European Stock Markets Retreat After A Lackluster Session
The European stock markets fell on Friday but generally rose over the week as a whole, helped by the accommodating tone of the American Central Bank and the start of vaccine campaigns against Covid-19.
The CAC 40 index lost 0.39%, Frankfurt 0.27% and London 0.33%.
Over the week, however, the flagship Paris index took 0.37% and posted its sixth week increase over the last seven weeks, Frankfurt jumped 3.94% and Milan 1.26%. London still lost 0.27%.
Optimism did not come from the United States on Friday: in the aftermath of records, Wall Street retreated in mid-session, the Dow Jones losing 0.49%, the Nasdaq 0.08% and the S&P 500 0.44 % around 6.30 p.m. (5.30 p.m. GMT).
“The weekend has been dull for European markets, which have swung between positive and negative, as negotiations on the US stimulus package and trade talks between the UK and the EU enter their final phase, ”comments Michael Hewson, chief analyst for CMC Markets UK.
The US stimulus package has been stuck in Congress for months, but it resurfaced on Monday with a joint proposal from a group of elected Republican and Democrats, totaling $ 908 billion, split in two.
Enough to give hope to modest households in a country which embarked on the start of the vaccination campaign, as in Great Britain.
After the green light given to the vaccine developed by Pfizer and BioNTech, Donald Trump also assured Friday morning on Twitter that Moderna’s Covid-19 vaccine had been “overwhelmingly approved”, even before the health authorities confirmed have granted him their emergency authorization.
Also a source of optimism for market players this week, the still very accommodating speech of the US Central Bank after a meeting Wednesday.
The Fed will continue its asset purchases, resumed in March in the face of the advance of the pandemic, until “substantial progress” has been made on the employment and inflation fronts.
Since June, it has been buying $ 120 billion in assets per month, including 80 billion treasury bills and 40 billion MBS (financial products backed by real estate loans).
The European Central Bank announced a week earlier that it was strengthening its arsenal to fight against the consequences of the health crisis on European economies.
On the bond market, the 10-year rate on French and German debt was unchanged and rose more sharply for countries on the periphery of the euro zone, Italy, Spain and Greece.
Saint-Gobain facing the Grenfell investigation
Materials builders Saint-Gobain and Kingspan, whose materials are in the sights of an investigation into the Grenfell Tower fire in London in 2017, have been under pressure.
In Paris, Saint-Gobain fell 5.01% to 36.99 euros at the close, after falling more than 7% during the morning. Listed in Dublin, Kingspan fell 12% Thursday, and recovered only 0.09% to 57.85 euros Friday.
Vivendi enchanted by Tencent
The French media giant Vivendi saw the strongest increase in the CAC 40, advancing 2.35% to 26.60 euros after announcing that the consortium led by Chinese Tencent has decided to exercise its option to acquire 10 Additional% of the capital of its subsidiary Universal Music Group.
European Stock Markets Retreat After A Lackluster Session - /10