In Europe, the CAC 40 was up 0.49% and the Stoxx 600 was up 0.2%.
Wall Street in midnight green
Slowdown in production prices in the US
Investor Sentiment in Germany Improves – ZEW
The euro climbed back to $1.0407, its highest level since early July
by Claude Chendjou
PARIS, Nov 15 (Reuters) – European stock markets, excluding London, ended in the green on Tuesday and Wall Street also rose sharply late in the morning in New York, new data on producer prices in the United States has revealed confirms the slowdown in inflation and hopes for a lull in the rapid rise in interest rates.
Paris finished the CAC 40 up 0.49% to 6,641.66 points. The German Dax gained 0.46%. On the other hand, the UK’s Footsie lost 0.34%, which was particularly penalized by the telecom companies.
The EuroStoxx 50 Index was up 0.5%, the FTSEurofirst 300 was up 0.3% and the Stoxx 600 was up 0.2%.
Less than a week after the release of monthly consumer price inflation (CPI) data in the United States, which showed a surprise slowdown in inflation, monthly data for producer price data (PPI) showed another unexpected slowdown on Tuesday.
According to the Labor Department, October PPIs rose 0.2%m/m and 8.0%y/y, after corresponding gains of 0.2% and 8.4% in September and a consensus of Reuters +0.4% and +8.3%.
This could prompt the Fed to slow the pace of its rate hikes as markets now have a 91% probability of a limited 50 basis point rise in borrowing costs in December after four consecutive 75 point rises.
At the geopolitical level, hopes of an easing in Sino-US relations on the sidelines of the G20 summit that opened in Bali, Indonesia, also contributed to the good development of the stock markets. The leaders of the group of 20 most industrialized countries are fighting to agree on a draft final communiqué stating that most member countries condemn Russia’s invasion of Ukraine.
In Europe, new technology (+1.37%), which is very sensitive to changes in interest rates, topped the Stoxx, while telecoms (-1.06%) suffered the most, weighed down in particular by Vodafone.
The British telecoms giant fell 7.94% after cutting its free cash flow and full-year profit forecast amid rising costs.
Also in London, British Gas owner Centrica rose 3.37% in favor of launching a share buyback program.
In Paris, Orpea fell 2.33% in response to searches carried out at several of the group’s facilities on Tuesday, which sidelined the presentation of its “transformation plan”.
Teleperformance, whose shares fell last week amid allegations of labor law violations in Colombia, rallied 10.01%, helped by a buy rating from Citigroup.
Renault gained 1.55% after its president’s reassuring words on talks with its Japanese partner Nissan.
ON WALL STREET
At the close in Europe, the Dow Jones was up 0.67%, the Standard & Poor’s 500 was up 1.50% and the Nasdaq was up 2.51%.
The gloves of new technologies like Apple, Amazon and Alphabet are granted as bond yields fall from 2.32% to 4.54%.
Walmart rose 7.15% after raising its full-year sales guidance and announcing a $20 billion share buyback plan.
Home Depot rose 2.33% after the world’s leading home improvement retailer on Tuesday reported stronger-than-expected comparable quarterly sales growth.
Taiwan Semiconductor Manufacturing Co (TSMC) rose 11.67%, helped by an equity investment from Warren Buffett’s group, Bershire Hathaway (+1.01%).
Chinese corporations such as Alibaba (+11.22%), Baidu (+10.11%), Pinduoduo (+10.10%), JD.Com (+8.23%) and Tencent Music Entertainment (+26 .85%).
THE INDICATORS OF THE DAY
Manufacturing activity in the New York area has rebounded more-than-expected since the beginning of the month, with an Empire State Index up 4.5, the highest since July, after -9.1 in October, the monthly survey shows the regional branch of the Federal Reserve on Tuesday.
Investor sentiment in Germany has improved further since the beginning of November with an index of -36.7 after -59.2 in October, buoyed by hopes of an imminent fall in inflation, according to the survey by the ZEW Institute for Economic Studies.
According to the second GDP estimate released by Eurostat, economic growth in the euro zone slowed to 0.2% in the third quarter.
According to INSEE, the consumer price index in France, harmonized according to European standards, was confirmed in October at +7.1% over a year.
The dollar, hitting a low since August, fell 0.28% against a basket of benchmarks, punished by a return in risk appetite in response to signs of slowing US inflation.
The euro took the opportunity to rise to $1.0375 (+0.48%). The single European currency has hit a high of $1.0407 since July 1, helped by a recovery in investor morale in Germany and comments from Banque de France governor Franois Villeroy de Galhau who views ECB rates will continue to rise above 2%.
Bond yields are being influenced by producer price numbers in the United States: the US 10-year bond is trading at 3.8106%, down about 5 basis points, while its German counterpart is trading at 2.114%, down about 6 basis points .
Oil prices have been volatile, caught between the dollar’s decline and worries about Chinese demand: at the time the European markets closed, Brent was up 0.27% at $93.39 a barrel and American light crude (West Texas Intermediate, WTI ) 0.38% $86.20 per barrel.
TO FOLLOW WEDNESDAY:
UK inflation and US retail sales
THE MARKET SITUATION:
(Some dates may have a slight shift)
THE CLOSURE IN EUROPE Indices Last Var. Var. %YEAR PERFORMANCE
Eurofirst 300 points 1710.87 +5.06 +0.30% -9.49%
Eurostoxx 50 3,915.09 +27.58 +0.71% -8.92%
CAC 40 6,641.66 +32.49 +0.49% -7.15% Dax 30 14,378.51 +65.21 +0.46% -9.48% FTSE 7,369.44 -15.73 -0.21 % -0.20% SMI 11026.22 +26.63 +0.24% -14.36%
Values follow Paris and Europe:
THE TREND ON WALL STREET Indices Last Var. Var. %YEAR PERFORMANCE
Dow Jones Points 33776.06 +239.36 +0.71% -7.05% S&P 500 4017.67 +60.42 +1.53% -15.70% Nasdaq 11481.12 +284.90 +2.54% -26.61%
Wall Street Meeting Report: “The Day Ahead” – update on the next Wall Street meeting
Previous Price Change % YTD Euro/Dlr 1.0369 1.0325 +0.43% -8.79% Dlr/Yen 139.33 139.88 -0.39% +21.09% Euro/Yen 144.50 144, 44 +0.04% +10.88%
DLR/CHF 0.9443 0.9429 +0.15% +3.52% Euro/CHF 0.9795 0.9738 +0.59% -5.54%
Stg/Dlr 1.1884 1.1752 +1.12% -12.16% Index $106.3450 106.6600 -0.30% +10.58%
Var. % YTD Gold Spot 1770.48 1771.80 -0.07% +16.71%
last var. spread/bund
Bund futures 139.15 +0.61
10-year Bunds 2.11 +0.01
Bund 2 years 2.17 +0.01
10-year OATs 2.60 +0.01 +49.30
10-year government bonds 3.81 -0.06
Government bonds 2 years 4.38 -0.03
Previous Price Var Var.% YTD US Light Crude 86.21 85.87 +0.34 +0.40% +40.84%
Brent 93.40 93.14 +0.26 +0.28% +41.45%
(Written by Claude Chendjou, voiced by Sophie Louet)