(New York) Global markets rose overall on Thursday, while remaining cautious of persistent inflation in the United States and Europe and an upsurge in COVID-19 cases in Europe.
The European stock markets ended up in the green: Paris took 0.20%, Frankfurt 0.10% and Milan 0.26%. London for its part finished at a peak in 20 months (+ 0.60% to 7384.18 points) driven by mining stocks, good results and a declining sterling, which favors multinationals which repatriate their profits in British currency.
The flagship Wall Street index closed down 0.44%, weighed down by poor Disney results, while the tech-heavy NASDAQ gained 0.52% and the expanded S&P 500 index, 0.06%.
Investors’ minds are focused on price hikes and the response of central banks.
While inflation has set the tone in the markets for months, consumer prices in the United States climbed 6.2% year on year in October, an annual pace not seen since 1990.
On the Old Continent, the European Commission, for its part, expects inflation in the euro zone to settle next year to 2.2%, after “a peak” at 2.4% this year.
“At some point, central banks will have to redo their work”, namely to control inflation, “and if price increases remain sustained, key rates will have to be raised”, explains Denis Ducatel, Milleis financial investment expert. Bank.
“But the hypothesis of transient inflation is still relevant and so far the Fed has communicated very well so as not to create any bad surprises for the market,” he adds.
Fears related to COVID-19 cases and possible lockdowns are resurfacing in Europe where contaminations in the last seven days have increased by 17% compared to the previous week, according to data compiled by AFP.
In Germany, contaminations have crossed the threshold of 50,000 daily cases and the future Chancellor Olaf Scholz estimated that “a great many necessary measures are needed to get through this winter”. The Netherlands has recorded a record of new daily cases.
Mr. Ducatel notes that finally, “the market takes note of all this without wavering”.
After a sharp rise on Wednesday, sovereign debt interest rates rose slightly in Europe on Thursday. The bond market was closed in the United States.
The air is struggling
Faced with the evolution of the epidemic in Germany, the airline Lufthansa lost by 4.37% and the operator of the airport of Frankfurt Fraport by 4.33%.
The situation is no less complicated elsewhere in Europe. In Paris, Air France-KLM sold 3.46%. In London, IAG (British Airways, Iberia) lost 2.52% and tour operator TUI 3.47%.
Mining soar
In Paris, ArcelorMittal jumped 3.66% after having achieved in the third quarter its profit “the highest since 2008”.
In London, Anglo American (+ 5.87%), Antofagasta (+ 4.33%), Glencore (+ 4.12%) or even BHP Group (+ 3.89%) benefited from a fall in the pound sterling and rising metal prices.
Disney without magic
Disney suffered (-7.07%) after the publication on Wednesday of results below expectations. The entertainment giant only gained two million subscribers to its Disney + online video service in the quarter ended at the end of September, when the market expected to quadruple.
The dollar at its highest
The euro tumbled Thursday to depths more seen for 15 months against the US dollar, under pressure from US inflation, but also fears of a possible entry of Russian troops into Ukraine.
The single currency fell to $ 1.1443 per euro for the first time since July 2020. By 10 p.m. GMT, it was almost at equilibrium, at $ 1.1452 per euro.
Bitcoin was up 1.71% to $ 65,073, with some investors seeing cryptocurrency as a potential safe haven in the face of soaring inflation.
Oil is falling back
Also supported by concerns about a possible new Ukrainian crisis, oil prices picked up late in the session Thursday the day after a fall.
In London, a barrel of Brent from the North Sea for delivery in January closed slightly up 0.27% to 82.87 dollars, after losing up to 1.18% in session.
As for the barrel of West Texas Intermediate (WTI) for delivery in December, it nibbled 0.30% to finish at 81.59 dollars, in New York.