Market: Europe ends with weak variations, best week since late March

(Reuters) – European shares ended flat on Friday but posted their best week since late March as relief after U.S. inflation data fueled speculation that U.S. monetary policy tightening may soon end.

In Paris, the CAC 40 rose 0.06% to 7,374.54 points. In Frankfurt, the Dax fell 0.22% and in London the FTSE 100 lost 0.08%.

The EuroStoxx 50 index rose 0.24%, the FTSEurofirst 300 lost 0.03%. The Stoxx 600 fell 0.10%, but the index rose 3.05% this week, its best performance since late March.

Over the course of the week, the CAC 40 rose 4.12%.

However, Michele Morganti, senior equity strategist at Generali Investments in Rome, urged caution.

He believes that price-earnings ratios are “exuberant” relative to real interest rates and economic growth, particularly in the United States.

“We remain cautious on equities in the near term due to persistent core inflation, tighter credit conditions and macroeconomic indicators pointing south,” said Michele Morganti.


After jumping more than 7% during the day, Vallourec, which announced an increase in its second-quarter EBITDA target and a forecast for a reduction in its net debt in the second half, ended with a gain of 1.85%.


At the time of the close in Europe, Wall Street was trending in the green following strong results from JPMorgan and Wells Fargo. The Dow Jones rose 0.31%, the Standard & Poor’s 500 0.16% and the Nasdaq Composite 0.38%.


The day’s only major indicator, the morale of US households has improved significantly since the beginning of July compared to June, to the highest level in almost two years with the decline in inflation and the solidity of employment, according to the first results of the monthly survey from the University of Michigan.


The dollar is regaining color after hitting a low since April 2022 the day before. It rises by 0.10% against a basket of reference currencies. During the week, it fell 2.36 per cent. The euro is seen at $1.1238, up 0.98%.


Treasury yields rose late Friday after the U.S. consumer survey showed they had raised their inflation forecast slightly.

The ten-year government yield rose 3.8 basis points to 3.7969 and its German equivalent ended at 2.4750 (+1 basis point).


In the oil market, Brent fell 1.46% to $80.17 a barrel, and US West Texas Intermediate (WTI) lost 1.52% to $75.72.

(Written by Kate Entringer)

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