Trading week – European markets plateau

European markets ended close to balance and did not benefit from lower-than-expected inflation in the United States. The CAC 40 index lost 0.03% to 7,568.82 points, bringing its weekly decline to 0.37%. The Paris market is stagnating after a record last week for its main index at more than 7,600 points. The EuroStoxx50 fell by 0.07% to 4521.89 points. The trend was more favorable in the United States, where the Dow Jones index rose by 0.17% around 17:30.

The most anticipated statistics of the session assured investors of a reduction in inflationary pressures. The PCE price index, one of the Fed’s preferred measures of inflation, fell 0.1% in November from the previous month. It posted its first decline since April 2020.

Core inflation was 3.2% annualized in November after 3.4% in October and a 0.1% monthly pace, compared to the consensus of 3.3% and 0.2%.

According to the CME FedWatch barometer, investors now assign a more than 75% chance of a rate cut in March 2024.

Also in the United States, the University of Michigan consumer confidence index stood at 69.7 in December, compared to the consensus of 69.4 and 61.3 in November.

Durable goods orders rose 5.4% in November in the United States, clearly beating the +2.3% consensus. They fell by 5.1% in November.

These economic data point to a soft landing for the US economy against the backdrop of disinflation. A stock-friendly cocktail that explains the recent weeks’ rally.

On the value side, investors appreciated the upcoming sale of Nexity’s personal services business. In Europe, adidas and Puma slumped as Nike fell, sounding a warning against its year-on-year growth.

source: AOF

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