by Pauline Foret

(Reuters) – European stock markets ended higher on Friday, driven by the technology sector despite the specter of economic and geopolitical tensions.

In Paris, the CAC 40 ended up 0.58% at 7,255.01 points. The British Footsie gained 1.38% and the German Dax 0.83%.

The EuroStoxx 50 index advanced by 0.65%, the FTSEurofirst 300 by 1.13% and the Stoxx 600 by 1.18%.

The Stoxx 600 lost more than 4% over the month, as concerns over the war in Ukraine and the economic implications of Donald Trump’s victory in the US presidential election added to gloomy economic data.

“The outlook for Europe relative to the United States is actually quite bleak,” said Stefan Koopman, senior markets economist at Rabobank. “The risk of customs duties is real, and I don’t see how the European Union or Germany in particular will be able to negotiate (with Trump).”

Europe’s largest economy grew less than expected in the third quarter, sliding Germany to last place in the G7. In the rest of the euro zone, the services sector posted an unexpected decline in November.

These economic difficulties are being aggravated by the various political crises on the continent, while the German government coalition has collapsed, French politicians cannot find an agreement on the budget for 2025 and the eastern flank of the continent is in crisis. prey to a serious increase in tension against a backdrop of escalation in the war in Ukraine.

The session was nevertheless driven by a rise in technology stocks, driven by the semiconductor sector amid enthusiasm for the future of generative artificial intelligence (AI).

VALUES

On the value side, Thales lost 3.51% after indicating on Thursday that it was the target of an investigation in France and the United Kingdom for alleged acts of corruption.

Nexans lost 4.04% after the sale of a 5% stake in the French group by the Luksic family, the richest in Chile.

Games Workshop gains 16.48%, rising to the top of the Footsie after saying it expects a pre-tax profit of at least 120 million pounds (144.40 million euros)

A WALL STREET

On Wall Street, markets are moving timidly despite geopolitical tensions, banking on the possibility that future President Donald Trump’s policies will boost the world’s largest economy.

At closing time in Europe, the Dow Jones advanced by 0.54% and the Standard & Poor’s 500 by 0.13%, while the Nasdaq Composite lost 0.15%.

On the value side, Gap advances 7.95% after raising its annual sales forecasts on Thursday, declaring in a press release that the holiday season had “started well”.

Intuit lost 4.63% after forecasting lower-than-expected second-quarter revenue and profit on Thursday, specifying that its investments in AI would take time to be profitable.

TODAY’S INDICATORS

In the euro zone, private sector activity contracted unexpectedly in November, according to a survey published Friday by S&P Global.

In Germany, private sector activity fell for the fifth consecutive month, according to the S&P survey, while GDP rebounded in the third quarter, but less than expected, according to the Federal Statistical Office.

In the United Kingdom, British business output contracted for the first time in more than a year, according to the S&P Global/CIPS UK PMI survey released Friday, and retail sales fell more than expected in October , according to data from the National Statistical Office.

In the United States, consumer sentiment improved in November at a slower pace than expected, standing at 71.8 after 70.5 in October, while analysts polled by Reuters had on average forecast a figure of 73. ,7.

CHANGES

Faced with the unexpected decline in the services sector in the euro zone, the single currency tumbled to its lowest level in two years, falling 0.73% to settle at 1.0397 dollars.

The British pound suffered the same fate after the publication of data showing that retail sales fell much more than expected in the United Kingdom in October, losing 0.59% against the dollar.

Galvanized by these losses, the greenback advanced 0.65% against a basket of reference currencies.

RATE

In the United States, long-term Treasuries fall somewhat as investors expect Donald Trump’s arrival in the White House to reignite inflation, dampening hopes of another rate cut of the Federal Reserve, while those for the medium term are regaining composure after the publication of the latest economic data.

The yield on ten-year Treasuries fell 2.4 basis points to 4.4081%, while the two-year rose 1.5 basis points to 4.3644%.

In Germany, bond yields fell after the release of data on the euro zone services sector, which showed that Europe’s largest economy suffered the fifth consecutive fall in the sector.

The yield on the ten-year German Bund fell by 0.3 basis points to 2.2510% and the two-year by 0.1 basis points to 2.0090%.

OIL

Oil prices are higher on Friday, poised to cap one of their best weeks in two months as the escalation in the war in Ukraine raises the specter of a geopolitical risk premium in the market.

Brent rose 0.89% to $74.89 per barrel and American light crude (West Texas Intermediate, WTI) rose 1.07% to $70.85.

METALS

Gold gained 1.1% to 2,688 dollars (2,582 euros) per ounce on Friday, investors retreating to safe values ​​after this week’s escalation in the war in Ukraine.

(Written by Pauline Foret)

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