(Paris) World stock markets were positive on Friday and headed for a weekly increase, the first in four weeks, while the euro rose against the dollar the day after the European Central Bank (ECB) rate hike.
Posted at 10:15 a.m.
The New York Stock Exchange opened higher, driven by the momentum of the two previous sessions, which ended in the green. In early trading, the Dow Jones gained 0.50%, the NASDAQ index took 0.86% and the broader S&P 500 index, 0.66%.
In Europe, Paris took 1.29%, Frankfurt 1.21% and Milan 1.77% around 1:45 p.m. GMT. The London Stock Exchange (+1.22%) was operating normally the day after the death of Queen Elizabeth II, but will be closed on the day of her funeral, which will be a public holiday in the United Kingdom.
Due to this disappearance, the Bank of England announced that its monetary policy meeting, the decision of which was to be published Thursday in the midst of soaring inflation in the United Kingdom, would be postponed by a week.
“The markets have absorbed the 75 basis point hike announced by the ECB,” observes Franklin Pichard, director of Kiplink Finance. But, according to him, “the European meeting on the energy crisis, today, could perhaps change the trend”.
The MSCI global equity index rose over the week, after three successive declines.
In another sign of renewed investor confidence, the dollar, considered a safe haven, was neglected after hitting multi-decade highs against many major currencies this week.
The pound was up 0.66% at $1.1580 around 1:40 p.m. GMT. The yen climbed 1.06% to 142.62 yen to the dollar. The euro rose 0.54% to $1.0052.
This movement comes the day after the meeting of the European Central Bank, which decided to raise its rates by 75 basis points, an increase of unprecedented magnitude since the creation of the institution and which could be followed by other same magnitude by the end of the year, anticipate analysts.
“Inflation rates will leave the ECB no choice but to continue to raise interest rates sharply in October and December, even though the eurozone is already looking at a slowdown by then due to the consequences of the looming energy crisis,” said Martin Moryson, Europe economist at DWS.
The slowdown in inflation in China observed in August, to 2.5%, also helped the trend, as it gave political power more leeway to support demand in the country, which had been weakened for several weeks.
Raw materials in the green
Hopes of recovery in China benefited the commodities sector: in Paris, Eramet climbed 5.30%, Glencore +3.20%, ArcelorMittal +1.37% and Rio Tinto +2.47% around 1:40 p.m. GMT .
The banks reap
Already at the top of the bill Thursday, banking stocks continued to reap the benefits of rising rates: Societe Generale took 3.66%, BNP Paribas 3.47%, Banco Santander 3.71% and Commerzbank 4.50% around 1:40 p.m. GMT.
Oil up, but gas down
European energy ministers were trying Friday, in pain, to agree on emergency measures to stem the surge in gas and electricity prices caused by the Russian offensive in Ukraine.
In sharp decline since its peak at the end of August, the price of European natural gas on the benchmark market, the Dutch TTF, fell by 3.89% to 211.95 euros per megawatt hour around 1:25 p.m. GMT.
Oil prices were up slightly on Friday, with Brent trading above $90, driven by possible Russian hydrocarbon delivery disruptions and the relative decline in the dollar.
Around 1:25 p.m. GMT, a barrel of Brent from the North Sea for delivery in November took 2.62% to 91.47 dollars.
A barrel of US West Texas Intermediate (WTI) for October delivery rose 2.87% to $85.95.