European stock markets scattered, Wall Street continues its rise

New York (awp/afp) – European stock markets ended in disarray on Thursday, while Wall Street returned to summits thanks to revised US growth that confirmed a slowdown in the United States economy.

In Europe, Paris closed down 0.16% and Frankfurt lost 0.27%, as did London. In Zurich, the SMI fell by 0.11%.

“The approaching holidays are already casting their shadow and there will be virtually no significant events or impulses during the remaining four trading days,” said independent analyst Andreas Lipkow.

Yet Wall Street roared again. The Dow Jones gained 0.87%, the Nasdaq 1.26% and the broader S&P 500 returned 1.03%.

“When the market is ripe for a correction, as it is right now, and it doesn’t stop, it’s a very good indicator of a strong uptrend,” commented Tom Cahill, an analyst at Ventura Wealth Management.

After a slight air gap on Wednesday, the New York indexes are back in the right direction with the help of daily macroeconomic indicators.

Growth in the US was revised downward for the third quarter from 5.2% annualized to 4.9%.

The impression of a slowdown in the economy in the United States is confirmed by the barometer of the branch of the American central bank (Fed) in Atlanta, which estimates that in the fourth quarter it will grow at an annualized rate of only 2.7%, noted Tom Cahill.

“The most important news was primarily the reduction in inflation estimates,” Michael Pearce of Oxford Economics said in a note.

The Commerce Department report showed that prices, excluding energy and food, rose just 2% in the third quarter at an annual pace, in line with the Fed’s long-term target.

“This is consistent with the Fed’s more dovish message and, if confirmed, opens the door to an expected rate cut,” the economist continued.

In the bond market, the yield on the 10-year U.S. Treasury note rose to 3.89%, compared with 3.85% on Wednesday.

Optimistic Micron ___

Wall Street also benefited Thursday from better-than-expected results from microprocessor maker Micron (+8.63%), reported Wednesday after the stock market.

Micron CEO Sanjay Mehrotra has expressed confidence in the group’s business performance improving in fiscal 2024 (ending August) and predicts record demand in 2025.

Its competitors AMD (+3.28%), Intel (+2.88%) or Broadcom (+1.52%) benefited from the aspiration.

After Wednesday’s weakness, technology stars shone again, especially Nvidia (+1.83%) and Alphabet (+1.53%).

Delivery Hero derailed ___

The stock of delivery company Delivery Hero (-10.87%) was abandoned after UBS said on Wednesday about the problems in the market in South Korea.

Commerzbank refunds ___

Germany’s No. 2 bank Commerzbank (+1.33%) was on the lookout after it announced on Wednesday that it had received the green light from the European Central Bank (ECB) for a new share buyback program of up to 600 million euros. .

BASF will rest ___

German group BASF (+0.04%) announced on Thursday the signing of an agreement to transfer the gas and oil activities of its subsidiary Wintershall Dea to British Harbor Energy (+21.11% in London), clearing the way for the withdrawal of the chemical giant. from fossil fuels.

Oil Extends Its Losses ___

Oil prices fell on Thursday after Angola announced its exit from the Organization of the Petroleum Exporting Countries (OPEC), with prices already weighing on fears that demand for the black gold will be undermined by an economic recession next year.

Brent North Sea crude for February delivery fell 0.39% to $79.39 a barrel. Its US equivalent, a barrel of West Texas Intermediate (WTI), for delivery in the same month, lost 0.44% to $73.89.

On the foreign exchange market, the euro crossed the symbolic level of $1.10 (1.1008), which is 0.60% higher against the dollar.

Bitcoin rose 0.87% to $43,990.

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