EUROPEAN STOCK EXCHANGES EXPECTED ON THE RISE
by Laetitia Volga
PARIS (Archyde.com) – The main European stock markets are expected to rise on Wednesday at the opening after the positive session on Wall Street, led by technology stocks, although investors remain cautious about the war in Ukraine.
Futures contracts suggest an increase of 0.31% for the CAC 40 in Paris, 0.66% for the Dax in Frankfurt and 0.46% for the FTSE in London.
Another bullish day is looming for European equities after taking advantage the day before of the Federal Reserve Chairman’s statements on a possible higher than usual interest rate hike to face the acceleration of inflation .
“The reaction of the markets, counter-intuitive at first glance, is due to investors’ awareness that the American monetary institution is taking the problem of galloping inflation in the United States ‘hands-on’. “, commented John Plassard at Mirabaud.
Major Wall Street indices rebounded on Tuesday on the back of gains in big tech stocks, other high-growth stocks and the financial sector.
These elements should therefore take precedence over fears linked to the war in Ukraine on which diplomatic discussions have not made any significant breakthrough.
VALUES TO FOLLOW:
A WALL STREET
On Tuesday, the Dow Jones index gained 0.74% to 34,807.46 points, the S&P-500 gained 1.13% to 4,511.61 points and the Nasdaq Composite advanced 1.95% to 14,108.82 points. .
Nike rose 2.2% after reporting quarterly results that beat expectations.
Futures on major US indices suggest a moderately higher session for now.
IN ASIA
The Nikkei in Tokyo gained 3% to 28,040.16 points, its highest level since mid-January, thanks to the rise in technology stocks in the wake of the Nasdaq and auto stocks thanks to the depreciation of the yen.
In China, the Shanghai SSE Composite gained 0.34% and the CSI300 index 0.5%.
RATES/EXCHANGES
In the government bond market, the yield on ten-year Treasury bills US10YT=RR> peaked since May 2019 at 2.4170%, still supported by the speech of Jerome Powell, the chairman of the Fed, which opened the door to rate hikes of more than 25 basis points if necessary in order to fight inflation.
The ten-year German is displayed at 0.515%, up one basis point in early trading.
The greenback is stable against a benchmark basket that includes the euro, at $1.1024.
OIL
Oil prices are on the rise again after the announcement by the American Petroleum Institute (API) of an unexpected drop in crude stocks in the United States last week.
US light crude (West Texas Intermediate, WTI) gained 0.82% to $110.17 a barrel and Brent was up 1.07% to $116.72.