PARIS (Reuters) – Wall Street is expected to rebound at the opening Tuesday and European stock markets advance mid-session as investors put aside their fears of the COVID-19 pandemic to return to the equity market. New York index futures are signaling an open up 0.95% for the Dow Jones and S & P-500, and 1.2% for the Nasdaq.
In Paris, the CAC 40 gained 1.07% to 6.943.50 at 12:26 GMT. In Frankfurt, the Dax takes 1.1% and in London, the FTSE takes 1%.
The pan-European FTSEurofirst 300 index rose by 1.1%, the EuroStoxx 50 in the euro zone by 1.31% and the Stoxx 600 by 1.12%.
Global markets are rebounding after suffering a heatstroke on Monday amid fears over the fiscal situation in the United States and the COVID-19 pandemic.
The rapid spread of the Omicron variant of the coronavirus around the world, a few days before the end of the year holidays, has rekindled uncertainties about the setting of new restrictions and its economic impact.
“Even though Omicron is going to impact real life and the real economy for a few weeks, the markets are hopeful it won’t lead to what everyone fears, which is a global economic downturn,” said Olivier Marciot, portfolio manager at Unigestion.
The DIW research institute is already anticipating a contraction of the German economy for the current quarter and expects a gloomy first quarter in 2022, citing the tensions on the supply chains and possible measures against COVID-19.
The health climate is weighing on the morale of German consumers, the index calculated by the GfK institute having fallen to its lowest since June as January approached.
VALUES TO FOLLOW AT WALL STREET
In pre-market trading, Nike advances 3.7% after reporting quarterly revenue and profit above expectations amid strong demand for its items in America North.
VALUES IN EUROPE
Almost all European sectors are progressing. The Stoxx index of basic resources (+ 2.46%) shows the strongest growth, ahead of that of banks (+ 1.67%) and that of financial services (+ 1.77%).
Semiconductor stocks STMicroelectronics, ASM International, Infineon Technologies and ASML are up 1.72% to 2.09% after US chipmaker Micron Technology reported better than expected results.
The Bolloré group jumped 10.11% after receiving an offer from the shipowner MSC for its transport and logistics activities in Africa on the basis of an enterprise value of 5.7 billion euros.
The mining and metallurgical group Eramet gives up 2.42% after having identified a financial fraud in its cash management.
DBV Technologies fell 18.16% after asking the European Medicines Agency to withdraw its application for marketing authorization for Viaskin Peanut, its flagship experimental treatment for peanut allergy.
CHANGES / RATES
The dollar fell 0.11% against a basket of benchmark currencies and the euro was almost stable at 1.129 dollars.
The Turkish lira has gained 23% since President Recep Tayyip Erdogan unveiled a plan on Monday evening that he said would secure investments denominated in the currency against market fluctuations.
The renewed appetite for risk is reflected in a rise in yields on government bonds. In Europe, that of the German Bund gained more than two basis points to -0.331% and its Italian equivalent five points to 0.988%.
In the US market, the ten-year rose to 1.4498% after touching its lowest level in more than two weeks on Monday, below 1.36%.
OIL
Oil prices erase some of the losses of the previous day: Brent gained 1.47% to 72.57 dollars per barrel while US crude took 1.63% to 69.73 dollars per barrel.
NO MAJOR ECONOMIC INDICATOR ON THE AGENDA
(Laetitia Volga, edited by Tangi Salaün)