US stocks overcome inflation fears but Europe succumbs

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(REUTERS / File Photo)

NEW YORK – After a lackluster start to the session, the Dow, Nasdaq and S&P 500 all set new highs at the close, although the gains were not particularly large.

Traders topped US Department of Commerce data showing September inflation up 4.4% from the same month in 2020, its biggest jump since January 1991, along with results from Apple and Amazon who have been rocked by supply chain issues.

“The market has been everywhere,” said Peter Cardillo of Spartan Capital Securities, noting that the government also reported an unexpected drop in income and a less surprising increase in spending last month.

Despite Apple and Amazon’s woes, Cardillo pointed to the better results of companies like Ford, ExxonMobil and Chevron, saying the indices were “supported by strong earnings, and that is why the broader market is doing so. is finally straightened out “.

Earlier in the day, Asian stock markets ended mixed, while European indexes mostly retreated after data showed inflation in the eurozone was rising.

The dollar appreciated against its main rivals, gaining one percent against the euro as speculation rises that the Federal Reserve will announce next week its intention to withdraw its monthly bond purchases.

Inflation everywhere

The eurozone economy has so far maintained its steady resumption of Covid-19 restrictions, increasing 2.2% in the third quarter of the year, according to data released on Friday.

But year-on-year inflation hit 4.1% in October, more than double the European Central Bank’s (ECB) target and equaling the record rate last seen in July 2008, as prices energy jumped by nearly a quarter, the agency said.

CMC Markets analyst Michael Hewson called the annual increase “another reminder of the risks of the ECB’s current ultra-flexible monetary policy” and said it “adds to the pressure on a seemingly central bank. be in denial as the markets increasingly assess inflation risks.

A growing number of countries have raised interest rates to tackle price spikes, but the ECB has said medium-term inflation prospects remain below its 2% target and a rate hike will not was not an option.

The Federal Reserve is also not expected to raise its rate to zero until next year, although the Bank of England may raise its key rate to a record 0.1% next week.

In Asia, the Hong Kong and Shanghai stock markets were bolstered by a report that real estate group China Evergrande made an overdue interest payment by Friday’s deadline, giving it a bit more breathing space as it ‘He is struggling to deal with a debt crisis that much fear could spill over into the economy at large.

Key figures around 2030 GMT

New York – Dow: 0.3% at 35,819.56 (close)

New York – S&P 500: UP 0.2% to 4,605.38 (close)

New York – Nasdaq: UP 0.3% to 15,498.38 (close)

EURO STOXX 50: + 0.4% at 4,250.56 (closing)

London – FTSE 100: DOWN 0.2% to 7,237.57 (close)

Frankfurt – DAX: DROP less than 0.1% to 15,688.77 (close)

Paris – CAC 40: + 0.4% to 6,830.34 (closing)

Tokyo – Nikkei 225: UP 0.3% to 28,892.69 (close)

Hong Kong – Hang Seng Index: DOWN 0.7% to 25,377.24 (closing)

Shanghai – Composite: UP 0.8% to 3,547.34 (close)

Euro / dollar: DOWN to $ 1.1556 vs. $ 1.1682 at GMT 2015

Pound / dollar: DOWN to $ 1.3685 from $ 1.3792

Euro / pound: DROP to 84.44 pence against 84.69 pence

Dollar / yen: up to 114.03 from 113.57 yen

North Sea Brent: Up 0.1% to $ 84.38 per barrel

West Texas Intermediate: UP 0.7% to $ 83.36 per barrel

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France Media Agency

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