by Pauline Foret

(Reuters) – European stock markets ended higher on Friday at the end of a month of November marked by geopolitical uncertainties, threats of trade war and political turbulence.

In Paris, the CAC 40 ended up 0.78% at 7,23.11 points. The German Dax also advanced 1.04%, while in London, the British Footsie closed almost flat, up 0.07%.

The EuroStoxx 50 index rose by 1.04%, the FTSEurofirst 300 by 0.63% and the Stoxx 600 by 0.58%.

The French CAC 40 index delivered one of the worst performances of the month, weighed down by uncertainty over the fate of Michel Barnier’s government.

“While French market stress is not spreading to the region, it remains a sobering signal for sentiment towards the euro zone,” analysts at Barclays said.

Most European markets, however, ended the day on a positive note, as investors digested the latest data on euro zone inflation, which brought price increases to a figure close to the 2% target favored by the European Central Bank. .

The British Footsie is the only one not to benefit from this reversal of the situation, the enthusiasm of traders having been unable to compensate for the decline in the defense sector, weighed down by two lowering of recommendations on BAE Systems and Land Qinetiq.

VALUES

In Paris, Elior jumped 6% after an increase in JPMorgan’s recommendation to “overweight” from “neutral”. American bank analysts believe that the French collective catering group is well positioned to succeed in its restructuring, after several difficult years.

Red lantern of the Stoxx 600, BAE Systems fell by 5.46% after the lowering of the advice of Bofa Global Research to “underperformance” against “neutral”.

A WALL STREET

Across the Atlantic, the markets are moving in the green for a shortened session and are on track to experience their largest monthly increase since the start of the year, mainly driven by the “Trump trade” and the excitement caused by the forecasts. encouraging on the economic fallout from this “Black Friday”.

On the value side, Applied Therapeutics fell 75.03% after the Food and Drug Administration (FDA) refused to approve its treatment for a rare metabolic disease.

TODAY’S INDICATORS

The consumer price index calculated according to European standards (HICP) increased by 2.3% year-on-year in November in the 20 countries sharing the European currency, in line with the consensus and after 2.0% in October, according to data published Friday by Eurostat. In France, this figure rose to 1.3%.

In Germany, the number of unemployed rose by 7,000 in seasonally adjusted terms, while analysts polled by Reuters had expected the figure to rise by 20,000. Retail sales fell more than expected in November, slipping 1.5% while analysts expected a drop of 0.3%.

In France, household consumption expenditure on goods fell in October, contrary to expectations, while GDP growth was confirmed at 0.4% in the third quarter, according to data published by INSEE. Producer prices also increased by 0.9%, after a drop of 0.1% the previous month.

CHANGES

The dollar is almost stable, down 0.03% against a basket of reference currencies after falling on Friday while the Japanese currency regains its footing after data on Japanese inflation which revived debates on a possible rate hike from the Bank of Japan.

The euro is also almost stable, showing a small decline of 0.09% against the dollar but heading towards a decline of 3% over the month of November after having suffered from the election of Donald Trump and fears over the health of the bloc’s economy.

RATE

European bond yields are under pressure after the latest euro zone inflation data.

The ten-year German Bund yield fell 0.5 basis points to 2.0840%, the two-year yield fell 0.8 basis points to 1.9480%.

The yield on ten-year Treasuries fell by 3.7 basis points to 4.2052%.

OIL

Oil prices are moving in mixed order but are heading towards a decline of more than 3% over the week after the ceasefire decided between Israel and Hezbollah in Lebanon.

Brent lost 0.26% to $73.09 per barrel, while American light crude (West Texas Intermediate, WTI) advanced 0.35% to $68.96.

TO BE FOLLOWED NEXT WEEK:

The week promises to be active for the markets. Several indicators are on the menu, including the manufacturing PMI index in Europe and the United States on Monday as well as the monthly report on American employment on Friday. On Thursday, the Federal Reserve will publish its beige book.

(Some data may have a slight lag)

(Written by Pauline Foret)

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