(Paris) European stocks closed higher on Thursday and Wall Street is in the green, investors welcoming data on inflation in the United States, which rose less than analysts expected.
The London Stock Exchange ended up 0.41% and that of Frankfurt 0.91%. Paris advanced by 1.52%, notably driven by companies in the luxury sector, heavyweights of the CAC 40, after the lifting of restrictions in China giving hope for the return in numbers of Chinese tourists abroad.
On Wall Street around 12:05 a.m. EST, the Dow Jones was up 0.47%, the S
“What is driving the stock market rebound today is above all US inflation (CPI)” which reflects “an economy that is decelerating and remains resilient”, comments Sophie Chauvellier, manager of Dorval AM.
According to the CPI index released Thursday by the Labor Department, inflation in the United States in July stood at 3.2% year on year, against 3.0% last month, driven by house prices .
Analysts, however, expected a somewhat stronger rebound, to 3.3%, according to Market Watch consensus.
In addition, core inflation, which does not take energy and food prices into account, continued to slow year on year, to 4.7% from 4.8% the previous month.
This data is considered by economists as a more relevant signal on the direction that inflation is taking.
These figures show “that we are in a logic of deceleration [in accordance with] the objectives of the American central bank (Fed)”, continues Sophie Chauvellier.
So, “if there were to be a final Fed rate hike, it wouldn’t be until the fall,” she adds.
“The published figures do not currently justify an increase” in the rates of the American monetary policy institution, whose next meeting will be held in September.
Another indicator released Thursday in the United States also contributed to the stock market rebound: weekly jobless claims rose to their highest level in a month at 248,000 (21,000), against 230,000 expected.
A welcome increase since a “gradual rise in the unemployment rate implies less tension on the labor market and on wages”, the Fed thus having “less need to tighten financial conditions”, details Sophie Chauvellier.
The American group Tapestry (Coach, Kate Spade, Stuart Weitzman) and the company Capri, parent company of Michael Kors, Versace and Jimmy Choo, have decided to unite to create a global luxury giant.
According to Neil Saunders of GlobalData, the new entity should become the fourth largest luxury group in the world with a market share of around 5.1%, behind the French LVMH (3.43%), Kering (2. 21%) and Chanel.
Around 12:00 p.m. EST, Tapestry stock fell 13.62% in New York and Capri stock jumped 56.27%.
German industrial giant Siemens fell more than 3% in Frankfurt after reporting results below analysts’ forecasts.
European natural gas prices were catching their breath after surging the day before, pushed by threats of strikes in Australia at major gas installations.
Around 11:50 a.m. (Eastern time), the Dutch TTF futures contract, considered the European benchmark, fell 6.55% to 37.22 euros.
As for oil, the two global benchmarks were down.
A barrel of Brent from the North Sea, for delivery in October, lost 0.58% to 87.04 dollars, and its American equivalent, a barrel of West Texas Intermediate (WTI), for delivery in September, fell by 0. 91% at $83.63.
On the foreign exchange market, the dollar lost 0.38% to 1.1017 dollars for one euro.