by Pauline Foret
(Reuters) – European stock markets ended lower on Friday amid concerns about global monetary policies and Donald Trump’s latest threats to impose customs duties on the European Union.
In Paris, the CAC 40 ended down 0.27% at 7,274.48 points. In Frankfurt, the Dax fell by 0.27% and in London, the FTSE 100 lost 0.26%.
The EuroStoxx 50 index closed down 0.18%, the FTSEurofirst 300 was down 0.96% and the Stoxx 600 was down 0.78%.
The end of the session caps a gloomy week for European assets, with Donald Trump’s latest threats to impose tariffs on the European Union adding to global concern about the policy that will be adopted the Federal Reserve after the new president takes office.
Donald Trump said the EU must buy more American oil and gas to make up for its “huge deficit” with the world’s largest economy, otherwise the Union would face steep tariffs.
“There are more than a trillion euros worth of goods traded between the US and the EU each year, and with weak demand in many continental countries, any questions about exports risk shaking confidence.” , said Derren Nathan, head of equity research at Hargreaves Lansdown.
Across the Atlantic, figures from the PCE index, an indicator favored by the Federal Reserve, showed that inflation increased by 2.4% over one year, below the estimates of analysts polled by Reuters, who expected on an increase of 2.5%.
After the publication of this data, investors relaunched bets on the number of key rate cuts by the American central bank in 2025 when the latter had announced that it would be more cautious in the face of stubborn inflation in the country, allowing global stocks to recoup some of their losses.
VALUES
On the values side, the big loser of the session is the Danish pharmaceutical giant Novo Nordisk, which tumbled 20.7% after its new anti-obesity drug CagriSema disappointed expectations during a clinical trial. Earlier in the day, the stock lost more than $125 billion in market capitalization.
A WALL STREET
Across the Atlantic, the main indices reversed their initial prices after the PCE inflation data.
At closing time in Europe, the Dow Jones advanced by 1.75%, the Standard & Poor’s 500 by 1.71% and the Nasdaq Composite by 1.74%.
CHANGES
The dollar is falling somewhat this Friday but is still on track to complete a third week of gains after US inflation data and the latest Fed rate cut.
The dollar lost 0.60% against a basket of reference currencies.
The euro gained 0.65% to 1.0428 dollars.
RATE
The latest US inflation figures are sending US bond yields tumbling.
The yield on ten-year Treasuries fell 7.2 basis points to 4.4982%, and two-year Treasuries lost 3.2 basis points to 4.2869%.
OIL
Amid concerns about demand in China, the world’s largest importer, oil prices stabilized on Friday after falling at the start of the session.
Brent lost 0.05% to $72.84 per barrel while American light crude (West Texas Intermediate, WTI) was stable at $69.38.
TO BE CONTINUED MONDAY DECEMBER 23:
The Euronext and Wall Street financial markets will only open for half a session on Tuesday December 24 and will be closed on December 25 and 26.
(Written by Pauline Foret, edited by Augustin Turpin)
Copyright © 2024 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
