Former Paris Stock Exchange
PARIS (Reuters) – The main European stock markets are on the rise on Tuesday morning, driven in particular by the technological compartment, the markets expecting a status quo on the rates of the American Federal Reserve (Fed) and a slowdown in inflation in the USA.
In Paris, the CAC 40 took 0.6% to 7,293.56 points around 08:10 GMT. In London, the FTSE 100 advances by 0.26% and in Frankfurt, the Dax gains 0.36%.
The EuroStoxx 50 index rose by 0.57%, the FTSEurofirst 300 by 0.5% and the Stoxx 600 by 0.33%.
Futures contracts on Wall Street predict a gain of 0.04% for the Dow Jones, 0.24% for the Standard & Poor’s 500 and 0.57% for the Nasdaq.
The Fed begins a two-day meeting on Tuesday after which it will make its monetary policy decisions. Markets are pricing in an 80% probability of maintaining the federal funds rate target at 5.00%-5.25%.
Regarding the data on consumer prices, which will be published at 12:30 GMT, the Reuters consensus forecasts a slowdown in inflation to 4.1% in May year on year after +4.9% the previous month. In Germany, inflation was confirmed at 6.3% over one year in May after +7.6% the previous month.
On the stock market, the index of technology stocks (+1.57%), sensitive to fluctuations in interest rates, is at the top of the Stoxx 600. It is also benefiting from the solid results of Oracle, whose stock listed in Frankfurt jumped 5.1% after having already won the day before on Wall Street 7%.
In Paris, Teleperformance, up 2.75%, recorded the strongest growth in the CAC 40, alongside stocks like STMicroelectronics (+1.02%) or Capgemini (+0.58%). Elsewhere in Europe, ASML, Infineon and SAP take from 0.95% to 2.1%.
Swedish video game specialist Embracer climbs 3.86% after the announcement of a restructuring plan intended to save it 800 million crowns (68.8 million euros) per year, while its compatriot Hexagon gains 4.42% with the announcement of a collaboration with Nvidia
The luxury sector (+1.19%), considered to be part of the growth stocks and therefore also sensitive to changes in the cost of credit, is also well oriented. LVMH, Hermès and Richemont advance from 1.24% to 1.62%
On the downside, Unibail-Rodamco-Westfield (-2.20%) fell victim to profit taking the day after its sharp rise.
(Written by Claude Chendjou, edited by Blandine Hénault)