PARIS (Reuters) – The main European stock markets are moving up on Tuesday morning for the second consecutive session against a backdrop of ebbing fears around banks and pending decisions from the American Federal Reserve (Fed) which meets for two days .
In Paris, the CAC 40 took 1.29% to 7,103.48 points around 08:50 GMT. In London, the FTSE 100 advances by 1.18% and in Frankfurt, the Dax gains 1.3%.
The EuroStoxx 50 index rose by 1.38%, the FTSEurofirst 300 by 1.06%. The Stoxx 600, which fell Monday in session to its lowest level since the beginning of the year, continues to rise with a gain of 1.26%.
Futures contracts on Wall Street also foreshadow a session in the green with an increase of 0.24% for the Dow Jones, 0.34% for the Standard & Poor’s 500 and 0.22% for the Nasdaq.
Calm has returned to the markets with the rescue of the bank Credit Suisse, bought by its competitor UBS under pressure from the Swiss authorities.
Investors are now turned to the Fed, which will publish its monetary policy statement on Wednesday after two days of debate, while that of the Bank of England is scheduled for Thursday.
For these two central banks, the markets are torn between raising rates by 25 basis points and taking a break in a context of bank fragility.
“The banking sector’s near-death experience over the past two weeks should make Fed officials more measured in their stance on the pace of increases,” said Steve Englander, director of foreign exchange research at Standard Chartered.
On the stock market, the positive trend in Europe is led by the banks, whose index jumped 3.52%, moving towards its best performance over a session in five months.
Credit Suisse dropped 2.11% and UBS rose 3.38%. In Paris, the banks BNP Paribas (+4.66%) and Société Générale (+3.35%) are also sought after. However, the banking index is still down more than 14% since the beginning of the month.
In corporate news, Pernod Ricard is in the green after the announcement of the takeover of the American whiskey brand Skrewball. On the SBF120, Sopra Steria lost 2.37% after the conclusion of a memorandum of understanding for the acquisition of its Dutch competitor Ordina, which soared 23.43%.
In Frankfurt, RWE gains 2.14%, the first German group of utilities having announced an increase in the dividend and investments in renewable energies, while Thyssenkrupp gains 3.91% due to disagreements within the management of the group on the planned split of the steel division which is attracting the interest of CVC Capital Partners, according to information from Handelsblatt.
In London, Kingfisher is stable despite a 20% drop in annual profit.
(Written by Claude Chendjou, edited by Blandine Hénault)
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