Few changes in Europe pending the Fed – 05/04/2022 at 08:02

Few changes in Europe pending the Fed - 05/04/2022 at 08:02

[ad_1]

Few changes in Europe awaiting the Fed

Few changes in Europe awaiting the Fed

from Laetitia Volga

PARIS (Reuters) – Major European stock markets are expected to show a slight change in opening on Wednesday, with caution in the face of the Federal Reserve (Fed) monetary policy decision, which is expected to announce a further rate hike.

The first available indications show a rise of 0.09% for the CAC 40 in Paris, 0.07% for the FTSE in London and a fall of 0.01% for the Dax in Frankfurt.

The Fed will make its monetary decision at 6:00 p.m. GMT, while at 6:30 p.m. GMT will be followed by a press conference by US Federal Reserve Chairman Jerome Powell.

Faced with rising inflation, the market is widely expected to raise interest rates by half a point. Such a move by the Fed would be the largest increase in interest rates since May 2000.

Investors are mainly waiting for comments from the institution on the future course of interest rates, inflation and a possible announcement of a reduction in its balance sheet.

“It is possible that the Fed will announce a reduction in its bond markets of up to $ 60 billion a month and securities mortgages (MBS) of $ 35 billion,” Michael Hewson told the CMC. Markets.

Before the end of the Fed meeting, investors will follow the release of several statistics, including the final PMI for April and the ADP monthly survey on private employment in the United States (12:15 GMT), in two days of the Monthly report of the Ministry of Labor.

ON THE WALL STREET

The New York Stock Exchange closed higher on Tuesday after an abnormal session as investors turned to high-growth stocks. [.NFR]

The Dow Jones industrial average was up 0.20% at 33,128.79 points, the S & P-500 was up 0.48% at 4,175.48 points and the Nasdaq Composite was up 0.22% at 12,563.76 points.

Large stocks such as Apple (+ 0.96%) and Tesla (+ 0.7%) contributed significantly to earnings on significant Wall Street indices.

Estée Lauder fell 5.8% after lowering its full-year earnings forecast, citing health restrictions in China and the crisis in Ukraine.

Western Digital was among the best performers of the session, up 14.5% after the Elliott activist fund urged the IT group to exit the flash memory industry underperformance.

Futures on indices give an opening close to equilibrium for the time being.

IN ASIA

Markets in Japan and mainland China are closed due to a holiday.

In Hong Kong, the Hang Seng Index fell -1.28%, punishable by a drop in technology stocks. Meituan lost -5.74% and JD Health International -12.67% after major shareholders reduced their stakes in both companies.

EXCHANGES / INVOICES

The dollar is stable against a basket of currencies, with expectations for monetary tightening in the United States already stabilizing in prices.

For its part, the euro appears at 1.0511 dollars.

In the bond market, the yield on ten-year bonds stands at almost two basis points at 2.9751%

OIL

The oil market is on the rise after the American Petroleum Institute (API), according to market sources, announced a drop in crude oil and fuel stocks in the United States last week, raising supply concerns.

Brent was up 1.14% at $ 106.17 a barrel and US light crude (West Texas Intermediate, WTI) was up 1.28% at $ 103.72.

(Written by Laetitia Volga, edited)

.

[ad_2]

Source link

Leave a Comment

Your email address will not be published.