US, European markets rise as investors weigh ratings, earnings

“The slightly higher-than-expected rate in September ended market expectations of anything more than a 25% interest rate cut at the Fed’s November meeting,” said market strategist Patrick Munnelly in Tickmill Group suppliers.

New data on Friday showed that US prices were unchanged in September.

Insurance company Nationwide said the latest inflation report “will not derail the Fed’s plans” to cut interest rates in 2024.

The central bank’s next policy meeting will be in November.

Shares in JPMorgan Chase rose more than five percent after the bank reported profit that fell short of estimates, while executives said the economy was on course to avoid a recession.

Tesla shares fell nearly eight percent as investors appeared dismayed by Elon Musk’s proposal for an electric Robotaxi with no wheels or pedals.

Analysts said the presentation was short on details of financial measures and timelines for making the product a reality.

Wall Street’s three main indexes were in midday deals, with the tech-heavy Nasdaq reversing morning losses.

Stock markets in Paris and Frankfurt closed sharply higher as the European Central Bank is expected to cut its interest rate for the third time next year.

Fawad Razaqzada, market analyst at City Index and Forex.com, said the ECB is expected to cut rates by 25 basis points, half the size of the Fed’s first rate cut in four years last month.

“Preventing the ECB from being more aggressive in its rate cuts is still strong wage growth in the Eurozone, and the fact that the Fed has signaled it will not cut rates again after reduce the values ​​of 50,” Razaqzada. said.

“The conflicts in the Middle East add another level of uncertainty for the Eurozone since the largest countries are its foreign members,” he said.

In London, Britain’s benchmark FTSE 100 index rose as data showed the UK economy picked up in August after two months of stagnation, giving a boost to the new government. weeks before presenting its first budget.

In Asia, the Shanghai stock market closed down less than two percent after a week dominated by worries over a lack of data on the scale of China’s latest stimulus measures.

The focus is now on Saturday when Finance Minister Lan Fo’an will set the monetary policy.

“Stakes are high – many observers believe that the latest stimulus announcements will not amount to much unless they are backed by fiscal support,” said Julian Evans-Pritchard, head of China economics at Capital Economics. , in the letter.

“Three factors will be important in determining the impact of the stimulus: its scale, where it is directed, and how quickly it will be used,” he said.

Elsewhere, oil settled after rising more than three percent on Thursday after Israel’s Defense Minister vowed that his country would hit Iran in retaliation for the missile attack. last week.

– Important figures around 1600 GMT –

New York – Dow: UP by 0.8 percent to 42,796.92 points

New York – S&P 500: UP 0.6 percent to 5,814.33

New York – Nasdaq: UP 0.3 percent to 18,344.57

London – FTSE 100: UP 0.2 percent to 8,253.65 (close)

Paris – CAC 40: UP by 0.5 percent to 7,577.89 (close)

Frankfurt – DAX: UP 0.9 percent to 19,373.83 (close)

Tokyo – Nikkei 225: UP by 0.6 percent to 39,605.80 (closer)

Shanghai – Composite: DOWN 2.6 percent to 3,217.74 (close)

Hong Kong – Hang Seng Index: Closed for holidays

Euro/dollar: UP to $1.0943 from $1.0935 on Thursday

Pound/dollar: DOWN to $1.3069 from $1.3058

Dollar/yen: UP to 149.11 yen from 148.58 yen

Euro / pound: DOWN to 83.72 pence from 83.73 pence

West Texas Intermediate: DOWN 0.7 percent to $75.33 a barrel

Brent North Sea Crude: DOWN 0.6 percent to $78.94 a barrel

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