The week ended on a positive note for global stock markets on Friday despite central bank staunchness, as oil prices fell amid the bleak economic outlook and the resurgence of the Covid-19 outbreak in China.
The European stock market closed the week up: Paris gained 1.04%, London 0.53%, Frankfurt 1.16% and Milan 1.38%.
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 Stock Exchange is more indecisive and timid, disturbed by an options expiry day. The Dow Jones was up 0.59%, the S&P 500 was up 0.48% and the Nasdaq, which had been in the red for most of the session, closed on the edge in the green, gaining 0.01%.
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 United States, two indicators showed a slowdown in activity: home sales fell sharply for the ninth consecutive month and the Conference Board’s advanced economic index contracted for the eighth consecutive month.
On the oil market, the price of a barrel of North Sea Brent, for delivery in January, fell by 2.40%, closing at $87.62. In ten days, Brent has lost more than 11%.
As for the barrel of US West Texas Intermediate (WTI), maturing in December, it fell by 1.91%, to 80.08 dollars, after falling below 80 dollars in the session for the first time since the end of September.
Investors have mainly focused on analyzing central bankers’ statements about their upcoming monetary policy decisions, with the rhetoric still looking rather harsh 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 3.82% 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”) – caused further volatility.
Sequins on clothes
Investors welcomed better-than-expected results from apparel brands GAP (+7.40%), Ross Stores (+9.86%) or Foot Locker (+8.64%) 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 0.41% to $1.0321, while the pound gained 0.19% to $1.1883 around 20:30 GMT.
Bitcoin was nearly stable (-0.24%) at $16,640.