EUROPEAN STOCK EXCHANGES OPEN UP
PARIS (Reuters) – The main European stock markets rose at the start of the session on Wednesday, benefiting from the rise in car and banking stocks, which temporarily relegated to the background concerns linked to inflation, the rise in interest rates and the their impact on the economy.
In Paris, the CAC 40 gained 0.28% to 6,487.20 points around 07:45 GMT. In London, the FTSE 100 takes 0.14% and in Frankfurt, the Dax advances by 0.42%.
The EuroStoxx 50 index is up 0.28%, the FTSEurofirst 300 0.21% and the Stoxx 600 0.05%.
The month of June is therefore starting on a positive note, but today’s busy schedule could call this trend into question.
After the early morning announcement of a stronger than expected 5.4% drop in retail sales in Germany in April, the rest of the session will be driven by the final figures of the PMI manufacturing indices in Europe , before the ADP survey on private employment and the ISM manufacturing index in the United States, without forgetting the monetary policy decision of the Bank of Canada, which should raise its key rate by half a point, to 1 .5%.
The prospect of a rise in the rates of the major central banks and the inflation records recorded in the euro zone continue to favor the rise in bond yields: that of German ten-year securities reached 1.159%, its highest level since May 9 .
This movement favors banking stocks, whose Stoxx index gains 0.61%.
The largest sectoral increase at the start of the session was for the automobile compartment, which took 1.05%.
Renault gained 1.98%, the biggest rise in the CAC 40, after its ally Nissan in Tokyo jumped 7.77% in response to a very favorable study by JPMorgan, which predicts record profits for the Japanese auto sector for the exercise in progress.
Among the significant declines at the start of the session, DWS, the asset management subsidiary of Deutsche Bank, fell 6.95% in reaction to the departure of its chairman of the management board the day after a search of its premises.
(Writing by Marc Angrand, editing by Kate Entringer)