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MARKET REVIEW. The markets, which are experiencing strong variations this week, benefited from cheap buybacks a few hours before the conclusions of the American Federal Reserve at the end of a two-day meeting.
Investors seized the opportunities caused by a big air pocket at the start of the week with a pronounced taste for cyclical stocks.
Enough to frankly raise the European indices. Wall Street, which plunged Tuesday after its burst at the end of the session on Monday, should follow the same trend: futures contracts on the main indices showed an increase before the opening.
Stock market indices at 7:43 a.m.
In the United States, futures contracts Dow Jones gained 318.00 points (+0.93%) to 34,503.00 points. The futures contracts S&P 500 rose by 57.25 points (+1.32%) to 4,406.25 points. The futures contracts Nasdaq increased by 263.50 points (+1.86%) to 14,404.25 points.
In Europe, results are up. In London, the FTSE 100 rose 129.95 points (+1.76%) to 7,501.41 points. In Paris, the CAC 40 advanced 156.80 points (+2.29%) to 6,994.76 points. In Frankfurt, the DAX collected 346.24 points (+2.29%) at 15,470.11 points.
In Asia, the Nikkei of Tokyo fell by 120.01 points (-0.44%) to 27,011.33 points. For his part, the Hang Seng Hong Kong rose 46.29 points (+0.19%) to 24,289.90 points.
On the oil side, the price per barrel of American WTI rose US$0.84 (+0.98%) to US$86.44. The barrel of Brent de la mer du Nord rose US$1.04 (+1.18%) to US$89.24.
The context
The volatility that made a big splash in the markets this week should, according to experts, still keep investors company for some time.
Market participants are hoping to gain visibility on the timing and pace of the U.S. central bank’s key rate hikes for 2022 following a meeting of its monetary policy committee on Wednesday.
But they are worried about the consequences of the upcoming rate hike on the most valued sectors.
The Fed has already begun to normalize its monetary policy by slowing its purchases of securities since November, a premise for a rate hike planned for March before starting to reduce the size of its balance sheet.
“Some of the announcements may already be priced in, but if the Fed is really very late in its fight against inflation, the markets will not stop rocking in the coming months,” warns Tangi Le Liboux, analyst at Aurel BGC.
Investors fear that monetary normalization is happening too quickly and at the wrong time as risks mount.
In addition to the results of companies to watch, electoral deadlines and geopolitical tensions around Ukraine are worrying, and growth prospects are withering.
The International Monetary Fund (IMF), which now anticipates global growth of 4.4% this year, 0.5 points less than in October.
The German government lowered its growth forecast for 2022 to 3.6% on Wednesday, against 4.1% still expected in the fall.
European justice on Wednesday canceled a fine of 1.06 billion euros imposed in 2009 by Brussels on the American manufacturer of electronic chips Intel, for abuse of dominant position linked to disputed rebates.
The deliveries from Airbus Helicopters increased by 12.6% in 2021 to 338 aircraft, exceeding their level before the health crisis, while orders soared by 54% thanks to several state contracts, including France. The title Airbus (AIR.PA) also benefited from several analyst recommendations and gained 5.02% to 113.80 euros in Paris around 6:38 a.m. Quebec time.
Oversold in recent sessions, the travel sector regained ground: IAG (IAG.L) +7.39% to 158.90 pence, Carnival (CCL) +5.96% to 1408 pence, TUI (TUI.L) +5.04% to 258.40 pence. In Paris, Air France–KLM (AF.PA) gained 4.17% to 4.05 euros. In Frankfurt, Fraport (FRA.DE, +2.51% to 62.78 euros, at MDax) Lufthansa (LHA.DE, +5.8% to 7.07 euros, at MDax) followed the trend.
The title of the seller of pet supplies Pets At Home (PETS.L, +3.01% to 430.60 pence) climbed after good results and raised forecasts.
Oil prices rose slightly on Wednesday before the release of weekly data on US commercial inventories in a market galvanized by tensions in Ukraine and the Middle East which threaten the supply of black gold.
The euro yielded 0.12% to 1.128 1 US dollar around 6:30 am.
the bitcoin was up 3.65% at US$37,920.