PARIS (Reuters) – European stock markets ended cautiously higher on Tuesday as markets position themselves ahead of two crucial monetary policy meetings for the rest of the year, and before a burst of indicators and results.
In Paris, the CAC 40 gained 0.48% to 7,677.47 points, while the German Dax increased by 0.18% and the British Footsie by 0.44%.
The EuroStoxx 50 index ended the session with an increase of 0.51%, compared to 0.22% for the FTSEurofirst 300 and 0.18% for the Stoxx 600.
Investors are preparing for the next monetary policy announcement from the Federal Reserve, which will release its rate decision on Wednesday.
The central bank is expected to maintain its monetary policy at its current restrictive level, but could clarify its economic outlook for 2024.
“The Fed will probably emphasize economic resilience and the desire to continue the downward trajectory of inflation. Jerome Powell, the governor of the central bank, will try to calm things down while keeping the door open for the next meetings , depending on economic data”, estimates Emmanuel Auboyneau, associate manager of Amplegest.
In Great Britain, the Bank of England will announce its decision on its rates on Thursday. The central bank should remain restrictive, but could change its statements and note that inflation is slowing.
On Wednesday, investors will also be paying attention to preliminary inflation for January in France and Germany. Preliminary inflation for January in the euro zone will be published on Thursday.
In the United States, the monthly report on labor markets for December, published by the Department of Labor, is awaited.
Strong employment has been one of the main drivers of inflation across the Atlantic, and a surprise like that of the Jolt survey on Tuesday could push investors to reassess their economic outlook.
VALUES
Renault gained 1.27% the day after the announcement of the cancellation of the IPO of Ampère, a central pillar of the French car manufacturer’s transformation strategy.
Stellantis jumped 3.84% after General Motors reported an optimistic outlook for 2024.
The European Commission carried out searches on tire groups in several European countries on Tuesday, amid fears of a possible cartel. Michelin fell by 0.84%, Pirelli by 0.7%, Continental by 1.51%.
Diageo, the world number one in spirits, gained 0.65% despite announcing a turnover lower than expectations for its first fiscal half. In the wake of its results, Rémy Cointreau dropped 0.82% and Pernod Ricard 0.65%.
BBVA gained 6.16% after announcing a 32% jump in its fourth quarter net profit.
A WALL STREET
Wall Street is mixed at the close in Europe, with stronger-than-expected employment indicators raising fears that the American economy will be more resilient than expected to rate hikes, which would justify a restrictive monetary policy Longer.
At closing time in Europe, trading on the New York Stock Exchange indicated an increase of 0.17% for the Dow Jones, against a stable Standard & Poor’s 500, and a decrease of 0.37% for the Nasdaq. Composite.
RATE
At the close of the European interest rate markets, the ten-year Treasury yield was stable at 4.0834%, compared to an increase of 4.8 bp for the two-year rate, to 4.3696%.
The yield on the German ten-year rose by 4 bps to 2.278%, while that of the two-year rate rose by 5.6 bps to 2.5325%.
CHANGES
The pound is falling against the dollar, with markets anticipating a more accommodating posture from the Bank of England on Thursday.
The dollar lost 0.14% against a basket of reference currencies, while the euro gained 0.07% to 1.0841 dollars. The pound sterling fell 0.23% to 1.2678 dollars.
OIL
Crude oil advances in a volatile session, with markets torn between a weak Chinese economy and the risk of escalating geopolitical tensions in the Red Sea.
Brent increased by 0.81% to $83.07 per barrel, American light crude (West Texas Intermediate, WTI) increased by 1.52% to $77.95.
(Written by Corentin Chappron, edited by Kate Entringer)
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