PARIS (Reuters) – The main European stock markets are expected to rise on Tuesday and should benefit from the momentum given by Wall Street, which ended up sharply after statements deemed generally reassuring by Federal Reserve officials on the expected rise in interest rates of interest.
Futures contracts on indices suggest an increase of 0.55% for the CAC 40 Paris, 1.08% for the Dax Frankfurt, 0.73% for the FTSE 100 London and 1.3% for the EuroStoxx 50 .
The Parisian index fell 2.35% over the whole of January and the broad European Stoxx 600 index 3.88%, its worst monthly performance since October 2020.
February should start on a more positive tone thanks to the good performance of American equities on Monday, led by technology, after the declarations of several leaders of the Fed, who confirmed that they were considering a rate hike in March but maintained the vagueness for the future face. uncertainties about inflation and the impact of the pandemic.
“We are indeed on the way to a rise in March,” said Reuters, for example, the President of the San Francisco Fed, Mary Daly. “But after that I want to see what the data tells us… Let’s wait until we pass Omicron, let’s wait for that and we’ll see.”
This speech could interrupt the upward revision of rate expectations observed in recent days, which has led some economists to expect five, six or even seven rate hikes from the Fed by the end of the year.
At the same time, pending the decisions of the Bank of England and the European Central Bank (ECB) on Thursday, investors also note that the RBA, the Australian central bank, has ended its purchases of securities on the markets but has not showed no rush to raise its key rate, still set at 0.1%, its historic low.
Today’s session will also be animated by the final results of the IHS Markit PMI surveys in the manufacturing sector and by the ISM for the sector in the United States.
AT WALL STREET
The New York Stock Exchange ended up Monday thanks to the rebound in technology stocks, which saw the Nasdaq record the worst performance in its history for a month of January.
The Dow Jones index gained 1.17%, or 406.39 points, 35,131.86 points, the Standard & Poor’s 500 gained 83.7 points (+1.89%), 4,515.55 and the Nasdaq Composite advanced by 469.31 points (+3.41%, its best percentage performance since last March) 14,239.88.
The latter thus brings back its monthly decline of 8.99%, its worst month of January since 2008. The S&P-500 lost 5.26% in one month and the Dow Jones 3.32%.
Among the day’s highlights, Tesla jumped 10.7% after Credit Suisse’s “outperformance” rating was raised and Boeing gained 5.1% after a large order from Qatar Airways.
Futures so far suggest an open down about 0.2%.
IN ASIA
the Tokyo Stock Exchange, the Nikkei index gained 0.28%, its third positive performance in a row, benefiting from the momentum given by Wall Street and optimism about the results of Japanese companies.
Sony ended up slightly (+0.39%) after the announcement of the takeover of the American video game publisher Bungie for 3.6 billion dollars, its first response to the acquisition of Activision Blizzard by Microsoft.
In China, markets are closed for Lunar New Year celebrations.
The Sydney Stock Exchange takes 0.49% after the RBA’s decision.
EXCHANGES/RATES
The dollar fluctuates against the other major currencies (+0.01%) the day after its biggest drop in nearly three weeks (-0.75%) following statements by Fed leaders.
The euro is trading around 1.1240 dollars.
The Australian dollar has almost returned to equilibrium (+0.04%) after having initially lost ground in reaction to the announcements of the RBA.
On the bond market, the yield on ten-year US Treasury bills was stable at 1.7732% and the two-year rate was up very slightly at 1.1711%. The latter took 45 basis points over the whole of January, its largest monthly increase since January 2009.
In Europe, the ten-year German Bund yield, which jumped nearly five points on Monday after Germany’s monthly inflation figures, is down slightly in early trade at 0.004%.
PETROLEUM
The oil market is trending up, not far from the seven-year highs reached last week, the day before the “OPEC+” meeting, which should confirm its strategy of limited increase in global supply in the face of continued the resumption of demand.
Brent gained 0.3% to 89.53 dollars a barrel and American light crude (West Texas Intermediate, WTI) took 0.31% to 88.42 dollars.
They gained 17.6% and 17.2% respectively in January.
(said by Blandine Hnault)
by Marc Angrand