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Global Markets | European rates rise sharply after ECB statements

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(Paris) Bond yields in Europe rose sharply after statements by European Central Bank officials questioning the idea of ​​a pivot towards looser monetary policies, while calm continued to reign over equities.

Interest rates in southern European countries, such as Spain, Italy and Portugal, took nearly 20 basis points. Around 11:45 a.m., the yield on 10-year debt in Italy erased all of its decline for the week, rising to 3.84%.

The trend was the same, although less marked for Germany or France, while US government bond rates rose only moderately.

The chief economist of the European Central Bank Philip Lane estimated that wage growth will continue to fuel inflation in the euro zone, suggesting for investors a continuation of the institution’s rate hikes.

He supports the remarks revealed the day before by the influential member of the executive board of the ECB Isabel Schnabel, for whom a relaxation of the policy of the ECB is not on the agenda.

“It has shut down hopes of a pivot and put inflation concerns back in the spotlight,” ahead of November’s eurozone figures next week, according to Patrice Gautry, chief economist at Union Bancaire Privée. . Even “more moderate” figures would not allow a change in the institution’s position, according to him.

“As the United States descends from the mountain, we are trampling on the peak of inflation in Europe,” he notes.

In the equity market, the mood was much calmer, like the whole of this week, marked by low volumes due to the Thanksgiving holiday in the United States.

On Friday, US markets will close at 1 p.m. Around 11:50 a.m., the Dow Jones advanced 0.51%, the S&P500 0.07% while the NASDAQ retreated 0.40%.

In Europe, London ended up 0.27%, Paris 0.08%, Frankfurt 0.01% and Milan lost 0.05%. Over the week, these indices are all progressing.

Volleyball for Manchester

Manchester United shares continued to climb on Wall Street, 14% around 11:45 a.m., an increase of nearly 65% ​​over the week.

On Tuesday evening, the American owners of the English football club announced that they were considering selling the club. On Friday, Saudi Arabia said it would “undoubtedly” support offers from its private sector to buy historic English clubs Manchester United or Liverpool.

Bingo for Devro casings

The British manufacturer of sausage casings Devro soared by more than 60% in London, after a takeover bid by the German Saria, which specializes in particular in the food industry, for 667 million pounds.

Credit Suisse at rock bottom

Credit Suisse shares hit a new all-time low in Zurich after details of its capital raise were released amid concerns over capital outflows by clients. The stock fell more than 6.5%, with a low of 3.32 Swiss francs.

On the side of oil and currencies

Oil prices fell slightly, torn apart by debates on the price cap for Russian production, and confinements in China.

Around 11:45 a.m., a barrel of Brent from the North Sea for delivery in January fell 0.31% to 84.98 dollars, and that of American WTI at the same maturity 0.18% to 77.78 dollars.

On the foreign exchange market, the euro returned close to stability (-0.03%) to 1.0407 dollars and the pound fell 0.13% to 1.2098 dollars.

Bitcoin was down 0.44% at $16,470 at the same time.



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