• Sun. Oct 17th, 2021

Europe ends up, results support the trend – archyde

Byeditorial

Oct 14, 2021

EUROPEAN SCHOLARSHIPS END ON THE RISE

by Claude Chendjou

PARIS (Reuters) – The main European stock markets ended up, driven by strong corporate results but on Wall Street the trend was hesitant at midday after the publication of consumer prices in September in the United States which show a acceleration of inflation.

In Paris, the CAC 40 finished up 0.75% to 6,597.38 points. The British Footsie took 0.16% and the German Dax 0.68%.

The EuroStoxx 50 index advanced 0.7%, the FTSEurofirst 300 0.69% and the Stoxx 600 0.7%.

Inflation has been a concern in the markets for several months amid rising energy prices and fears about the global economic outlook as the Federal Reserve prepares to tighten monetary policy. Economists expect an announcement from the central bank at its November 2-3 meeting.

The Consumer Price Index (CPI) in the United States rose 0.4% in September after climbing 0.3% in August, the Labor Department said on Wednesday. Over one year, it is up 5.4%, after gaining 5.3% in August, well above the Fed’s 2% target.

A WALL STREET

At the time of the close in Europe, the Dow Jones was down 0.30%, while the Standard & Poor’s 500 was virtually flat. The Nasdaq, on the other hand, advanced 0.43%.

Along with inflation, the session is also buzzing with third quarter corporate results, but investors are being cautious ahead of the 6:00 p.m. GMT report of the US Federal Reserve’s September monetary policy meeting.

The banking sector is down (-1.25%), including JPMorgan Chase, first of the big American banks to publish its financial accounts, which gives 2.14% despite the announcement of a quarterly profit higher than forecasts. The banking compartment is also suffering from the fall in US long bond yields.

The world leader in asset management, Blackrock, on the other hand, advanced 4.29% after exceeding expectations on its quarterly profit.

The technological compartment (+ 0.26%) and that of communication services (+ 0.25%) are the rare indices of the S & P-500 to post gains.

Delta Air Lines, down 4.61%, is penalized by a warning on its fourth quarter results linked to soaring kerosene prices.

VALUES

In Europe, the world leader in luxury LVMH, which published its third quarter results on Tuesday, supported the trend with a gain of 3.15%, thanks to organic sales growth of 20% on the past quarter.

In Frankfurt, the professional software specialist SAP gained 3.9% after raising its forecasts for this year.

The biggest sector increase in the Stoxx 600, the technology index climbed 1.90%, while financials and energy were the only ones to have finished in the red.

In Paris Atos, Dassault Systèmes and Capgemini gained 2.75%, 3.48% and 4.04% respectively.

On the SBF120 (+ 0.72%, Spie (+ 8.45%) finished at the top of the index after announcing its withdrawal from the auction process for the acquisition of Equans, a subsidiary of Engie (+0 , 65%).

On the downside, Just Eat Takeaway.com lost 1.71%, penalized by weaker than expected growth in online meal orders in the third quarter.

RATE

In the bond market, yields fall due to an adjustment of positions after several sessions of increases. Those of 10-year Treasuries contracted 2.6 basis points to 1.5542%.

German Bund yields of the same maturity, for their part, fell 2.7 points to -0.127%.

CHANGES

At exchange rates, the greenback fell 0.34% against a basket of benchmark currencies while the euro rose 0.36%, approaching $ 1.16.

OIL

On the oil market, prices fell well below $ 85 after the downward revision of growth forecasts for the world economy for this year by the International Monetary Fund (IMF).

Russian President Vladimir Putin said on Wednesday, however, that oil could hit the $ 100 a barrel mark. He added that Moscow and its OPEC partners were, however, working to stabilize the market.

At the close of stock markets in Europe, the barrel of Brent fell 0.14% to 83.24 dollars and US light crude was stable at 80.63 dollars.

(Report Claude Chendjou, edited by Jean-Michel Bélot)