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Inflation is slowing in the United States, so are global markets



(Paris) Global stock markets experienced little variation on Friday and even an inflation indicator in the United States failed to rouse them from their pre-Christmas weekend torpor.

Continuing Thursday’s trend, Wall Street opened slightly lower. Around 9:50 am (Eastern time), the Dow Jones yielded 0.48%, the S&P 500 0.49% and the tech-heavy NASDAQ fell 0.87%.

The European markets evolve in a restricted amplitude: Paris gave up 0.56%, Frankfurt 0.21%, Milan 0.06%. The London Stock Exchange ended at a level close to balance at +0.05%, after a shortened session.

The trend was much more gloomy in Asia: Tokyo ended down 1.03% on Friday after the publication of inflation at its highest since 1981, and down 4.7% over the week, marked by a first restrictive reversal of the Japanese Central Bank on Tuesday. The Japanese market ended the session at its lowest closing level since October 3.

In China, Hong Kong fell by 0.44% and Shanghai by 0.28%.

Inflation slowed markedly in November in the United States, falling to 5.5% over one year against 6.1% in October, according to the PCE index, a figure in line with analysts’ expectations.

And over one month, the increase is only 0.1%, when it was 0.4% in October.

This good news testifies to the effect of the measures taken by the American Federal Reserve to bring inflation under control.

But the other side of the coin is a slowdown in activity caused by interest rate hikes, which discouraged Americans from consuming too much, just as the end-of-year holiday season began: consumption did not grow than 0.1%, against 0.9% in October, as expected.

Enough to fuel investors’ fears: “with the global economy facing a recession, it is unlikely that there will be much optimism as the new year approaches”, comments Chris Beauchamp, analyst at IG.

On the bond market, sovereign yields in Europe and the United States tightened slightly. The US ten-year debt rate was 3.73%, down from 3.68% at Thursday’s close. And that of Germany rose to 2.39% against 2.35% the day before.

After Friday’s close, stock trading will be suspended for at least three days in the United States and Europe for a long Christmas weekend.

Partnership between Crédit Agricole and Banco BPM

Banco BPM (+0.12%) and Crédit Agricole Assurances (+0.15%) have signed a memorandum of understanding for the establishment of a long-term bancassurance partnership, according to a press release from the French bank published on Friday . The entire banking sector was well oriented in a context of expectation of a hike in key central bank rates in 2023.

On the side of currencies and oil

Oil prices were rising after Russia’s announcement of a potential cut in oil production in response to Western sanctions, thus increasing the tension on supply: the barrel of Brent from the North Sea took 2, 61% to 83.08 dollars while the barrel of American WTI gained 3.03% to 79.86 dollars around 9:45 a.m. (Eastern time).

Russia could cut oil production by 500,000-700,000 barrels a day in early 2023, in response to the introduction by the EU, G7 and Australia of a cap on the price of Russian black gold , Russian Deputy Prime Minister Alexander Novak said on Friday.

The euro was up 0.08% at $1.0604 and was flat against the pound at 1.1358 for the pound around 9:45 a.m. EST.

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