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European stock markets optimistic despite uncertainties linked to Ukraine

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(New York) Western stock markets showed optimism on Friday and throughout the week, driven by bargain purchases and despite geopolitical uncertainties linked to Ukraine.

European and US markets wiped out all of the losses suffered since the start of the conflict on February 24 and achieved their best weekly score since November 2020.

After an unstable session, the main European indices ended up slightly: Paris by 0.12% and Frankfurt by 0.17%, Milan by 0.41% and London by 0.26%.

The CAC 40 gained 5.75% over the week as a whole, like the German Dax, which rose by nearly 6%.

“To the surprise of many, the Dax has gained nearly 1,000 points over the past five days,” noted Konstantin Oldenburger, analyst at CMC Markets, who nevertheless believes that, “in the current context of rising interest rates interest, runaway inflation and geopolitical turmoil, there isn’t much positive for growth stocks either.”

In tune, the Dow Jones posted its fifth consecutive session of gains, for the first time since late December, gaining 0.80%, while the NASDAQ gained 2.05%, and the broader S&P 500 index, 1, 17%.

For Tom Cahill, of Ventura Wealth Management, after a long chaotic period, investors “said to themselves that there was an opportunity there that they did not want to miss. And they started to increase their exposure to risk. »

As we approach the end of the quarter, an important period for funds and asset managers, “there will be a rebalancing of portfolios from bonds to equities”, anticipates the analyst.

The recent sharp rise in bond yields reflects a selling trend in this market, where prices move in the opposite direction to rates.

However, even if the New York market has just had “unquestionably a very good week”, Wall Street has not finished with volatility, warns Patrick O’Hare of Briefing.com.

Inflation shows no real sign of slowing down, US growth is decelerating, and the war in Ukraine does not seem likely to find a short-term solution.

Moscow announced on Friday a “rapprochement” of positions between Ukraine and Russia to allow a diplomatic solution to the conflict. But the adviser to the Ukrainian presidency Mykhaïlo Podoliak tempered this assertion, considering that Russia had not changed its initial demands.

“It will remain in the background”, according to Tom Cahill, “and we will have to do day by day, hoping that it will not get worse. »

The technological stocks sought

The technology sector was particularly sought after by investors, in the wake of the NASDAQ in New York. In Paris, STMicroelectronics (+2.84%), Dassault Systemes (+2.65%) and Capgemini (+2.25%) were among the most demanded stocks, as was Infineon (+1.54%) in Frankfurt .

On the side of oil and currencies

Oil prices ended higher on Friday and consolidated above $100 a barrel, in a market still concerned about supply tensions, especially Russian exports which remain below their pre-war level in Ukraine .

A barrel of Brent North Sea crude for May delivery closed up 1.20% at $107.93.

In New York, the barrel of West Texas Intermediate (WTI) with maturity in April, advanced by 1.67%, to end at 104.70 dollars.

On the London metals market, nickel fell 12% to nearly $37,000 a tonne in the morning, but its price is now at a standstill, as the decline has reached the maximum set by the regulator.

On the currency market, the euro fell 0.36% against the greenback, to 1.1050 dollars.

Bitcoin was up 2.78% at $41,880.



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