Europe ends up, Wall Street hesitates mid-session – 05/10/2024 at 6:21 p.m.

Europe ends up, Wall Street hesitates mid-session – 05/10/2024 at 6:21 p.m.
Europe ends up, Wall Street hesitates mid-session – 05/10/2024 at 6:21 p.m.

A trader works at CMC Markets, London

by Augustin Turpin

European stock markets ended higher on Friday, driven by solid corporate results in the first quarter, and Wall Street hesitated mid-session after the latest data on American household morale, at the end of a week of limited trading.

In Paris, the CAC 40 ended up 0.38% at 8,219.14 points, after recording a session record at 10:15 GMT at 8,256.85 points. The British Footsie takes 0.63% and the German Dax 0.38%.

The EuroStoxx 50 index gained 0.52%, the FTSEurofirst 300 0.78% and the Stoxx 600 0.77%.

European markets are regaining momentum after a slowdown in April, driven by corporate results, while indices have recorded exceptional gains since the end of 2023 with the craze for artificial intelligence.

Trade in Europe was supported by data on activity in the United Kingdom which showed a larger-than-expected rebound, which marks the country’s exit from recession in the first quarter.

Adding to the encouraging outlook, the Bank of England highlighted its confidence in inflation slowing to 2% at its latest monetary policy meeting, suggesting rates could be eased more than expected. by consensus.

“The improving macroeconomic backdrop should support the European equity market… valuations remain very reasonable and there may still be room for them to grow,” said Thomas McGarrity, an analyst at RBC Wealth Management.

The European utilities compartment gained 1.4%, driven by the rise in Enel shares (3.8%), the Italian group having reported profits above expectations in the first quarter, while the resources compartment of basis increased by 1.3%, following the rise in precious metal prices.

In values, Zalando gained 3.3% and the Italian Defense group Leonardo 3% after changes in recommendation.

A WALL STREET

On Wall Street, the latest data on American household morale weighed on trade, dragging the indices down.

At closing time in Europe, the Dow Jones gained 0.13%, the Standard & Poor’s 500 0.02% and the Nasdaq Composite lost 0.17%.

Cybersecurity group Gen Digital soars 14.8% and artificial intelligence technology company Soundhound 12.4% after publishing their quarterly results.

TODAY’S INDICATORS

The first estimate from the Office for National Statistics (ONS) published on Thursday showed that British GDP grew more strongly than expected in the first quarter of 2024 and in March.

The monthly survey from the University of Michigan released Friday showed that American household morale deteriorated more than expected in May.

CHANGES

The dollar stabilizes (0.09%) after falling Thursday against a basket of reference currencies, while the euro loses 0.11% to 1.0769 dollars.

RATE

Eurozone bond yields are stable, with the ten-year German Bund yield losing 0.1 basis point (bp) to 2.52%, with the US Treasury at the same maturity gaining 4.9 basis points to 4.4983 %.

OIL

Oil prices are hesitating as traders struggle with conflicting data on US and Chinese demand.

Brent fell 0.38% to $83.56 per barrel at 3:55 p.m. GMT, with American light crude (West Texas Intermediate, WTI) losing 0.32% to $79.01 at the same time.

(Written by Augustin Turpin, edited by Sophie Louet)

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