Europe is coming to an end, despite the decline of Wall Street

from Leticia Volga

PARIS (Reuters) – European stock markets ended higher on Friday, below their highs a day after falling on Wall Street, but they showed negative indicators throughout April, dominated by concerns about slowing global growth.

In Paris, the CAC 40 rose 0.39% to 6,533.77 points after rising to 1.4%. The British Footsie rose by 0.47% and the German Dax – by 0.84%.

The EuroStoxx 50 index rose 0.68%, the FTSEurofirst 300 rose 0.71% and the Stoxx 600 rose 0.74%.

The latter fell by 1.20% for the whole of April due to uncertainty about the war in Ukraine, the pace of monetary policy tightening by central banks and the COVID-19 epidemic in China.

In Paris, CAC 40 fell 0.73% for the week and 1.9% for the month.

The recovery on Friday saw good results, no real bad macroeconomic surprises and the Chinese government’s willingness to support the world’s second-largest economy amid a health crisis and geopolitical risks.

Major Wall Street indexes were in the middle of the session, with the Nasdaq falling 1.9%.

Poor forecasts from Amazon (-12.47%) and Apple (-1%), as well as the prospect of a significant increase in the Federal Reserve rate this year may lead to the fact that the index, rich in technology stocks, is experiencing the largest monthly decline since financial crisis of autumn 2008. .

VALUES

Among the results of the day, Pernod Ricard rose 2.14% after announcing organic revenue growth, well above expectations, and Safran lost 2.16% after warning of the “significant” consequences of the war in Ukraine and inflation.

Accor rose 1.51% and Saint-Gobain 1.35% after publishing their results.

Novo Nordisk rose 5.4% after revising its revenue and operating profit forecast for 2022 and publishing record results for the first quarter.

According to Refinitiv, 65% of companies that reported results exceeded profit expectations.

Excluding the results, Deutsche Bank earned a steady (+ 0.04%) loss to 3.8% in the session after searches at its premises in Frankfurt as part of an investigation into suspicious transactions that are likely to be money laundering, as the German bank itself reported.

CHANGES

The dollar fell -0.46% against a basket of currencies after reaching a 20-year high on Thursday, amid the prospect of a significant rise in the United States and fears of global growth.

The euro rises to 1.0534, up 0.38%, but is approaching a monthly decline of 4.8%, the worst against the dollar since January 2015. Traders warn they are worried about the effects of the war in Ukraine on the economy and prices . .

The ruble hit a more than two-year high against the euro as Russia’s central bank cut its key rate for the second time by 300 basis points in April amid market expectations of a one-year decline.

RATE

In the government bond market, ten-year US bond yields rose to 2.9044% after consumer prices, as measured by the PCE price index, rose 0.9% in March from 0.5% in February.

The German Bund with the same maturity ended at 0.938% after a new record of inflation in the euro area, which confirms the expectations of strengthening monetary policy by the European Central Bank.

Germany’s 10-year figures are expected to grow for the fifth month in a row, rising by 39 basis points in April.

“There seems to be a prevailing view that ECB support is about to fade and fade a little faster than some have previously thought,” said Rainer Guntermann of Commerzbank.

OIL

Oil prices are rising as fears of cuts in Russian supply outweigh fears about the impact of health measures in China on demand.

Brent rose 1.82% to $ 109.55 a barrel, and US light oil (West Texas Intermediate, WTI) rose 1.16% to $ 106.58.

(Leticia Volga, ed.)