Chart of the German stock index Dax on the Frankfurt Stock Exchange
couple Pauline Foret
European stock markets ended sharply lower on Friday, weighed down by sectors particularly exposed to China and by the sharp decline in the spirits and brewers sector.
In Paris, the CAC 40 ended down 1.51% at 7,282.22 points around 16:52 GMT. In Frankfurt, the Dax fell by 0.58% and in London, the FTSE 100 lost 0.44%.
The EuroStoxx 50 index is down 0.96%, the FTSEurofirst 300 is down 0.55% and the Stoxx 600 is down 0.49%.
The sharp decline in the European spirits and brewers sector, caused by the warning of the Surgeon General of the United States on the risks of cancer linked to alcohol consumption, weighs down a stock market already exhausted by fears of an economic slowdown in China.
In Hainan, the Chinese island province where global luxury players have set up shop, tax-free spending fell 29.3% last year as a weak economy led to a sharp decline in the number of domestic visitors.
Sectors highly exposed to China, such as the mining sector, the luxury sector and the automotive sector, are weakening amid concerns about the growth of the second largest economy in the world and the impact of potential customs duties imposed. by the Trump administration.
Added to these difficulties are increases in gas prices caused by the cessation of Russian gas transit via Ukraine, which are also weighing on sentiment.
VALUES
The spirits and brewing sector fell sharply on Friday after US Surgeon General Vivek Murthy called on alcoholic beverage producers to implement cancer warning labels. Pernod Ricard, Diageo, Campari and Remy Cointreau lost between 3.08% and 5%, while brewers AB Inbev, Heineken and Carlsberg lost between 0.8% and 2.67%.
In London, Tullow Oil gained 8.05% after the group declared that it had been exempted from paying 320 million dollars (310.77 million euros) in taxes on its operation in Ghana, allowing the Footsie to post a less radical decline than other European indices.
Kering drops 4.88%, followed not far by LVMH (-3.79%) and Hermès (-2.78%) as part of a general decline in the luxury sector against a backdrop of concerns about the economy Chinese.
A WALL STREET
On the other side of the Atlantic, the main indices are moving in the green after data published in the afternoon showed a faster improvement than expected in manufacturing activity in the United States.
US spirits producers and brewers also fall after Vivek Murthy's report. The manufacturer of Jack Daniel Brown-Forman whiskey fell 1.5%. Constellation Brands, owner of Corona beer, lost almost 1%.
US Steel lost nearly 6% after American President Joe Biden decided to block the proposed takeover of the American steel group by its Japanese competitor Nippon Steel.
TODAY’S INDICATORS
Unemployment in Germany increased less than expected in December, according to data published by the Federal Statistical Office.
On the other side of the Atlantic, manufacturing activity in the United States recovered in December, thanks to a rebound in production and a continued increase in new orders, but it remains hampered by the rise in input prices, according to the monthly survey by the Institute for Supply Management (ISM) published Friday.
CHANGES
The dollar retreated Friday but remained on track to complete one of its best-performing weeks since mid-November, as investors bet on the possibility that the U.S. economy will continue to shine on the international stage.
The greenback lost 0.29% against a basket of reference currencies.
The euro, which on the other hand closed the year on a much more gloomy note, gained 0.21% to 1.0287 dollars.
RATE
US bond yields remain above the psychological mark of 4.5% this Friday, advancing somewhat after the publication of ISM data on manufacturing activity.
The yield on ten-year Treasuries gained 0.2 basis points to 4.5773% and two-year treasuries gained 0.8 basis points to 4.2558%.
OIL
Oil prices increase on Friday, continuing their growth started the previous session against a backdrop of economic recovery in China and falling temperatures on both sides of the Atlantic.
Brent gained 0.72% to $76.48 per barrel and American light crude (West Texas Intermediate, WTI) gained 1.16% to $73.98.
TO BE CONTINUED MONDAY JANUARY 6:
Many indicators are expected on January 6, including services PMIs in Germany, the United Kingdom and France and preliminary German inflation data.
THE SITUATION ON THE MARKETS
(Some data may have a slight lag)
(Written by Pauline Foret, edited by Zhifan Liu)
