New York (awp/afp) – World stock markets generally welcomed the slowdown in inflation in the United States in August on Friday, in the wake of new announcements of economic support in China.
In Europe, the Frankfurt Stock Exchange ended sharply up 1.22%, setting a new record closing at 19,473.63 points. Paris took 0.64% and London 0.43%. In Zurich, the SMI advanced by 0.20%.
In New York, the Dow Jones (+0.33%) recorded a new closing record, while the Nasdaq index fell by 0.39% and the broader S&P 500 index by 0.13%.
“The news of the day is that we are finally getting closer to 2% inflation in the United States,” Nathalie Benatia, economist at BNP Paribas AM, explained to AFP.
The PCE price index, an inflation indicator favored by the American Federal Reserve (Fed), slowed in August in the United States, to 2.2% year-on-year, compared to 2.5% in July, according to data published Friday.
Good news for the markets, which anticipate a more vigorous continuation of the Fed’s rate reduction policy intended to stimulate economic activity, without being afraid of reviving inflation in the United States.
American consumer confidence also improved more than expected in September thanks to the fall in inflation, the index climbing to 70.1%, compared to 67.9% in August, according to the final estimate. from the University of Michigan released Friday.
“These inflation figures reinforce the Fed’s position on two fronts: they justify the first rate cut of 0.50 points in September and allow it to give priority to the labor market,” summarized Christophe Boucher, director of inflation. investments from ABN AMRO Investment Solutions.
The bond market reacted in this direction. The yield on 2-year US government bonds rose to 3.56% compared to 3.63% the day before at closing.
In Europe, inflation also slowed: in France, it fell to 1.2% year-on-year in September, a sharp decline compared to the 1.8% recorded in August. Inflation in Spain fell to 1.5% in September year-on-year, compared to 2.3% the previous month.
The indices were also driven upward by new measures announced on Friday by Beijing to revive its economy, with a reduction in the required reserve ratio (RRR) of banks, which should make it possible to inject the equivalent of 127 billion euros of liquidity on the markets.
This plan caused the Asian stock markets to jump: Hong Kong ended up 3.55% at 20,632.30 points, exceeding 20,000 points for the first time since August, and signing, at +12.5%, its best performance weekly since 1998.
Shanghai gained 2.88% and Shenzhen soared 6.05%, both places recording their strongest one-week gain since November 2008. The Tokyo Stock Exchange ended with a gain of 2.32%.
Nvidia sanctioned ___
The Nasdaq index weakened at the end of the session, after the publication of information from the Bloomberg agency according to which the Chinese authorities are seeking to dissuade local companies from buying chips designed by the American giant Nvidia.
The government thus intends to stimulate the Chinese semiconductor industry and reposition it in the race for artificial intelligence (AI).
Besides Nvidia (-2.13%), the big American names in the sector also suffered, notably Micron (-2.17%) and Marvell Technologies (-3.35%).
Moncler wanted ___
The world number one luxury brand LVMH (+3.67%) announced Thursday a 10% stake in a holding company controlled by Moncler CEO Remo Ruffini, who owns 15.8% of the Italian group known for its down jackets. high end.
In Milan, Moncler soared by 11.18%.
The car is driving ___
European automobile stocks are benefiting from good news coming from China, one of their main markets. In Germany, Volkswagen gained 2.21%, BMW 3.31% and Mercedes 3.08%. In France, Stellantis gained 4.00% and Renault 3.61%.
Stable oil ___
Oil prices rose at the very end of the session, awakened by an Israeli strike presented as targeting the headquarters of the pro-Iranian movement Hezbollah.
The price of a barrel of Brent from the North Sea for delivery in November increased by 0.53%, to close at $71.98.
A barrel of American West Texas Intermediate (WTI) of the same maturity gained 0.75%, to $68.18.
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