Global markets advance, US inflation slows further

Paris (awp/afp) – World markets were in the green on Friday after the release of a bigger-than-expected decline in US PCE inflation, the last major gauge ahead of the long Christmas weekend.

Around 14:45 CET on Wall Street, the Nasdaq gained 0.48%, the S&P 500 gained 0.49% and the Dow Jones gained 0.28%.

In Europe, stock indexes rose slightly after a stable first part of the session. Paris rose by 0.14%, Frankfurt by 0.16% and Milan by 0.31%. In Zurich, the SMI fell by 0.02%.

The London Stock Exchange closed at 12:30 GMT, as it did every last session before Christmas, gaining 0.04%.

Inflation in the United States fell sharply to 2.6% on the year in November, moving closer to the 2% target for the PCE index, the gauge preferred by the U.S. central bank.

And October’s downward revision showed that inflation had actually already fallen below 3.0% year-on-year to 2.9%.

Consumer spending rose 0.2% in November, the start of the holiday season, from October (compared to 0.1% in October from September).

Household income rose 0.4% compared with 0.3% in the previous month.

“Incomes are up, spending is up and inflation is down. Even the savings rate is up slightly. This is the best economic news in a long time and comes just in time for the holidays,” commented Robert Frick, economist. at Navy Federal Credit Union.

Markets hope that the US economy will avoid recession and that the US central bank will start cutting its key rates from the first half of 2024 on the back of slowing inflation. The so-called “Goldilocks” scenario, which is more likely to be confirmed at the moment.

In the bond market, interest rates on government loans fell slightly around 14:45 GMT. The 10-year U.S. Treasury note yielded 3.86% after ending at 3.89% on Thursday.

In addition, orders for durable goods rose significantly in November and by much more than expected, driven mainly by new aircraft orders.

Nike falls ___

Nike announced a $2 billion savings plan Thursday night, as well as a downward revision to its annual revenue forecast. The sports giant saw an uneven sales performance last quarter, increasing in China but falling in the United States. A decline which is expected to continue and which worries the markets.

The company’s shares lost 11.57% on Wall Street.

Karuna redeemed ___

US-based Bristol Myers Squibb will strengthen its position in psychiatric diseases with the $14 billion acquisition of biotech Karuna Therapeutics, also of the US, announced on Friday.

Karuna’s action drew more than 48% in New York.

Oil rebounds slightly, bitcoin falls ___

After falling on Thursday following Angola’s announcement to withdraw from the Organization of the Petroleum Exporting Countries (OPEC), oil prices rebounded slightly on Friday in a context still marred by tensions in the Red Sea.

Brent North Sea crude for February delivery rose 1.02% to $80.28 a barrel by 14:45 GMT. Its US counterpart, West Texas Intermediate (WTI), due in January, rose 0.96% to $74.59.

On the foreign exchange market, the euro gained 0.19% against the dollar to $1.1032 per euro.

Bitcoin fell 1% to $43,565.

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