(New York) The Western stock markets were not very lively on Friday, in a sparse market, struggling to digest US macroeconomic data which gave contradictory indications to investors.
European stock markets ended without a clear trend. Paris fell 0.20%, Frankfurt rose 0.19%, Milan 0.27%. Earlier, the London market ended at a level close to balance at +0.05%, after a shortened session for the Christmas weekend.
On Wall Street, the Dow Jones gained 0.53%, the NASDAQ index gained 0.21% and the broader S&P 500 index gained 0.59%.
Inflation slowed markedly in November in the United States, falling to 5.5% over one year against 6.1% in October, according to the PCE index, a figure in line with analysts’ expectations.
And over one month, the increase is only 0.1%, when it was 0.4% in October.
This good news testifies to the effect of the measures taken by the American Federal Reserve to bring inflation under control.
But Wall Street regretted that the so-called core inflation (excluding food and energy), appears at 4.7%, against 4.6% expected by economists.
“The Fed’s favorite inflation indicator (US central bank) remains well above the institution’s target” of 2% per year, “which supports the idea of higher rates, and for longer”, reacted, in a note, Rubeela Farooqi, of High Frequency Economics.
The bond market took note of this state of affairs and the yield on 10-year US government bonds rose to 3.74% against 3.67% the day before.
The PCE survey also showed that consumption had increased by 0.1% over one month in November, but less than expected by economists (+0.2%). “This is indicative of a weakening of consumers,” commented Sam Millette of Commonwealth Financial Network, which could contribute to the slowing economy.
The mood improved a little later with the arrival of the monthly survey from the University of Michigan, according to which the index of consumer confidence rose to 59.7 points in December, against 56.8 points last month.
The index that reflects Americans’ expectations for the coming months recorded an even more marked gain.
After Friday’s close, stock trading will be suspended for at least three days in the United States and Europe for a long Christmas weekend.
Tesla fails to return to racing
Tesla has still not managed to stop its fall (-1.76% to 123.15 dollars), which began several weeks ago, despite statements by Elon Musk, the boss and reference shareholder of the electric vehicle manufacturer, who pledged, Thursday during a forum organized on Twitter, not to sell any Tesla title in 2023 “and probably not the year after either”.
A growing number of analysts are warning that the difficulties are just beginning for Tesla, which is facing a slowdown in demand, while Elon Musk “fell asleep at the wheel”, very busy with the Twitter file, “so that investors need a leader who can maneuver through the storm,” warned Dan Ives of Wedbush Securities.
On the side of currencies and oil
Oil prices jumped on Friday, boosted by Russia’s threat to cut oil production, coupled with disruptions from a winter storm in the United States.
The price of a barrel of Brent from the North Sea for February delivery rose 3.63%, to close at $83.92, and a barrel of American West Texas Intermediate (WTI), also with February maturity, climbed 2.67% to $79.56.
The euro advanced 0.19% to 1.0617 dollars and gained 0.10% against the pound, to 0.8811 pounds for one euro.