European stock market ends a challenging week in style – 05/13/2022 at 18:25


EUROPEAN STOCK MARKETS END UP

Letitia Volga

PARIS (Reuters) – European stocks ended Friday higher after a turbulent week for risky assets amid worries about inflation and the global economy.

In Paris, CAC 40 added 2.52% to 6,362.68 points. Britain’s Footsie added 2.55% and Germany’s Dax added 2.1%.

The EuroStoxx 50 rose 2.49%, the FTSEurofirst 300 rose 2% and the Stoxx 600 rose 2.14%.

The latter showed a weekly increase of 0.83%, which allowed him to break the cycle of decline from four weeks in a row. CAC 40 added 1.67% in a week.

This week, stock markets experienced significant fluctuations, investors feared a sharp slowdown in the global economy due to the tightening of the monetary policy of central banks, primarily the United States, amid high prices.

Federal Reserve Chairman Jerome Powell said on Thursday evening that the fight against inflation will not be painless, while reiterating that he still expects a half-percentage rate hike at the institution’s next two meetings.

These statements appear to have helped boost stocks and also served as encouraging signals about the health crisis in China.

But analysts at BofA warn that while markets may benefit from a short-term recovery, they could subsequently resume a down move that has seen the US Nasdaq 100 fall more than 25% since the start of the month.

“The week has been extremely erratic, oscillating between inflation and growth worries. This is a confrontation between these two dynamics,” summed up Kim Rupert of Action Economics.

At the moment, the major Wall Street indices have risen from 1.37% to 3.59%.

VALUES

All segments of the sector in Europe are in positive territory, from the telecoms Stoxx index (+1.07%) to transport and leisure (+4.83%).

At the top of the CAC 40 index, Veolia, Renault and STMicroelectronics rose from 3.75% to 5.99%.

The casino received 9.85% in response to information from Les Echos about the alleged interest of Engie and TotalEnergies in a subsidiary of renewable energy distributor GreenYellow.

EXCHANGE/COURSE

In the foreign exchange market, the “dollar index”, which measures the evolution of the dollar against the base basket, is 0.31%, but has been moving higher for the sixth week.

The euro rose to more than $1.04, a day after the low since January 2017 at 1.0352.

Bitcoin is up 5.09% after falling the day before to its lowest level in 16 months. Sovereign bond yields are rising after a sharp decline in the past few days. The price of 10-year Treasuries rose nearly nine basis points to 2.904% and its German equivalent ended at 0.95%.

BUTTER

The oil market has risen sharply but regains only a small part of the ground lost in previous sessions, and after two weeks of progress, it is moving towards negative weekly dynamics, which is a sign that fears about global demand still prevail due to the risk associated with sanctions. . against Russia.

The price of Brent crude rose 3.09% to $110.77 a barrel, while US light oil (West Texas Intermediate, WTI) rose 3.51% to $109.86.

INDICATORS OF THE DAY

U.S. household sentiment fell more-than-expected to 59.1 in May, according to preliminary results from a study by the University of Michigan.

(Written by Letitia Volga, edited by Sophie Luet)

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