New rise in sight on Wall Street, stock market Europe at its highest – archyde

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected in the green Thursday and could still break records at the opening as European stock markets advance at mid-session, moving to highs, in the aftermath of the US Federal Reserve’s announcements.

New York index futures are signaling a close to equilibrium open for the Dow Jones, up 0.15% for the S & P-500 and 0.4% for the Nasdaq.

In Paris, the CAC 40 gained 0.37% to 6,976.06 around 11:20 GMT and hit a new all-time high at 6,993.01.

In Frankfurt, the Dax (+ 0.53%) also registered a historic high at 16,050.60 points and in London, the FTSE clusters 0.02%.

The EuroStoxx 50 index is up 0.49%, its highest since January 2008. The FTSEurofirst 300, up 0.48%, and the Stoxx 600, + 0.49%, both set records.

The Fed, as expected, announced on Wednesday that it would start reducing its bond purchases in the markets this month, but reiterated that it said inflation was largely “transient” and should not. justify a faster rate hike than anticipated.

“What we’ve heard from the Fed is that next year the central banks are going to let go but they are not going to squeeze the brakes,” said Hugh Gimber, global markets strategist at JP Morgan Asset Management.

“The fact that monetary policy will remain accommodative for some time to come is good news for stocks.”

Christine Lagarde for the European Central Bank had already said on Wednesday that it was very unlikely that the ECB would decide on a rate hike in 2022.

But the Bank of England could take a whole different turn and announce a rate hike after its meeting at 12:00 GMT. At least that is what part of the market anticipates as economists polled by Reuters believe it will observe a status quo.

VALUES TO FOLLOW AT WALL STREET

In pre-market trading on Wall Street, Qualcomm, the global smartphone chip giant, gained 8% after forecasting earnings and sales above expectations for the current quarter on Wednesday evening thanks to strong demand.

VALUES IN EUROPE

The session is punctuated by a series of publications from companies including Societe Generale, which took 2.11% after better than expected results for the third quarter.

Veolia is at the top of the CAC 40 after its results and, on the side of the SBF 120, Orpea (+ 4.00%) and CGG (+ 5.01%) are well supported after their publications.

This is not the case with Teleperformance which sells 3.16% or Amundi (-2.48%).

Outside the Parisian quotation, Commerzbank stands out (+ 6.3%) after having pleasantly surprised investors by predicting a return to profitability this year after better than expected net profit in the third quarter.

In Zurich, the Roche laboratory grants itself 1.66% after the announcement of the acquisition of Novartis’ stake (-0.01%) in its capital.

CHANGES

The dollar index, which measures the fluctuations of the greenback against a basket of benchmark currencies, erased the losses of the day before following the announcements by the US Federal Reserve that it would be “premature” to start now an increase of rate.

The euro, which benefited from the weakening of the dollar on Wednesday, now yields 0.53%, to 1.1548.

Movements in the British pound will be one to watch as traders anxiously await announcements from the Bank of England. The British currency accentuated its decline and fell 0.39% against the dollar.

RATE

On the bond market, the yield on 10-year Treasuries is 1.5735%. Its German equivalent gave up two basis points, around -0.185%, close to the one-month low reached the day before in reaction to Christine Lagarde’s statement on the low probability of a rate hike in 2022.

OIL

The oil market has erased its losses at the start of the session as investors expect OPEC +, which meets this Thursday, to maintain the current agreement on a production increase of 400,000 barrels per day in December .

A barrel of Brent gained 1.84% to 83.5 dollars and US light crude 1.76% to 82.28 dollars.

(Laetitia Volga, edited by)