Although the shares of the computer equipment manufacturer appreciated 4.4% on the day, other values in the sector, such as Soitec SA and BE Semiconductor Industries, gained more than 3% each.
Basic resources stocks also rose more than 2%, boosted by strength in copper prices. The broader index of luxury stocks was also up 2%, following a sell-off earlier in the week in the wake of LVMH’s weak third-quarter sales.
LVMH and other luxury giants such as Kering, which owns Gucci, and Hermès added between 2% and 3%, and the main French CAC 40 index outperformed regional bourses. The Swiss Richemont also grew by 5%.
Brunello Cucinelli increased by 3.6% after the good results of the Italian luxury group in the first nine months of the year.
Regarding monetary policy, interest at 3.25% on Thursday and, although its president, Christine Lagarde, gave no clues about future measures, some sources told Reuters that a fourth cut is likely in December, to unless key data changes by then.
“If economic concerns intensify a little more during the rest of the year and if the narrative goes more in this direction, the ECB will have to cut more because the economic outlook is at stake and that could deter equities,” said Diana Iovanel, economist at Capital Economics. Among the most bullish stocks, Swedish truck maker Volvo rose 2%, after falling in early trading due to a larger-than-expected drop in adjusted quarterly operating results and a virtually unchanged demand forecast for next year.
British American Tobacco said it is close to settling its tobacco litigation in Canada, sending shares down 2%. The Swiss Avolta and Barry Callebaut gained between 2% and 3% after the rating upgrades of Deutsche Bank and Morgan Stanley, respectively.
Elisa fell 6% after the Finnish telecommunications company’s third-quarter revenue missed expectations, while Swedish medical equipment maker Getinge fell 5% after failing to make a profit in the third quarter. For its part, Europe’s largest debt collector, Intrum, announced that it will file for bankruptcy protection in the United States. Its shares fell 2.2%.
Bets on Donald Trump boost the dollar
He dollar was headed for its third straight weekly hike on Friday, helped by a cautious European central bank and strong U.S. data that are raising expectations about how quickly interest rates can fall, especially if Republican Donald Trump returns to office. white house
A raft of Chinese economic data, including third-quarter growth figures, was met with a muted response from markets, although subsequent comments from the country’s central bank providing more details on Beijing’s stimulus measures helped lift assets. Chinese in general.
Data released Thursday showed U.S. consumer spending beat expectations last month, adding to the belief among investors that U.S. rates may not have to fall as quickly as many thought just a couple of years ago. of weeks.
On Thursday, the European Central Bank cut euro zone rates by a quarter point, in line with expectations, in a nod to deteriorating economic growth across the region.
The euro, which has been at its lowest since early August, is heading for its biggest three-week drop against the dollar since 2022, down close to 3%, as traders discount two consecutive rate cuts in the coming months. ECB meetings. The euro rose 0.1% to $1.08378, after falling in 14 of the last 16 sessions.
Adding to the dollar’s shine were growing bets on Trump winning the November presidential election, as his proposed tariff and tax policies are seen as likely to keep rates high in the United States.
“I think there is a chance that the euro will continue to fall. The ECB has cut rates and given no hint of cuts in December, but given where inflation is and the economic outlook is deteriorating, they are focusing on trying to shore up the economy a little more,” said Fiona Cincotta of City Index. “I see potential for a future decline of the euro towards the $1.08 level.”
The dollar was down 0.2% against the yen, at 149.925 units, after exceeding the level of 150 this week for the first time since early August. Sterling rose 0.2% to $1.3037 after data showed British retail sales grew more than expected in September.
Gold surpassed the $2,700 barrier for the first time on Friday, prolonging a rise driven by expectations of further easing of monetary policy and demand for refuge amid uncertainty over the presidential elections in the United States and conflicts in the East. Half.
gold record
He gold Spot was up 0.7% at $2,711.75 per ounce at 0933 GMT, having hit an all-time high of $2,714.00 earlier in the session. So far this week, gold is up more than 2%. U.S. gold futures gained 0.7% to $2,726.90.
The Lebanese militant group Hezbollah said on Friday it was moving into a new phase of escalation in its war against Israel, while Israeli Prime Minister Benjamin Netanyahu vowed late Thursday to press ahead with wars in Lebanon and Gaza.
Rising geopolitical tensions are leading investors to seek safe-haven assets such as gold, driven by risk aversion and concerns about instability in global markets.
“It is not surprising that gold has surpassed new highs and the psychological level of $2,700 in Asian time, since it seems that speculative interest is coming from that region,” said independent analyst Ross Norman.
“Gold is benefiting from some very high-conviction trades and is not only ignoring key factors like declining inflation and Treasury yields, but is barely pausing for consolidation or profit-taking.” “.
Gold has risen more than 31% this year, driven by expectations of further monetary easing by major central banks, including the US Federal Reserve, and geopolitical tensions.
In physical markets, Indian traders have been forced to offer discounts this week as record prices have dampened demand on the eve of a major festival.
“From a technical point of view, if gold continues to rise, it could find resistance around $2,750 an ounce, which is the upper limit of an uptrend channel that we have been seeing since late July,” said Frank Watson, Kinesis Money market analyst.
Among other precious metals, spot silver rose 1.2% to $32.07, heading for a weekly gain. Platinum gained 1.6% to $1,007.54 and palladium added 2.1% to $1,063.50.
Source: Ambito
