The actions leave, the rate subside, the euro shoots up

by Patrick Vignal

PARIS (Reuters) – The main european stock Exchanges leave of the prior Friday at mid-session and Wall Street is advertised in the green at the opening, while yields of government bonds has calmed and the euro soar on hopes of seeing Angela Merkel succeed in forming a coalition government in Germany.

In Paris, the CAC 40 takes to 0.31% 5.505,33 points to 11.25 GMT. In Frankfurt, the Dax gains of 0.24%, as the FTSE in London.

Index pan-european FTSEurofirst 300 rose 0.12 per cent, the EuroStoxx 50 for the euro area of 0.31% and the Stoxx 600 index of 0.16%.

The index futures new york indicate an opening of Wall Street on the rise after the record registered the day before.

The shares are to thrive despite the soaring euro, which has exceeded 1,21 dollar for the first time in three years (+0.8 per cent) after the announcement of a draft coalition agreement between the christian democrats of the CDU-CSU and the social democrats of the SPD, which must now lead to formal negotiations prior to the formation of a government.

The single currency had already taken up 0.72 per cent on Thursday in reaction to the publication of the proceedings of the last Council of governors of the european central Bank (ECB), which has revived the questions about the change in the discourse of the institution and a possible tightening of its monetary policy in the months to come.

These “minutes” in a tone that more offensive than expected also boosted the rise in bond yields, which subside Friday : the ten-year old German, a reference to the euro area, the folds under 0,52% after a peak of around 0.54%, the highest since early August. OAT-French-maturity follows the movement, down almost two basis points to 0.86%.

After the announcements of the ECB, participants in the money market, which expected rather to date on a rise in interest rates in the euro area in 2019, evaluate now at 70% the probability of a recovery before the end of the year.

The CAR ACCELERATES

Side actions, the automotive sector stands out, with an increase of 1.46%, driven by the bond 26.57% of the oem british GKN (LON:GKN), which announced that it had rejected a purchase offer of its competitor, Melrose (+of 4.98%).

Carrefour (PA:CARR) takes to 1.32% in reaction to the announcement of his entrance to the tune of 17% in the capital of the specialist in online sales Nordstrom (PA:GPRS). The latter rushes out of 48,34%.

Other value in a view, Fiat Chrysler Automobiles (NYSE:FCAU) is gaining 3.47 per cent and recorded a new historical high. The group italo-american announced the transfer in 2020 in the United States of the production of pick-up currently being assembled in Mexico.

The downside, Vivendi (PA:VIV) yield of 1.65% after lowering its forecast for adjusted operating profit for 2017 to incorporate the cost of the acceleration of the restructuring of Canal+.

Kering (PA:PRTP) is losing its share of 0.59 percent on the day after the announcement of the distribution to its shareholders 70% of the share capital of its subsidiary Puma (-5,92%). The title was first opened up and scored a record 415 euros.

Has Wall Street, where the three main indexes were beaten Thursday in their records, the session promises to be lively on the front indicators, with the figures of consumer price and retail sales at 1330 GMT, as well as results with the publication, prior to the opening of the accounts of JPMorgan Chase (NYSE:JPM) and Wells Fargo (NYSE:WFC).

On the oil market, the courses are in slight decline after the peaks of more than three years with the day before. Brent comes back around 69 dollars a barrel after reaching 70,05 Thursday and the light crude to u.s. West Texas Intermediate, WTI), folds around 63,40 dollars after being mounted the day before 64,77 dollars, its highest level since the end of 2014.

(with Marc Angrand, edited by Blandine Hénault)