from Leticia Volga
PARIS (Reuters) – European stock exchanges rose on Friday after a tumultuous week for risky assets amid concerns over inflation and the global economy.
In Paris, the CAC 40 rose 2.52% to 6362.68 points. The British Footsie rose by 2.55% and the German Dax – by 2.1%.
The EuroStoxx 50 index rose 2.49%, the FTSEurofirst 300 rose 2% and the Stoxx 600 rose 2.14%.
The latter posted a weekly increase of 0.83%, which allowed him to break the cycle of decline for four consecutive weeks. CAC 40 grew 1.67% for the week.
Significant changes have taken place in the stock markets this week, with investors fearing a sharp slowdown in the global economy with the tightening of monetary policy by central banks, including the United States, in the face of high prices.
Federal Reserve Chairman Jerome Powell said Thursday night that the fight against inflation will not be painless, confirming that he expects to raise rates by half a percentage point in the next two meetings of the institution.
These statements seem to have contributed to the growth of shares, as well as encouraged signals of the health crisis in China.
But BofA analysts warn that while markets may benefit from a short-term rebound, they could later resume a downtrend that has caused the US Nasdaq 100 to fall more than 25 percent since the beginning of the month.
“The week has been extremely volatile, alternating between fears of inflation and then growth. It’s a confrontation between the two speakers,” said Kim Rupert of Action Economics.
At the moment, the main indexes on Wall Street have risen from 1.37% to 3.59%.
All sectors in Europe are green, from the Stoxx Telecommunications Index (+ 1.07%) to the Transport and Recreation Index (+ 4.83%).
At the top of the CAC 40 index, Veolia, Renault and STMicroelectronics rose from 3.75% to 5.99%.
The casino took 9.85% in response to information from Les Echos about Engie and TotalEnergies’ alleged interest in the GreenYellow subsidiary of the renewable energy distributor.
EXCHANGES / COURSE
In the foreign exchange market, the “dollar index”, which measures the change in the dollar against the reference basket, gives 0.31%, but goes to the sixth week of growth.
The euro rose again to more than $ 1.04, the day after the January 2017 low of 1.0352.
Bitcoin rose 5.09% after falling the previous day to its lowest level in 16 months. The yield on sovereign bonds is rising after a sharp decline in the last few days. The rate of ten-year treasury bonds rose by almost nine basis points to 2.904%, and its German equivalent ended at 0.95%.
The oil market is growing rapidly, but recovering only a small part of the losses in previous sessions, and it is moving to negative weekly figures after two weeks of progress, indicating that fears of global demand still prevail due to the risk associated with sanctions. against Russia.
Brent rose 3.09% to $ 110.77 a barrel, and US West Texas Intermediate (WTI) rose 3.51% to $ 109.86.
INDICATORS OF THE DAY
According to preliminary results from a University of Michigan poll, due to inflation concerns, US household sentiment fell more than expected in May to 59.1.
(Written by Leticia Volga, edited by Sophie Louet)