European markets benefited from spillover sentiment from US stocks this week, as well as upbeat economic data.
European stocks ended the week on an upbeat note, sparking optimism from the S&P 500’s record performance this week, which hit an all-time high of $4,894.17 (€4,500.34) on Friday afternoon. A surprisingly strong advance estimate for the US Q4 2023 GDP report contributed significantly to the positive sentiment.
The CAC 40 rose 2.52% this week to €7,637.8, and the Stoxx 600 rose 2.71% to €484.1. The FTSE 100 index closed 2.46% higher at £7,640.9 (€8,956.2).
Gold fell 0.35% to $2,021.3 per ounce, while Brent crude prices rose 4.93% to $82.3 per barrel, with crude oil prices jumping 5.26% to $77.0 per barrel.
CAC 40 top weekly gainers
LVMH stock rose 16.56% this week, as the company reported better-than-expected 2023 sales on Thursday and also increased its annual dividend.
Pernod Ricard shares jumped 10.48% after the company’s recent launch of honey-flavored vodka, Absolute Honey.
Kering stock advanced 9.96% over the week after the company recently acquired a property on Fifth Avenue in New York City worth about €885 million.
Publicis Groupe shares rose 6.93%, after the company announced that it invested about $326 million in artificial intelligence and shared its revenues for the year 2023.
Railway manufacturer Alstom’s stock rose 6.25% last week, after the company chose to supply German transport company DB Reggio with 18 modern Coradia Max trains.
CAC 40 biggest losers weekly
French utility company Engie’s shares fell 4.84% during the week, after the company’s Romanian arm purchased an 80-megawatt wind farm in Chernojeni.
Pharmaceutical giant Sanofi’s stock fell 1.69% during the week. The company’s new drug Dupixent, developed with Regeneron, was recently approved to treat patients aged 1 to 11 years who weigh at least 15 kg for eosinophilic esophagitis.
Car company Stellantis fell 0.72%, after the company warned that Italy’s tougher approach to incentives is now affecting production.
Shares of industrial gas company Air Liquide fell by 0.65% over the course of the week. The company recently announced that it will continue to actively participate in China-France relations.
Danone shares fell 0.42% this week, after the company recently revealed that it would close a Spanish yogurt factory in Barres del Valles to increase competitiveness and efficiency.
Economic data this week
The European Central Bank (ECB) announced its January interest rate decision this week, with the bank opting to keep interest rates steady for a bit longer and deciding to take a more data-driven approach. As such, he will likely wait for more convincing data as evidence that eurozone inflation is truly under control, before cutting interest rates.
The advance estimate for the US quarterly GDP report for the fourth quarter of 2023 came in on Thursday at 3.3%. This was lower than the third quarter of 2023’s 4.9%, but still well above analyst estimates of 2%. The slowdown compared to the previous quarter was largely due to lower consumer spending.
The GfK Consumer Confidence Index for February was released on Friday, falling to -29.7, down from -25.4 the previous month. This was an 11-month low and was also well below market estimates of -24.5.
French consumer confidence numbers for January were more optimistic, recording 91, up from 89 in December, as well as analysts’ expectations of 90.
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