Paris (awp/afp) – The week ended Friday on a positive note for global stocks despite central bank steadfastness, as oil prices fell amid the bleak economic outlook and the renewed Covid-19 outbreak. China.
The European stock market closed the week up: Paris gained 1.04%, London 0.53%, Frankfurt 1.16% and Milan 1.38%. In Zurich, the SMI gained 1.17%.
The Eurostoxx 50, which includes 50 large European companies, rose by 1.20% and is 20% above its last low at the end of September, a situation called a “bull market” in stock market jargon.
The New York Stocks were more mixed after a higher open. At around 16:55 GMT, the Dow Jones was up 0.51%, the S&P 500 was up 0.25% and the Nasdaq was down 0.19%.
This week, the indices have moved “in a fairly moderate price range, which increasingly looks like a period of consolidation,” said Michael Hewson, an analyst at CMC Markets.
For Alexandre Baradez, an analyst at IG France, there is a gap between “slowing activity indices” and “market positioning”. According to him, stock markets could start falling again next week to better adjust to a gloomy macroeconomic environment.
In the oil market, US WTI for December delivery, the benchmark US variety, fell nearly 5% on Thursday and lost another 3.29% to $78.97 on Friday around 16:50 GMT, falling below the threshold. $80 for the first time since the end of September.
A barrel of North Sea Brent for January 2023 delivery fell 3.13% to $86.97.
“Oil is heading for a sizable weekly loss” of 11% for WTI and 9.5% for Brent “on heightened fears over bleak demand outlook,” said FXTM analyst Lukman Otunuga .
Investors are mostly busy analyzing central bankers’ statements about their next monetary policy decisions, with talk still looking pretty tough on both sides of the Atlantic.
“The Federal Reserve is clearly concerned that ‘pivot dovish’ speculation,” speculation that the US central bank will soon slow its rate hikes, “could undermine its tightening efforts,” the analyst said. Craig Erlam. “Oanda, to explain the firmness of the latest statements.
Key rate hikes will continue in the eurozone, Christine Lagarde reiterated in a speech in Frankfurt on Friday. The president of the ECB has estimated that the recession threatening the eurozone will not be sufficient to stem the rise in prices.
On the bond market, interest rates on government bonds in Europe and the United States fluctuated moderately. That of 10-year American debt was worth 3.81% against 3.76% the day before.
In addition, the expiration of stock and index options, as well as so-called index futures contracts – various futures contracts worth several billion dollars (known as the “three witches session”) – support trading volumes and can cause further volatility.
Sequins on clothes ___
Investors hailed better-than-expected results from apparel brands GAP (+4.01%), Ross Stores (+12.33%) and Foot Locker (+6.86%) on Wall Street.
In London Next gained 2.85% and in Madrid Inditex, Zara’s parent company, gained 1.30%.
On the side of currencies and bitcoin ___
The euro lost 0.08% to $1.0354, while the pound gained 0.33% to $1.1904 around 16:45 GMT.
Bitcoin remained stable (-0.13%) at $16,660.