Paris stood out (+1.13%), thanks to the more notable than expected jump in LVMH sales, which enabled the CAC 40 to break a new record. Frankfurt (+0.16%), London (+0.24%) and Milan (-0.01%) were less cheerful.
The stock markets are welcoming the latest US macroeconomic data, which points to an imminent end to the monetary tightening cycle, which is a source of delight for investors.
In Europe, the Paris Stock Exchange stood out (+1.13%), thanks to the more notable than expected jump in quarterly sales of LVMH, which enabled the CAC 40 to break a new record for the third consecutive session. The places of Frankfurt (+0.16%), London (+0.24%) and Milan (-0.01%) were less cheerful. In Zurich, the SMI gained 0.24%.
After opening slightly higher, Wall Street indices accelerated. Around 3:55 p.m. GMT, the Nasdaq rose by 1.40%, the S&P 500 by 0.68% and the Dow Jones by 0.48%.
The publication of the wholesale price index in the United States revealed a decline of 0.5% over one month in March, more than expected by analysts, due in particular to the drop in the cost of energy.
Over twelve months, wholesale prices only rose by 2.7% against 4.9% in February. “Producer prices are clearly on the downward slope (…), this makes optimistic”, commented Chris Low chief economist for FHN Financial.
This is good news on top of a slowdown in the rise in consumer prices in March. But core inflation, which excludes energy and food prices, accelerated to 5.6% from 5.5% in February.
The economy is indeed in a process of “disinflation, the signals are multiplying”, which suggests that the “high point of interest rates” is close according to Sophie Chauvellier, manager of Dorval AM.
On the labor market side, weekly jobless claims rose from 11,000 to 239,000 last week, a sign of a slowing economy.
In the minutes of the last monetary meeting in March of the American Federal Reserve (Fed), the institution’s team of economists estimated that the recent banking difficulties could lead “to a slight recession in the United States -United”.
“A slowdown in activity has always been anticipated” with the monetary tightening of the Fed but it “risks being increased by the banking crisis and the tightening of credit conditions”, comments to AFP Sophie Chauvellier.
On the bond market, sovereign debt interest rates were stable. But the dollar is increasingly penalized by the idea that the Fed will stop raising its rates. It traded Thursday at a year-to-date low against the euro. Around 3:55 p.m. GMT, the greenback fell 0.55% to 1.1052 dollars for one euro.
LVMH or the power of luxury
The growth in sales of the luxury giant LVMH, well above the forecasts of analysts who note the strong rebound in Asia, caused the first European capitalization to jump by 5.65%, to its highest historical level.
In Paris, where the luxury sector accounts for a third of the index, Hermès also took 3.07%, Kering 2.62%, while elsewhere in Europe Richemont rose 4.39% and Burberry 2.52 %.
The tech sector is on the rise
The idea that interest rates could soon stop rising, or even fall, by the end of the year benefited technology stocks, which need low rates to finance their growth.
In New York, Apple took 2.08%, Amazon 3.05%, Meta 1.97% and Uber 1.98%. In Paris, Atos gained 4.11% and in Frankfurt, Infineon rose 1.98%.
On the side of currencies and oil
Oil prices were held back by fears surrounding US growth.
Around 3:50 p.m. GMT, a barrel of Brent from the North Sea for delivery in June yielded 0.86% to 86.58 dollars.
Its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in May, fell 0.53% to 82.81 dollars.