In a notable financial surge, European stock markets, particularly Paris, achieved unprecedented highs on Friday. This upswing was largely propelled by the remarkable annual profits of French luxury group LVMH. Simultaneously, Wall Street broke its own records as US inflation showed signs of easing.
Amid this positive momentum, Hong Kong stocks faced a decline, marked by uncertainty surrounding potential Chinese stimulus measures. Furthermore, oil prices experienced a dip, following a week of robust performance.
Analysts attributed the rise in European indices to the strength of commodity and banking stocks. Notably, the Paris CAC 40 closed above 7,600 points for the first time, primarily due to a substantial 12.8 percent surge in LVMH shares.
In the United States, the Federal Reserve’s preferred inflation gauge remained stable, indicating robust consumer spending. The recently revealed US economic growth figures for the last quarter, exceeding expectations at 3.3 percent, provided reassurance to investors, dispelling concerns of an impending recession.
Contrary to earlier predictions, the likelihood of a US interest rate cut in March now appears slim. While some analysts argue that the Federal Reserve has accomplished its objectives, others suggest there’s still room for potential rate adjustments to address risks in the job market.
This collective financial landscape reflects a balance of strong economic growth and controlled inflation, positioning markets for stability in the near term.
