European markets rise ahead of Fed conclusions

The CAC 40 rose 0.13%, the German DAX gained 0.29% and the Milan index 0.04%. The London Stock Exchange, for its part, fell 0.44%.

European stock markets, with the exception of London, rose on Wednesday, positioning themselves favorably ahead of the conclusions of a meeting of the US Central Bank whose culmination was to be economic forecasts for the next three years.

In Paris, the CAC 40 rose 0.13%, the German Dax gained 0.29% and the Milan index 0.04%. The London Stock Exchange for its part fell by 0.44%, penalized by the firmness of the pound in the midst of psychodrama on Brexit.

From the Fed meeting, nothing is expected on the level of interest rates, which move in a range of 0 to 0.25% after being lowered urgently to deal with the economic consequences of COVID-19.

It is especially the economic forecasts, which the monetary institution gives four times a year, which will be scrutinized very closely. The Fed will deliver its expectations until 2023.

Philippe Cohen, manager at Kiplink, expressed his “astonishment” at the stock market’s lack of enthusiasm before the Fed’s conclusions, the latter having already announced “a lot” to reassure investors in recent months.

In addition to interest rates at a historic low, and massive purchases of financial securities in the markets, the organization led by Jerome Powell recently overturned its historical philosophy by indicating that it would tolerate inflation above 2% for a time. without leading to an automatic rate hike.

Philippe Cohen noted however that the rise of the stock market at the end of the session showed that investors were showing “reason”.

In reverse of this fear, the OECD announced Wednesday in its economic outlook forecasts of a less pronounced global recession than expected in 2020. The United States should experience a recession of 3.8% this year and a rebound of 4% next year.

ALSTOM’S DISCOUNT

The French railway manufacturer (+ 0.77% to 45.70 euros) announced the signing of the contract to acquire Canadian Bombardier Transport for a price revised downwards, “expected up to 5.3 billion euros” .

THE CHAHUTEES BANKS

The small decline in sovereign yields at work on Wednesday hurt them: Societe Generale fell 0.20% to 12.97 euros, BNP Paribas 0.35% to 35.71 euros and Crédit Agricole 1.05 % to 8.45 euros.

In London, low inflation and the prospect of further quantitative easing from the Bank of England spilled over to HSBC (-1.80% to 317.00 pence).

MALMENEE AERONAUTICS

The increasing restrictions on gatherings and travel affect companies in the sector: the engine manufacturer Rolls-Royce dropped 5.39% to 192.35 pence, and IAG, parent company of British Airways, 0.90% to 132.20 pence . Airbus for its part took 1.89% to 70.79 euros after a last minute rebound.

EMBELLISHED FOR LUXURY

The Italian Salvatore Ferragamo jumped 8.03% to 13.18 euros on the Milan Stock Exchange, driven by the marked recovery in sales in China since July. In Paris, Hermès and Kering each gained more than 1%.

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