Rise in sight in Europe after Wall Street gains – 03/23/2022 at 08:51

EUROPEAN STOCK EXCHANGES EXPECTED TO RISE

EUROPEAN STOCK EXCHANGES EXPECTED TO RISE

by Laetitia Volga

PARIS (Reuters) – Major European stocks are expected to rise at the open on Wednesday after the positive session on Wall Street, led by technology stocks, although investors remain cautious about the war in Ukraine.

Futures contracts suggest a rise of 0.31% for the Paris CAC 40, 0.66% for the Frankfurt Dax and 0.46% for the London FTSE.

Another bullish day is looming for European equities after taking advantage the day before of the Federal Reserve chairman’s remarks about a possible higher-than-usual rate hike to deal with accelerating inflation.

“The market reaction, counterintuitive at first glance, is because investors are aware that the American monetary institution is taking the problem of galloping inflation in the United States ‘hands on’”, commented John Plassard in Mirabaud.

Wall Street’s main indexes rallied on Tuesday on gains in shares of big tech companies, other high-growth stocks and the financial sector.

Therefore, these elements must prevail over fears related to the war in Ukraine, on which diplomatic discussions have not made significant progress.

VALUES TO FOLLOW:

A WALL STREET

On Tuesday, the Dow Jones Industrial Average gained 0.74% to 34,807.46 points, the S&P-500 gained 1.13% to 4,511.61 points and the Nasdaq Composite advanced 1.95% to 14,108, 82 points.

Nike rose 2.2% after reporting quarterly results that beat expectations.

Futures of the main US indices suggest a moderately bullish session for now.

IN ASIA

Tokyo’s Nikkei gained 3% to 28,040.16 points, its highest level since mid-January, thanks to the rise in technology stocks after the Nasdaq and automobiles thanks to the depreciation of the yen.

In China, the Shanghai SSE Composite gained 0.34% and the CSI300 Index 0.5%.

FEES/CHANGES

In the government bond market, the 10-year Treasury bill yield US10YT=RR> hit its highest point since May 2019 at 2.4170%, still supported by Fed Chairman Jerome Powell’s speech that opened the door to rate increases of more than 25 basis points if necessary to fight inflation.

The ten-year German is shown at 0.515%, one basis point higher in early trading.

The dollar is stable against a reference basket that includes the euro, at $1.1024.

PETROLEUM

Oil prices rise again after the American Petroleum Institute (API) announcement of an unexpected drop in US crude stocks last week.

US light crude (West Texas Intermediate, WTI) gained 0.82% to $110.17 a barrel and Brent rose 1.07% to $116.72.

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