Closing without trend in Europe, indicators in support of the euro


by Marc Angrand

PARIS (Reuters) – The european stock Exchanges have ended in a scattered Thursday in the absence of us markets closed for Thanksgiving, but the day was more favourable to the shares of the euro area, boosted by economic indicators better than expected.

In Paris, the CAC 40 finished up 0.50% (26,78 points) 5.379,54 points, and the index EuroStoxx 50 was taken to 0.26%. But in Frankfurt, the Dax, still penalized by the political uncertainties after the failure of talks aimed at forming a coalition government, has finished almost unchanged.

The FTSE 100 london (-0,02%), the FTSEurofirst 300 (-0,06%) and the Stoxx 600 (+0,02%) have also struggled.

The closure of Wall Street forces, the volumes of trade were limited, especially in London, with less than two-thirds of the average level of the past 90 sessions for the Stoxx 600 and just over half for the ACC.

The us markets will will re-open on Friday for half a session.

Investors in the euro zone have particularly welcomed the figures exceed the estimates of the most optimistic indices PMI of the euro zone, the new rise of the index Insee business climate in France and the confirmation of the 0.8% growth of the German economy in the third quarter.

“The euro area has experienced a sharp acceleration of the rhythms of activity in all countries and all sectors. The political risk has become a background noise, the volume of which is low, except for specific exceptions (Catalonia, the Germany of today),” said Bruno Cavalier, chief economist for Oddo BHF.

“The firmness of all the indicators of confidence, both among households and businesses, signals that growth will remain strong (above 2.5%) in the short term.”

These positive indicators have contributed to the rise of the euro (+0,21%), which displays three consecutive sessions of increases, and returns to near 1,1850 dollar.

Highly anticipated, the minutes of the last monetary policy meeting of the european central Bank (ECB) has briefly boosted the single currency, the document would provide no salient component on the evolution of the debates within the Council of governors.

The greenback has continued the decline that started on Wednesday after the publication of the “minutes” of the federal Reserve, which has suffered its largest decline on a session since June.


European equities have not suffered the steep decline of the chinese Exchanges: the index CSI 300 of the main cap and the SSE Composite Shanghai have yielded, respectively, 2.93 per cent and 2.26 per cent, their biggest decline since a year and a half, due to fears of a tightening of credit conditions could hamper investment flows.

Largest increase in the Stoxx 600, EDF was awarded to 5.6%, its best performance on a session since mid-may.

The French ministry of Economy is considering various ways to change the structure of the group, among which that of a spin-off of its nuclear activities, but it has not stopped project specific at this stage, a-t-on learned from three sources aware of the folder.

Also surrounded, Telecom Italia (MI:TLIT) has taken a 4.48%, buoyed by speculation about a possible spin-off of its fixed telephone network to the outcome of ongoing discussions with the Italian government.

The title Altice (AS:TCAA), for its part, bounced back from 3.85% to 7,85 euros thanks to the recommendation of the purchase of ABN Amro, which set a goal of 16 euros.

The downside, Centrica has fallen from 15,49% after it lowered its forecasts of financial results.

Another fall spectacular, one of the “biotech” French Innate Pharma (AP:IPH), in which the action has lost 40,07% on the day after the disappointing results of a clinical trial of its anti-cancer lirilumab. The capitalization of the company is thus reduced to just over 300 million euros.

On the oil market, the low volumes did not prevent the light crude to u.s. West Texas Intermediate, WTI) to achieve in the session, its highest level since two years 58,44 usd per barrel, taking advantage of the closure of a major pipeline canada and the latest numbers of american stocks one week of the Opec meeting in Vienna.

(Edited by Wilfrid Exbrayat)

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