The main indices rebounded by more than 2%, which allowed them to end the week on a largely positive note. Only the SMI ended with a modest advance (+1.25%).
Global stock markets were granted a little relief on Friday at the end of a turbulent week by the persistence of inflation, a threat to global growth which triggered movements towards safe havens in recent sessions.
In Europe, the indices rebounded by more than 2%, which allowed them to end the week on a largely positive note. Paris ended up sharply by 2.52%, Frankfurt by 2.10% and London by 2.55%. In Zurich, the SMI gained 1.25%.
The New York Stock Exchange was also driven by a technical rebound after a week of sliding. The Dow Jones gained 1.57%, the Nasdaq index, with strong technological coloring, climbed 4.22%, and the broader S&P 500 index rose 2.67%. The VIX index, which measures market volatility, was down.
That said, the economic and geopolitical context is far from being conducive to a real stock market upturn, according to experts. Last illustration: the leading indicator of the day, US consumer confidence, deteriorated sharply in May.
Basically, “nothing changed today, so today’s gains are largely attributable to purely technical factors and their durability has yet to be confirmed in the coming week,” comments Konstantin Oldenburger, analyst at CMC Markets.
Inflation indicators that remain very high in the United States caused a stir this week for risky assets. President Joe Biden has made the issue a “national priority,” but central bank (Fed) Chairman Jerome Powell has warned that slowing it down will not be painless.
He said he favored two 0.5 percentage point rate hikes in the next two meetings “if the economy develops as expected” and, according to Bloomberg, he reiterated that the Fed was not considering a hike. steeper by 0.75 points, which reassured stock market investors.
For its part, the European Central Bank suggests a first increase in key rates in July, even if it means weighing on growth.
“Concerns are piling up on the global growth cycle and fueling risk aversion and market volatility,” summarizes a market bulletin from Edmond de Rothschild AM.
“Inflationary pressures are omnipresent and signs of a slowdown in activity are multiplying. Confinements in China and the war in Ukraine are fueling the risk of food shortages, and maintaining pressure on commodity prices and disruptions in global supply chains, ”support its experts.
Elon Musk blows hot and cold
Elon Musk has sent mixed signals about his plan to take over Twitter: two hours after he said he was suspending the acquisition pending details on the number of fake accounts, the whimsical boss assured that he was “still committed” to carrying out the transaction well. The title fell by nearly 8% around 4:30 p.m. GMT.
The popular energy sector
Tensions over Russian gas supplies to Europe continue to worry investors.
Companies in the energy sector benefited, especially those engaged in renewable energies. Siemens Energy gained 5.28%, RWE 2.73%, Neoen 6.45%, Engie 2.51%.
Oil breaks above $110
Oil prices accelerated their rise on Friday, the two black gold benchmarks having exceeded 110 dollars a barrel, galvanized by fears of possible supply restrictions, in particular with the proposed European embargo on Russian oil.
Around 4:30 p.m. GMT, a barrel of Brent from the North Sea for delivery in July gained 3.69% to 111.40 dollars.
The barrel of American West Texas Intermediate (WTI) for delivery in June took 3.84% to 110.20 dollars.
Something to please the oil sector: BP (+4.17%), Shell (+3.10%), TotalEnergies (+3.46%).
After reaching a new high in five years against the European currency which fell below the bar of 1.04 dollars for one euro on Thursday, the dollar lost 0.28% against the euro, trading at 0.9606 around 4:30 p.m. GMT.
Bitcoin recovered (+5.91% to 30,690 dollars) after hitting its lowest since the end of 2020 on Thursday in a context of investor withdrawal from cryptocurrencies.