(Paris) World stock markets are up on Friday, preparing to end the week, marked by speeches deemed accommodating by central banks, on a positive note thanks to the slowdown in US inflation.
In Europe, Frankfurt finished on a new closing high of 16,469.75 points, gaining 0.39%, after hitting a new all-time high in the session.
Paris ended up 0.15% and London, which returned in session to a level not seen for two months, closed in equilibrium (0.02%). Over the week, all European markets posted gains.
On Wall Street around 12 p.m. EST, the Dow Jones was up 0.44%, the S
“The week was dense with central banks and inflation indicators”, and on this side, “all is well, market expectations having been confirmed”, commented Xavier Girard, financial investment expert at Milleis Banque.
The American PCE index, the inflation indicator favored by the American central bank (Fed), slowed sharply in June, to 3.0% over one year against 3.8% the previous month. The Fed’s target rate is 2.0%.
Excluding volatile energy and food prices, so-called core inflation also slowed year on year, to 4.1% from 4.6%.
This downward price trajectory “further reinforces the idea that central bank rate hikes are behind us, in the United States as in Europe”, continued Xavier Girard.
During the week, the US and European central banks both indicated that they would not rule out ending their cycle of rate hikes that began in 2022, in a scenario where inflation figures would remain in line with expectations for the coming months.
As the corporate results season is coming to an end, “this has helped to ease the atmosphere in the markets and make room for purchases despite the summer period,” added Xavier Girard.
Airline group IAG, parent of British Airways and Iberia, returned to profit in the first half on strong travel demand as the industry recovers from the COVID-19 pandemic. Listed in London, the group closed up 6.58%.
German chemicals giant BASF (3.14%) posted net profit down more than three-quarters in the second quarter year-on-year, but demand for chemicals could pick up over the rest of the year, though timidly.
In Paris, Arkema (5.76%) recorded a 61% drop in net profit in the first half, but maintained its forecast. Air Liquide gained 1.07%.
In Brussels, Umicore gained 0.77%.
The Swedish-British pharmaceutical giant AstraZeneca announced a net profit group share almost fivefold in the first half, to 3.6 billion dollars. Its stock jumped 3.35% in London.
US oil and gas giant ExxonMobil (-1.93% in New York around 12 p.m. EST) reported a 56% drop in second-quarter net profit.
The American oil company Chevron dropped 1.10%, also because of a sharp drop in its net profit for the same period.
After hitting a three-month high the previous day, prices for the two global crude benchmarks were flat around 11:55 a.m. EST.
A barrel of Brent from the North Sea, for September delivery, was worth $84.25 (0.01%). Its US equivalent, a barrel of West Texas Intermediate (WTI), for same month delivery, stood at $80.08 (-0.01%).
The euro rose 0.52% to $1.1036, after falling sharply on Thursday.
Bitcoin was up 0.80% at $29,378.
