THE INCREASE IN EUROPE WITH BANKS CONTINUES AFTER THE ECB
PARIS (Reuters) – Major European equity markets rallied tentatively at the start of the session on Friday, still led by bank stocks the day after an unprecedented rate hike by the European Central Bank (ECB) and the commitment of the President of the La US Federal Reserve (Fed) against inflation.
In Paris, the CAC 40 advanced 0.97% to 6,185.41 points around 08:15 GMT. In London the FTSE 100 takes 0.99% and in Frankfurt the Dax gains 1.07%.
The EuroStoxx 50 index gained 1.21%, the FTSEurofirst 300 0.75% and the Stoxx 600 1.02%.
For the week as a whole, the Parisian index gained 0.32% at this stage and the pan-European Stoxx 600 by 0.58%.
On Thursday the ECB decided to raise interest rates by 75 basis points, while in the United States, where a similar hike is widely expected on 21 September, Fed Chairman Jerome Powell said the latter would continue to act. “with force” to counter inflation.
Far from scaring the markets, these two announcements continue to support bond yields so much so that the two-year German Bund rate, the most sensitive to the evolution of the cost of credit, rose Friday in session to an 11-year high of 1.399%. having already skipped 24 basis points the day before.
This increase drags the European banking sector, whose sector index is up 1.96% after a gain of 2.3% on Thursday.
In Paris, Société Générale won 3.14%, BNP Paribas 3.08% and Crédit Agricole 2.23%.
Elsewhere in Europe, Deutsche Bank, UniCredit and Barclays gained 1.67% to 2.72%.
The basic resources sector is also highly sought after (+ 3.93%) in the wake of the decline in the dollar (-1.06% against a basket of reference currencies) and the slowdown in the rise in consumer prices in China in August ( + 2.5% on an annual basis, after + 2.7% in July and a consensus of + 2.8%.
Arcelormittal, Aperam and Eramet take 2.91%, 4.79% and 6.18% respectively. London-listed mining groups Anglo American, Glencore and Rio Tinto increased 5.83%, 4.45% and 4.50% respectively.
As regards the economic indicators in Europe and the United States, the only data on the agenda is industrial production in France, which in July recorded a more marked decline than expected (-1.6% against a consensus of -0.5%).
The rest of the session could be animated by the gas crisis, a council of European energy ministers will be held in Brussels on Friday.
(Written by Claude Chendjou, edited by Bertrand Boucey)