by Claude Chendjou
PARIS (Reuters) – Wall Street is expected to rise on Wednesday and European stocks traded in the green mid-session, risk appetite boosted by renewed hopes of a lull in the rise in interest rates. interest after the absence of comments the day before from the chairman of the American Federal Reserve (Fed), Jerome Powell, on the subject.
Futures on New York indices signal an opening of Wall Street up 0.22% for the Dow Jones, 0.25% for the Standard & Poor’s 500 and 0.21% for the Nasdaq. In Paris, the CAC 40 advanced by 0.98% to 6,936.14 around 11:55 GMT. In Frankfurt, the Dax took 1.11% and in London, the FTSE rose 0.61%.
The pan-European FTSEurofirst 300 index gained 0.52%, the eurozone EuroStoxx 50 1.09% and the Stoxx 600 0.61%.
Speaking at a conference in Sweden on the independence of central banks, Jerome Powell, did not go back on the declarations of two members of the Fed, Mary Daly and Raphael Bostic, who had pleaded Monday evening for interest rates above 5% for an extended period, raising the specter of a longer and deeper monetary tightening than expected.
For the Saxo strategists, the markets are currently celebrating “the absence of a clear direction on monetary policy” while awaiting the consumer price (CPI) figures in the United States which will be published on Thursday.
“The real driver of everything this week is the US CPI data due tomorrow and we expect it to be slightly weaker than expected,” said Mark Taylor, trader at Mirabaud Securities.
Investors also have their sights set on the start of the quarterly earnings season which will be given on Friday by the major American banks.
VALUES IN EUROPE
Among the major compartments of the European rating, energy takes 0.36% and basic resources 0.79%, investors showing optimism with the reopening of the Chinese economy.
In individual values, LVMH advances by 1.92% after the announcement of the appointment of Pietro Beccari as CEO of Louis Vuitton and Delphine Arnault as head of Christian Dior Couture.
Bayer climbed 3.48% after reports from Bloomberg that activist fund Bluebell Capital Partners took a stake in the group and is pushing for a dismantling of the corporate structure.
On the downside, Sainsbury’s fell 1.63%, the warning of its managing director, Simon Roberts, on the evolution of consumption in general having taken precedence over the increase in the group’s annual profit forecast.
The insurer Direct Line plunged 25% after the unexpected cancellation of the 2022 dividend. Its competitors Admiral and Aviva yielded 7.482% and 3.36% respectively.
Meal delivery specialist Deliveroo dropped 1.76% in response to JPMorgan’s downgrade.
CHANGES
The dollar is almost stable (+0.03%) against a basket of six international currencies, as investors await US inflation data which could confirm a slowdown in price growth to 6.5% over a year, according to the Reuters consensus.
The euro was up slightly, at 1.0752 dollars (+0.17%), close to a seven-month high against the greenback.
RATE
The ten-year German Bund yield fell seven basis points to 2.23%, while that of US Treasury bonds of the same maturity fell four points to 3.57%.
OIL
Oil prices, volatile, evolve in small variations after the announcement of a surprise increase in crude stocks in the United States last week.
Brent gained 0.56% to 80.55 dollars a barrel and US light crude (West Texas Intermediate, WTI) 0.39% to 75.41 dollars.
(Written by Claude Chendjou, edited by Blandine Hénault)
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