(AOF) – European stock markets progressed, reassured by the Fed’s announcements on Wednesday evening. The CAC 40 index gained 0.22% to 8,179.72 points after setting a new historic high this morning at 8,229.25 points. The EuroStoxx50 gained 1.03% to 5053.36 points. Already well oriented yesterday, the Dow Jones gained 0.78% and the Nasdaq Composite, 0.8% around 5:30 p.m.
The Fed unsurprisingly opted for the status quo on rates. Investors were especially reassured by the maintenance of its projections of three rate cuts this year. They were worried that the Fed was planning only 2 more monetary easing after recent higher-than-expected inflation numbers. The first monetary easing is expected in June.
Announcements from central banks were particularly numerous today. The Bank of England left its key rate unchanged at 5.25%, as expected by the markets, for the fifth consecutive time.
“Both politicians who previously voted in favor of further rate hikes have now voted in favor of maintaining the policy. This vote change will fuel market speculation that the Bank is moving towards cuts rates in the near future,” explains abrdn.
The SNB leads by example
On the other hand, the Swiss National Bank was the first of the major central banks to lower its interest rates. It took economists by surprise by lowering its key rate by 25 basis points to 1.5%. “Easing monetary policy is possible because the fight against inflation over the last five semesters has been effective,” she explained.
Another unexpected decision, the Turkish Central Bank increased its main key rate by 500 basis points to 50%. She justified her decision by her desire to react to the deterioration of the inflation outlook.
Still on the economic front, the private sector was almost stable in March in the euro zone thanks to the services sector, indicated S&P Global. According to a first estimate, the Composite Purchasing Managers’ Index (PMI), which takes into account the manufacturing and services sectors, stood at 49.9 in March compared to 49.2 in February. The consensus was 49.7. A PMI below 50 signals industry contraction and a PMI above 50 signals expansion.
In Paris, Capgemini backed down following the warning from its American competitor Accenture. Worldline, on the other hand, progressed after the announcement of its future president: Wilfried Verstraete.