(Paris) Stock markets rose on Friday, delighted with falling inflation figures in the euro zone and the United States, the icing on the cake of a rather positive first quarter for equity markets.
After a fifth rising session this week, Paris gained 0.81%, Frankfurt 0.69% and Milan 0.34%. Over the first three months of the year, they increased by 12% to 14%.
London rose 0.15% on Friday and 2.42% in the quarter.
In New York, the NASDAQ stands out with a rise of 16% since the start of the year, while the Dow Jones has been stable over the period. The S&P is up 6.4%.
Around 11:55 a.m. EST, the Dow Jones was up 0.74%, the S&P 500 0.85% and the NASDAQ 1.10%.
The euro zone’s year-on-year inflation rate fell in March for the fifth consecutive month, to 6.9%, after 8.5% in February, thanks to the lull in energy prices, according to Eurostat . Analysts had expected 7.1%.
“Core” inflation, which excludes energy and food, the prices of which are volatile, from the consumption basket, however rose again to 5.7% over one year.
“Today’s data added to other evidence of inflationary pressures confirms in our view our scenario of three additional hikes of 25 basis points” in rates from the European Central Bank (ECB), commented the economists of Axa Investment managers in a note.
As for the PCE index, the inflation indicator favored by the American central bank to calibrate its monetary policy, it slowed more than expected by analysts polled by Bloomberg, to 5% in February over one year, and to 0, 3% over one month.
Another positive point for the evolution of inflation according to the participants: consumer spending has stabilized (+0.2%).
Inflation remains well above the US Federal Reserve’s (Fed) target of 2% a year, which remains “an argument for further rate hikes” for the US central bank, according to Patrick O’Hare of Briefing.com.
Especially since “the stress around the banks has calmed down, so central banks will be able to focus mainly on the fight against inflation”, underlines Charlotte de Montpellier, economist at ING France.
On the bond market, the two-year US rates, the most sensitive to the monetary policy of the central banks and to the short-term outlook, hardly varied.
The yield on US 2-year debt was worth 4.10%, down from 4.12% at Thursday’s close. The equivalent to 10-year maturity fell to 3.51% against 3.55% the day before.
The distribution does not weaken
The titles of large distribution groups were on the rise in New York, despite a slowdown in consumption. Walmart took 1.17%, department stores Macy’s 3.56% and DIY chain Home Depot 1.42%.
In Europe too, Carrefour gained 2.03% in Paris, Sainsbury’s 1.09% in London, despite a drop in consumption in several European countries. Clothing also did well with Adidas (+5.02%) or Zalando (+2.15%) in Frankfurt.
Virgin Orbit underground
The company specializing in the launch of small Virgin Orbit satellites, in difficulty after the failure of a space mission, will lay off 85% of its employees, or 675 people, according to a document published on the website of the American Stock Exchange Constable (SEC ).
Virgin Orbit shares fell nearly 40% in New York after falling 16% on Thursday.
In mid-March, the company had suspended its operations, the time to hold discussions on possible sources of financing and to explore strategic opportunities. She had announced a few days later to resume her activity.
On the side of oil and currencies
Oil prices rose, in line with the trend of the week: the barrel of Brent from the North Sea was worth 79.63 dollars (+0.45%) and the American WTI 75.17 dollars (+1.09%) towards 11 50 a.m. (Eastern time). In five days, they took more than 6% and 8% respectively.
The euro fell 0.28% to $1.0875, and bitcoin rose 0.78% to $28,370.