PARIS, Nov 2 (Reuters) – Major European stock markets rose in early trading on Wednesday as hopes of an easing of health restrictions in China continued to support the trend pending further details from the U.S. Federal Reserve on its intentions. for the months to come.
In Paris, the CAC 40 gained 0.63% to 6,368.23 points around 07:35 GMT, confirming its return to its levels of mid-September. In London, the FTSE 100 takes 0.12% and in Frankfurt, the Dax advances by 0.28%. The EuroStoxx 50 index is up 0.51%, the FTSEurofirst 300 0.44% and the Stoxx 600 0.42%. In China, the SSE index of the Shanghai Stock Exchange gained 1.15% and the Hang Seng in Hong Kong posted a gain of 2.41% at the close, still driven by speculation on a possible gradual easing of measures. intended to curb the COVID-19 epidemic. This hope continues to favor luxury stocks, which are very sensitive to news from Asia: LVMH gains 1.21%, Kering 1.24% and Hermès 1.04%.
But investors’ No. 1 concern remains US monetary policy, a few hours before the announcement of the Fed’s decision: while the markets have practically priced in a 75 basis point (bp) increase in the rate target for “fed funds”, they wonder about a possible slowdown in the rise in the coming months, which would favor risky assets. “The Fed could open the door to reducing the speed of the tightening. Even if it should not be explicit, we still expect an upcoming hike of 50 bps followed by a more moderate 25 bps”, explains Sebastian Paris- Horvitz, research director of LBPAM.
Awaiting the Fed’s statement at 6:00 p.m. GMT and Fed Chairman Jerome Powell’s press conference half an hour later, investors will be watching for the final results of S&P Global’s Eurozone manufacturing PMI surveys, and at 12:15 GMT the ADP survey on employment in the private sector in the United States. In values, GSK was up 0.3% after raising its annual earnings forecasts once again to incorporate a better-than-expected third quarter. Among the strongest increases in the Stoxx 600, the Danish Novo Nordisk took 3.32% after also revising its targets upwards. In Paris, Sodexo lost 1.8% after the presentation of its strategic objectives for 2025. The title had risen by nearly 20% in September-October.
(Writing by Marc Angrand, editing by Kate Entringer)