SHARES ARE GROWING, GEOPOLITICAL RISK IS RENEWED
of Laetitia Volga
PARIS (Reuters) – Wall Street is expected to rise as European stocks rose slightly in mid-session on Wednesday, the risk of a US-China escalation appears contained for the time being, as bond yields rise in reaction to the shown determination. by members of the Federal Reserve to stem inflation.
Futures contracts report a gain of 0.36% for the Dow Jones and 0.44% for the Standard & Poor’s-500 and Nasdaq.
In Paris, the CAC 40 gained 0.38% to 6,434.38 around 11:50 GMT. In Frankfurt the Dax took 0.21% and in London the FTSE gained 0.1%.
The pan-European FTSEurofirst 300 index was up by 0.13%, the EuroStoxx 50 in the Eurozone by 0.51% and the Stoxx 600 by 0.25%.
Speaker of the US House of Representatives Nancy Pelosi left Taiwan after a brief visit during which she showed US support and solidarity with Taiwanese democracy, arousing the ire of Beijing.
Although China has ordered military maneuvers around Taiwan, investors expect Beijing’s response to remain purely demonstrative, helping global equities rally.
“Nancy Pelosi’s visit did not elicit a truly aggressive response from the Chinese authorities,” said AFS analyst Arne Petimezas.
This relative relief from observers seems to prevail for the moment on the macroeconomic disappointments of the morning, on fears of a possible global recession and on the statements of several presidents of regional Fed offices, determined to fight inflation.
“Most equity indices remain strong so far in August and investors continue to rejoice in a positive earnings season that has seen companies show resilience in an uncertain economic environment,” said ActivTrades’ Pierre Veyret.
“However, bull market drivers are rare, particularly in the medium and long term, and investors are likely to need more clarity on where economies are headed before pushing stock prices to new highs,” he added. the analyst.
VALUES IN EUROPE
Leading the CAC 40, Axa takes 5.84% after posting a net profit up 3% in the first half and Société Générale gains 3.05% after reporting a lower-than-expected loss in the second quarter.
Veolia is down 2.84% after the results.
À Francfort, Commerzbank est en hausse de 1.84% maize BMW en baisse de 5.92% après leurs résultats tandis que Infineon s’adjuge 2.46% après avoir publié des résultats trimestriels au-dessus des attentes et relevé ses perspectives de revenue.
Tod’s jumped by 20.29%, the founding family and main shareholder having announced that it would launch a takeover bid on part of the shares not yet held to get the luxury group out of the market.
Benchmark government bond yields rose following comments deemed restrictive by Fed officials, which raised the prospect of further significant rate hikes by the institution to contain inflation.
That of the American 10-year gains four basis points to 2.7829% and its German equivalent rises nine points to 0.876%.
“It is clear that Fed officials believe market participants have gone too far in lowering their rate hike expectations,” MUFG analysts said. “The Fed’s hawkish comments had an immediate impact.”
On the foreign exchange market, the dollar is practically stable against a basket of reference currencies.
The euro is trading around $ 1.018, up 0.16% despite the contraction in PMI indices and the decline in retail sales in the euro zone.
Oil prices rise ahead of OPEC + announcements after a meeting in which producing countries are expected to discuss a modest increase in supply of around 100,000 barrels per month, according to a document seen by Reuters, while the United States hopes for a greater increase.
Brent was up 0.43% to $ 100.97 a barrel and US light crude (West Texas Intermediate, WTI) 0.56% to $ 94.95.
(Written by Laetitia Volga, edited by Kate Entringer)
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