Traders work at the Frankfurt Stock Exchange
by Claude Chendjou
In the absence of Wall Street and in limited trading, a technical rebound allowed the European stock markets on Thursday, driven in particular by the rebound in technology stocks, to return to green after two consecutive sessions in the red.
The New York Stock Exchange remained closed Thursday due to the Thanksgiving holiday and will reopen Friday for a shortened session.
In Paris, the CAC 40 ended with a gain of 0.51% to 7,179.25 points. The British Footsie advanced by 0.08% and the German Dax by 0.84%.
The EuroStoxx 50 index increased by 0.53%, the FTSEurofirst 300 by 0.45% and the Stoxx 600 by 0.45% as well.
The Parisian market benefited from a strong easing in the bond compartment with the ebbing of tensions at the political level. The government of Michel Barnier, threatened by a motion of censure, announced on Thursday that it would not increase taxes on electricity, a subject of tension with the oppositions, as planned in its draft budget for 2025.
In the rest of Europe, the technology sector in Europe, up 0.90%, contributed to the good performance of stock indices, after the Bloomberg agency reported that restrictions on chip exports to China envisaged by the American administration could be less strict than expected.
A sign of a general calm on the markets, the volatility index on the Eurostoxx 50 fell to around 17 points, losing almost 4% at the time of the close of the stock markets in Europe.
VALUES IN EUROPE
Rémy Cointreau gained 2.96% after announcing that it was preparing for a recovery in the United States.
Direct Line Insurance soared 41.39% after the rejection of a purchase offer from Aviva (-2.0%) deemed insufficient.
Nexi rose 3.97% after press information according to which its main shareholder, CDP, plans to buy the payment group’s interbank network, RNI.
Uniper climbed 6.14% thanks to an increase in its annual outlook.
TODAY’S INDICATORS
German inflation, calculated according to European standards, stagnated at an annual rate in November (+2.4%), but contracted from one month to the next (-0.7%), according to preliminary data of the Federal Statistical Office.
Economic sentiment in the euro zone improved slightly in November, with an index at 95.8, according to data from the European Commission.
Growth in corporate loans in the euro zone accelerated in October to reach 1.2% year-on-year in October compared to 1.1% in September, according to data from the European Central Bank (ECB).
CHANGES
The euro fell against the dollar on Thursday, as traders reduced their bets on further ECB key rate cuts, while currency movements were moderate with Thanksgiving.
At the close of stock markets in Europe, the single currency stood at 1.0549 dollars, down 0.15%.
The dollar index gained 0.08%, to 106.2 points, after falling to 105.85 during the previous session, a two-week low.
While François Villeroy de Galhau, governor of the Banque de France, pleaded on Thursday for the ECB to keep the option open of a more significant drop in its rates in December, the day before, Isabel Schnabel, also a member of the ECB, had estimated that a sharp cut in rates would not correct the structural problems of the euro zone. Klaas Knot, the governor of the Dutch central bank, said on Thursday that the ECB should in future make a clearer distinction between instruments used to control inflation and those aimed at stabilizing financial markets.
RATE
The yield gap between French and German debt, which rose on Wednesday to its highest since 2012, narrowed on Thursday to 82 basis points (bp), while the ten-year OAT rate fell by 7 .1 bps, at 2.949%.
The ten-year German Bund yield closed at 2.125%.
OIL
Oil prices are stable on Thursday despite mutual accusations of violation of the ceasefire agreement between Israel and Lebanese Hezbollah.
Brent nibbles 0.01% to $72.83 per barrel and American light crude (West Texas Intermediate, WTI) loses 0.04% to $69.64.
TO BE CONTINUED FRIDAY:
First estimate of euro zone inflation for the month of November
(Written by Claude Chendjou, edited by Zhifan Liu)
