by Claude Chendjou

PARIS (Reuters) – European stock markets, except London, ended lower again on Thursday, despite the heavy losses the day before, risk aversion on the Old Continent, born of the election of Donald Trump as president of the United States, showing no real signs of ebbing.

In Paris, the CAC 40 ended down 0.14% at 7,216.83 points, after losing 2.69% on Tuesday. The Paris index is now at a more than three-month low, with virtually all of its major sectors having finished in the red. The British Footsie gained 0.06%, thanks to oil stocks. The German Dax lost 0.30%.

The EuroStoxx 50 index declined by 0.09%, the FTSEurofirst 300 by 0.07% and the Stoxx 600 by 0.13%.

At the close in Europe, the Dow Jones advanced by 0.35% and the Standard & Poor’s 500 by 0.18%. The Nasdaq is practically stable.

The first two stock indices on Wall Street are supported this Wednesday by the consumer price statistics (CPI) in the country which showed inflation in October in line with expectations.

“With inflation not too far from the Fed’s target, the data flow is pretty consistent with the Fed further cutting policy rates in its next move in mid-December,” Bill said. Adams, chief economist at Comerica Bank.

While this Donald Trump program supports American markets, it acts as a warning in Europe, raising fears of a trade war against a backdrop of reinforced American protectionism.

On the pan-European Stoxx 600, apart from energy (+X%), all major sectors have been neglected, new technologies (-1.05%), automobiles (-0.95%) and real estate ( -1.28%), showing among the largest declines.

The volatility index on the EuroStoxx, although down 1.45%, remains close to 20 points.

VALUES IN EUROPE Siemens Energy soared by 18.95% thanks to the increase in its medium-term financial objectives.

RWE jumped 6.14%, as the German group announced a share buyback program for a maximum amount of 1.5 billion euros.

Just Eat Takeaway climbed 15.95% after announcing an agreement to sell its American subsidiary Grubhub to Wonder for $650 million.

CHANGES

The US dollar hit a seven-month high against the major currencies on Wednesday, at more than 106 points, despite the publication of inflation figures in the United States in line with expectations. The greenback is buoyed by expectations around the customs duties promised by Donald Trump which could be potentially inflationary.

The euro fell 0.51%, to 1.0570 dollars, continuing its decline.

“The euro must contend with the outsized impact it will face from a Trump administration and the uncertainty over China’s place in the new world order, to some extent,” writes Marvin Loh, strategist at State Street.

Among digital assets, bitcoin exceeded the symbolic $90,000 mark for the first time, at $92,785.

RATE

Euro zone bond yields fell on Wednesday from their highs of the day after the release of US inflation data. That of the ten-year German Bund ended up 3.5 basis points, at 2.386%, while the two-year rose 2.3 points, to 2.153%.

In the United States, the yield on ten-year Treasuries fell 2.3 basis points, to 4.4098%, and the two-year yield, more sensitive, fell 7.1 points to 4.2731%.

OIL

Oil prices remain close to a two-week low due to gloomy demand prospects, despite their slight rebound today: Brent rose 0.57% to $72.29 per barrel and American light crude (West Texas Intermediate , WTI) 0.56% to $68.49.

(Written by Claude Chendjou, edited by Blandine Hénault)

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