the close in Europe, the yield on the ten-year Treasury declined by 4 bps to 4.2018%, while the yield on the two-year security dropped 3.7 bps to 4.0487%.

OIL

The barrel is falling against a backdrop of uncertainties regarding the American election and the situation in the Middle East.

Brent fell by 0.73% to $74.41 per barrel, American light crude (West Texas Intermediate, WTI) weakened by 0.88% to $70.15.

(Written by Corentin Chappron, edited by Kate Entringer)

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