(Paris) Stock markets were trading in a narrow range on Friday, about to calmly end a week sparse in news and trading volume, due to a Thanksgiving holiday in the United States.
European stock markets opened stable and continued on this trend around 8 a.m. Paris gleaned 0.09%, Milan 0.02%, Frankfurt yielded slightly 0.05%, while London rose modestly by 0.23%, thanks to oil stocks on its rating.
On the New York Stock Exchange, the futures contracts of the three main indices suggest an opening close to equilibrium as well, before closing at midday (1 p.m.) on Thanksgiving. Thursday, Wall Street remained closed.
In Asia, Tokyo (-0.35%) and Hong Kong (-0.49%) ended slightly lower and Shanghai gained 0.40%.
The week was light in news, with only a few leading activity indicators, which revealed new signs of economic slowdown, and the minutes of the latest meetings of the American and European central banks, among the elements scrutinized by the markets.
Investors continue to hope for a slowdown in central bank rate hikes.
On the bond market, European government rates rose sharply, reversing the decline recorded on Thursday after the publication of the Federal Reserve’s “minutes”. The ten-year German rate was worth 1.93% against 1.84% at the close on Thursday.
“Risk appetite is still very much there,” said ActivTrades analyst Pierre Veyret, “especially after this morning’s German GDP release beat estimates.”
German growth reached 0.4% in the third quarter, despite the energy crisis and inflation weighing on Europe’s largest economy, according to final official data.
“Despite difficult economic conditions, with the coronavirus pandemic, disrupted supply chains, inflation and the war in Ukraine, economic activity is growing”, driven by “private consumption”, commented the Destatis institute. in a press release.
The health situation in China is also being scrutinized by investors: the number of new contaminations has reached a record, several confinements have been decreed, including the city in the center of the country Zhengzhou where six million people live. Violent demonstrations took place in protest of these measures.
“Nevertheless, investors recognize that it is normal for cases to increase as the Chinese economy begins its long and winding road to normalization,” said Stephen Innes, analyst at SPI AM.
“Stock and currency market investors are watching the current lockdowns cautiously, while betting on a more optimistic interpretation that China is reaching the limits of ‘COVID-19 zero’ and authorities’ continued efforts to ease restrictions “.
The British manufacturer of sausage casings Devro soared 60.42% in London, after a takeover offer by the German Saria, specializing in particular in the food industry, for 667 million pounds.
On the side of oil and currencies
Oil prices rose on Friday as debates continue within the coalition that wants to cap the price of Russian production, even if the confinements in China still weigh.
Around 8 a.m., a barrel of Brent from the North Sea for delivery in January gained 1.40% to 86.43 dollars, and that of American WTI at the same maturity 2.12% to 79.59 dollars.
The foreign exchange market did not know much animation. The euro was down 0.22% against the dollar at $1.0388 and the pound was down 0.16% at $1.2093 around 3:15 a.m.
Bitcoin was down 0.25% at $16,500 at the same time.