Southern European bond yields rose nearly 20 basis points after European Central Bank officials questioned the idea of a shift to looser monetary policies.
Bond yields in Europe rose sharply after statements by European Central Bank officials that questioned the idea of shifting to more flexible monetary policies, while calm continued to control stocks.
Interest rates in southern European countries, such as Spain, Italy and Portugal, were taken down by nearly 20 basis points. Around 4:45pm GMT, the yield on 10-year debt in Italy erased all of its decline for the week, rising to 3.84%.
The trend was the same, although less pronounced for Germany or France, while US government bond prices rose only moderately.
ECB chief economist Philip Lane estimated that wage growth will continue to fuel inflation in the eurozone, indicating continued interest rate hikes in the institution.
He endorses remarks revealed the day before by influential member of the ECB’s executive board, Isabel Schnabel, for which ECB policy easing was not on the agenda.
“It has killed hopes of a pivot and brought inflation fears back into the spotlight,” said Patrice Guthrie, chief economist at Union Banker-Privé, ahead of next week’s November eurozone figures. Even the most “moderate” figures would not allow the establishment’s stance to change, he said.
He notes that “while the United States descends the mountain, we are trampling the peak of inflation in Europe.”
In the stock market, the atmosphere was much calmer, like this whole week, with trading volumes marked by weakness due to the Thanksgiving holiday on Thursday in the United States.
On Friday, the US markets will close at 6:00 PM GMT. At around 4:50 PM GMT, the Dow Jones advanced 0.51%, the S&P500 advanced 0.07% while the Nasdaq was down 0.40%.
In Europe, London shares ended 0.27%, Paris 0.08%, Frankfurt 0.01% and Milan 0.05%. Over the course of the week, all of these indicators are advancing. In Zurich, the SMI rose 0.09%.
Manchester Volleyball
Shares of Manchester United continued to climb on Wall Street, up 14% around 4:45pm GMT, up nearly 65% for the week.
And the owners of the English football club announced, on Tuesday evening, that they are considering selling the club. Saudi Arabia said on Friday that it would “undoubtedly” support offers from its private sector to buy two historic English clubs such as Manchester United or Liverpool.
Bingo for Devro covers
The British manufacturer of sausage casings Devro jumped by more than 60% in London, after an acquisition offer from the German company Saria, which specializes mainly in the food industry, for 667 million pounds sterling.
Credit Suisse is in the gutter
Credit Suisse shares hit a new all-time low in Zurich after details of a capital raise were announced amid concerns about capital outflows by clients. Title fell more than 6.5%, with a decrease of CHF 3.32.
On the side of oil and currencies
Oil prices have fallen slightly, marred by discussions about Russian production price caps, and restrictions in China.
At around 4:45 pm GMT, the barrel of Brent North Sea for delivery in January fell 0.31% to $84.98, and the US West Texas Intermediate crude at the same maturity fell 0.18% to $77.78.
In the foreign exchange market, the euro returned close to stabilizing (-0.03%) to $1.0407, and the pound fell by 0.13% to $1.2098.
Bitcoin fell 0.44% to $16,470 at the same time.