According to a comment by Antoine Fraysse-Soulier, Head of Market Analysis at eToro, American financial indices regained a positive momentum last week. Data relating to inflation, though slightly increasing, confirmed a trend towards overall stabilization.
The technology stock sector particularly shone, with NVIDIA and Microsoft both recording new highs in the stock market following the publication of the US consumer price index. This index revealed a rise from 3.1% in November to 3.4% in December. Despite this, prices have remained within a range kept between 3 and 3.5% for several months.
Furthermore, investors could be reassured by the slight drop seen in the producer price index. This data supports the anticipation of a rate drop by the American Federal Reserve, with a likelihood estimated at 70% for the month of March according to the CME FedWatch Tool.
In Europe, the positive trend is also noticeable, though more moderate. The CAC 40 saw a rise of 0.6% over the week, propelled by significant gains in the industrial sector, with companies such as Airbus, which saw its price rise by 6.8% to a historical high, and Dassault Systèmes, with an increase of 6.6%.
However, one disrupting element counters this momentum: the deterioration of the geopolitical situation. Targeted strikes led by the United States and the United Kingdom in the Red Sea, although aimed at protecting maritime traffic from drone attacks, have induced a rise in transport prices.
American markets will be closed on Martin Luther King Jr. Day, making way for economic indicators scheduled for the week, including December retail sales and the University of Michigan's consumer confidence index. Expectations are also focused on the results from major banking and multinational corporations set to be revealed in the coming days.
These changes occur in a period of great global economic uncertainty, with a persistent pandemic and an ever-complex geopolitical tension. While markets continue to be sensitive to financial news, they now seem to be in search of a balance between growth and stability.
