DECREASING PROCEEDS ARE THE SHARES LOOKING BACK
by Marc Angran
PARIS (Reuters) – Wall Street is expected to rise and European stocks, excluding London, rose mid-session Thursday as falling bond yields allowed stocks to recover, even as monetary policy tightening and the war in Ukraine the potential for a stock market rebound.
Futures contracts on New York’s major indices predict gains of 0.09% for the Dow Jones, 0.26% for the Standard & Poor’s 500 and 0.48% for the Nasdaq.
In Paris, the CAC 40 gained 0.79% to 6,550.48 points at 10:50 GMT and in Frankfurt the Dax was up 0.62%, while in London the FTSE 100 fell 0.03%, penalized by the decline in energy and raw materials.
The EuroStoxx 50 index is up 0.79%, the FTSEurofirst 300 by 0.71% and the Stoxx 600 by 0.73%.
The latter lost 1.53% on Wednesday, the largest single-session drop since March 10, and Wall Street subsequently ended in the red after the release of the minutes of the latest Federal Reserve meeting, which announced the latter’s intention to raise interest rates. increase confirms. and gradually reduce its balance sheet in the coming months.
Investors are now (at 11.30 GMT) awaiting the minutes of the European Central Bank (ECB) meeting in March, hoping for further guidance on the rate hike and halting the plans.
Treasury bond yields nevertheless began to fall again after the all-time high in recent days, with some analysts ruling that the content of the Fed’s ‘minutes’ had already been priced in.
Ten-year US Treasuries fell more than two basis points to 2.5939% and the two-year fell more than six points to 2.4432%.
In Europe, the ten-year-old German returns to 0.645%. Its French equivalent fell more sharply, to 1.17%, after a quiet auction of 11.5 billion euros in OATs, the maximum amount envisaged by the Agence France Trésor (AFT).
At 52.3 points, the 10-year yield spread between French and German stocks continues to narrow after the marked increase at the start of the week, as the presidential elections approach.
In the foreign exchange market, the dollar was virtually unchanged against the other major currencies (+0.06%), very close to the nearly two-year high reached a little earlier in the day.
The minutes of the Federal Reserve meeting “suggest that the Fed is slamming on the brakes, which should be positive for the dollar,” ING analysts summarized in a note.
The euro is hovering around $1.09 pending ECB minutes, after falling to 1.0866, its lowest level since March 8.
WALL STREET VALUES TO FOLLOW
VALUES IN EUROPE
The start of a stock market rally in Europe is benefiting defensive stocks, among other things: the Stoxx health index gained 1.6% and set a record, that of telecommunications at 0.95%, that of services to communities (“utilities “) 0.68%.
In contrast, commodities (-0.25%) and energy (-0.34%) suffered from the strength of the dollar.
Shell (-1.17%) is also being sanctioned after announcing that its departure from Russia would incur extraordinary costs likely to rise to $5 billion, much more than initially estimated.
In M&A news, Italian highway and airport operator Atlantia rose 7.98%. Global Infrastructure Partners (GIP) and Brookfield Infrastructure announced that they have approached him and that he could attract another bid, according to several sources familiar with the matter.
Oil prices confirm their recovery after Wednesday’s plunge, which brought them to their lowest level in three weeks in response to the International Energy Agency’s (IEA) announcement of massive use of its strategic reserves.
Brent gained 1.76% to $102.85 a barrel and US light crude (West Texas Intermediate, WTI) 1.7% to $97.87.
(French version Marc Angrand)