Rise in the eurozone, London should decline – 05/03/2022 at 08:46

Rise in the eurozone, London should decline - 05/03/2022 at 08:46

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EUROPEAN STOCK EXCHANGES ARE EXPECTED IN EXPECTED

EUROPEAN STOCK EXCHANGES ARE EXPECTED IN EXPECTED

by Marc Angrand

PARIS (Reuters) – The eurozone’s main stock markets are expected to rise on Tuesday following a positive closure of Wall Street, which could allow them to regain some of the ground they lost the day before, even if they wait for decisions. from the Federal Reserve are likely to limit risk-taking until their announcement on Wednesday.

Futures on the indices indicate an increase of 0.49% for the CAC 40 in Paris, 0.91% for the Dax in Frankfurt and 1.01% for the EuroStoxx 50, while in London, where the markets closed on Monday, the FTSE 100 is expected to fall. 0.84%.

The FOMC, the Fed’s monetary policy committee, is due to begin discussions at 2 p.m. GMT. Markets are still pricing at a half-point increase in the federal funds target (“fed funds”) after the increase in the quarter decided in March. But the real issue with Wednesday’s announcements will be why the central bank and its chairman, Jerome Powell, will have to keep pace with the next rate hikes and cut the balance sheet.

As a prelude to this important meeting for all markets, the Bank of Australia announced a 25 basis point increase in its key interest rate to 0.35%, the first increase in more than ten years, and hinted that it would continue its momentum. in the months to come.

In Europe, the forthcoming meeting will be based mainly on the publication of the results, starting with those of BNP Paribas, the leading listed bank in Europe, whose quarterly net profit increased by 19.2% in one year. Oil company BP, for its part, posted its best quarterly earnings for more than a decade, but also announced $ 24 billion in emergency bills associated with its exit from Russia.

The agenda includes, among others, Pfizer quarterly publications in the United States.

ON THE WALL STREET

The New York Stock Exchange closed higher on Monday after a yo-yo meeting, amid a recovery after its big drop on Friday and cautious investors ahead of this week’s meeting of the Federal Reserve, which is expected to decide on further monetary tightening. to curb inflation.

The Dow Jones industrial average rose 0.26%, or 84.29 points, to 33,061.5, the Standard & Poor’s 500 gained 23.46 points (+ 0.57%) to 4,155.39 and the Nasdaq Composite rose 201 points. , 38 points at 33,061.3% (+ 1,2,3%) (+1.

Twitter (+ 0.3%) rose after Reuters reported that Elon Musk would be looking for investors to help him fund the acquisition of the social network.

Amazon, which had fallen 14% on Friday after its disappointing results and forecasts, ended in the green (+ 0.17%), after losing almost 3% in a session, at its lowest level in almost two years.

Futures on key indicators indicate slightly higher openness at present.

IN ASIA

Markets are closed in Japan and mainland China, as the day is a public holiday in both countries.

In Hong Kong, the Hang Seng Index, which fell at the beginning of the session, is now climbing 0.12%. Alibaba is down 0.59% after falling as much as 9% in response to news of the arrest of a man nicknamed “Ma”, as the stock reduced its losses only after the article was changed to clarify that the person was not the founder of the group.

HSBC is gaining 1.65% after reports that its largest shareholder, insurer Ping An, wants to start thinking about a possible split.

EXCHANGES / INVOICES

The dollar lost ground against other major currencies (-0.16%), but remained close to the highs of the last 20 years before the start of the two-day Fed meeting.

The euro is hovering around the $ 1.05 limit.

In the US bond market, the yield on ten-year Treasury bills reached 3% on Monday for the first time since December 2018.

European yields rose slightly at the beginning of trading, to 0.97% for the ten-year German Bund and 1.491% for the French OAT of the same duration.

OIL

Rising at the beginning of the day, the oil market is now practically stable, despite the prospect of an agreement between European Union member states to tighten sanctions against Russia, including on the energy side.

Brent fell 0.08% to $ 107.49 a barrel and US West Texas Intermediate (WTI) fell 0.07% to $ 105.10.

METALS

Copper and aluminum prices have fallen to a three-month low in London, continued health restrictions in China and the prospect of new US interest rate hikes spark demand fears.

The futures price of copper fell to $ 9,546 per tonne, the lowest since January 31, that of aluminum to $ 3,008, its lowest level since February 3.

(Written by Marc Angrand)

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