(New York) Global stock markets rose slightly on Friday, after an unsurprising speech by US Federal Reserve Chairman Jerome Powell, who reaffirmed the institution’s determination to fight inflation.
After a session clearly in the green, European stock markets ended up moderately. Paris gained 0.21%, Milan 0.49%. Frankfurt and London ended almost flat at 0.07%. Over the week, they all show positive results.
As for the indices of Wall Street, they evolved in sawtooth before concluding on a slight increase. The Dow Jones Index advanced 0.73%, the tech-heavy NASDAQ rose 0.94% and the S
At the annual conference of central bankers in Jackson Hole (USA), Jerome Powell reiterated that inflation was “too high”. “We stand ready to raise interest rates further if necessary,” he said, adding that the Fed would proceed “cautiously” in reviewing economic data.
For Christophe Boucher, Chief Investment Officer of ABN AMRO Investment Solutions, the speech was “unsurprising”, “without announcement or particular signal” and “similar to the minutes of the last meeting”.
Regarding the monetary policy decision in September and beyond, “it’s all about the data,” said Ian Shepherdson of Pantheon Macroeconomics.
Also for Maris Ogg of Tower Bridge Advisors, the Fed boss “just repeated what he said before and brokers are starting to take what he says at face value, which is to say it all depends Datas “.
The portfolio manager believed the market was “low conviction, going back and forth, with little volume.”
“I think we’re lacking in trend in this time when there’s little economic news until Labor Day,” a widely observed holiday in the United States that falls on Monday, September 4.
On the bond market, short-term rates, the maturities most sensitive to monetary policy expectations, rose moderately.
The yield on US two-year debt stood at 5.07% from 5.02% on Thursday. Those at ten years were stable at 4.22%.
Since March 2022, the monetary institution has increased its rates eleven times, to take them from a level close to zero to a range between 5.25% and 5.50%, in order to bring down inflation which has reached around 9% in June 2022, according to the PCE index.
In Europe, movements in the bond market were slightly more pronounced, with increases of 0.04 percentage point for the German 10-year rate and 0.07 percentage point for the two-year rate, which reached 2. 53% and 3.02% around 11:50 a.m. EST.
British luxury watch retailer Watches of Switzerland has plunged more than 20% in London, despite assurances that the Swiss takeover of retailer Bucherer by Rolex, announced on Thursday, will lead to “no change” in the procedures for manufacturer distribution.
More than two weeks after the deadly fires that almost razed a city in Hawaii, the county of Maui announced Thursday to file a complaint against the main electricity supplier of the archipelago, Hawaiian Electric, accusing it of not having cut the power. current before the disaster.
The action of the group, already targeted by a complaint from residents, fell 18.63% on the New York Stock Exchange.
Oil prices rose on Friday, with supply tensions eclipsing fears over demand resilience for now, when gas traded at 35 euros per megawatt hour (MWh) after strike threats in Australia.
A barrel of Brent North Sea oil, for October delivery, rose 1.34% to $84.48.
Its US equivalent, a barrel of West Texas Intermediate (WTI), for same-month delivery, gained 0.98% to $79.83.
The euro fell 0.15% to $1.0794.
Bitcoin was stable at $26,019.
