2023-12-14 13:21:23
(Photo: The Canadian Press)
MARKET REVIEWS. Global markets were mostly higher Thursday after the Dow Jones industrial average hit a record high, while the Federal Reserve signaled interest rate cuts were likely next year.
Like the Fed, the European Central Bank and the Bank of England are expected to keep their interest rate policies unchanged, as are the central banks of Norway and Switzerland.
Stock market indices at 7:45 a.m.
The DAX German jumped 0.8% and the CAC 30 in Paris rose 1.3%. The British FTSE 100 index rose 2.2%.
In New York, before the markets opened, the average Dow Jones industrial stocks gained nearly 0.2% and the index expanded S&P 500 increased by more than 0.2%.
In Asian markets, Tokyo fell by 0.7% and Shanghai slipped 0.3%. For his part, Hong Kong a bondi of 1.1%.
Seoul grew by 1.3% and Sydney climbed 1.7%.
On the New York Commodity Exchange, the price of oil gained US$1.34, reaching US$70.81 per barrel.
The context
Wall Street is also heading towards an opening up around 0.3% according to futures contracts, after a largely positive session the day before, in the wake of the announcements from the American central bank.
The Fed kept its key rates unchanged on Wednesday evening and a majority of its officials anticipate three or four cuts next year, to bring them to 4.6% at the end of 2024.
The president of the institution, Jerome Powell, also added that the monetary committee had discussed an early timetable for rate cuts.
The Fed “seemed much more flexible than everyone expected”, underlines Ipek Ozkardeskaya, analyst at Swissquote Bank, for whom this “clearly showed that the change in monetary policy was imminent”.
“A Christmas gift delivered early to the markets,” summarizes Michael Hewson, analyst at CMC Markets.
On the bond market, the interest rate on the ten-year United States debt has fallen below 4%, a first since August. Around 7:15 a.m., it stood at 3.96%.
The American dollar ($US) was weakened by the end of the Fed’s monetary tightening cycle and lost 0.59% against the euro, to US$1.0939 per euro.
The yield on Germany’s ten-year debt fell sharply to 2.10%, near its lowest level since March 2023, compared to 2.17% at Wednesday’s close, before the Fed’s announcements. .
Investors’ attention now turns to the meeting of the European Central Bank (ECB), the conclusions of which will be announced at 08:15.
Earlier in the day, the Swiss central bank left its monetary policy unchanged without revealing when it might consider lowering rates. On the other hand, the Bank of Norway raised its key rate by 0.25 percentage points.
Real estate celebrates possible rate cut
Shares of companies in the real estate sector are celebrating on Thursday. The rise in interest rates had weighed heavily on their activities in 2023.
In Paris, Unibail-Rodamco-Westfield (UNIRF) climbed 5.76%, Icade (CDMGF) of 5.36% and Klepierre (KLPEF) of 4.18%. In Frankfurt, Kill (KILL) took 7.79%, LEG real estate (LEG.BE) 5,92% et Adler (ADJ.VI) 8.86%. In London, IWG (IWG.F) rose by 6.69%.
On the side of oil and bitcoin
Oil prices are increasing. Around 07:10 GMT the price of a barrel of North Sea Brentfor delivery in February, took 1.79% to US$75.59 and its American equivalent, a barrel of West Texas Intermediate (WTI) for delivery in January, 1.71% to US$70.66.
The bitcoin was stable at US$43,187.
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