PARIS (Reuters) – Major European stock markets opened higher on Tuesday, taking advantage of Wall Street’s positive close the day before, but some pared the advance in their gains after the announcement of a stronger-than-expected rate hike in Sweden, on the eve of the decisions of the American Federal Reserve.
In Paris, the CAC 40, which fell below 6,000 points in session on Monday for the first time since mid-July, thus gained 0.23% to 6,075.45 around 07:45 GMT after rising to 6,118.25.
In London, where the markets remained closed on Monday, the FTSE 100 took 0.71% and in Frankfurt, the Dax advanced by 0.3%.
The EuroStoxx 50 index is up by 0.45%, the FTSEurofirst 300 by 0.55% and the Stoxx 600, which has just chained five sessions of decline, is up by 0.21% after a brief spell in the red .
Futures contracts on the main US indices for now point to a continued rebound, but this could remain limited pending the decisions of the Fed’s Federal Open Market Committee (FOMC).
While the above-expected inflation figures in the United States had prompted some investors to price in the possibility of a 100 basis point rate hike, the hypothesis of a 75 point hike is now widely favored, with an estimated probability of 83% according to the real-time barometer FedWatch.
In Sweden, the Riksbank surprised the markets by opting for an increase of one percentage point, bringing its key rate to 1.75%.
Yields on US Treasuries take around two basis points, to 3.5101% for the ten-year and 3.9707% for the two-year.
The rise is more marked in Europe after the announcement of the Riksbank and that of a record and stronger than expected rise in producer prices in Germany: the German two-year hit an 11-year high of 1.684% .
This context continues to benefit European banks, whose Stoxx index gains 1.61%.
Luxury stocks are also benefiting from the prospect of further easing of health restrictions in China: in Paris, Kering (+ 1.69%), Hermès (+ 1.21%) and LVMH (+ 0.84%). ) are among the leaders of the CAC 40.
In the news of the results, the German group Henkel gains 1.35% after raising its forecast for organic growth 2022 while Kingfisher loses 5.62% after its half-year results.
(Writing by Marc Angrand, editing by Kate Entringer)