The Euronext stock exchange in the La Defense district of Paris, France
by Laetitia Volga
PARIS (Reuters) – Europe’s main stocks should continue to rise at the open on Tuesday after Wall Street surged sharply and the British government’s setback to its fiscal program.
The first available indications give a gain of 1.11% for the Parisian CAC 40, 1.14% for the Frankfurt Dax, 0.77% for the London FTSE and 1.16% for the EuroStoxx 50.
The Stoxx 600, Europe’s benchmark index, gained 1.83% on Monday, posting its best close in almost two weeks, as Britain’s new finance minister scrapped almost all of his predecessor’s tax and fiscal plans. .
The relaxation observed in the bond markets, as well as the good reception of the results on Wall Street of the Bank of America, also contributed to the improvement in market confidence.
“When you have a market oversold in the face of so much bearishness, it doesn’t take much to push it,” said Quincy Krosby, head of global strategy at LPL Financial, referring in particular to the ever-present concerns about rising interest rates, possible recession, runaway inflation and business results.
The markets will be attentive in the afternoon to the publication of the quarterly accounts of Goldman Sachs, the last major US bank to publish, and before the ZEW index of investor sentiment in Germany (09:00 GMT).
ON WALL STREET
The New York Stock Exchange closed sharply on Monday, buoyed by the British government’s withdrawal of fiscal measures announced last month, and by Bank of America results.
The Dow Jones Industrial Average gained 1.86% to 30,185.82 points, the S&P-500 gained 2.65% to 3,677.95 points and the Nasdaq Composite .IXIC jumped 3.43% to 10,675.80 points.
Bank of America rose 6.06% after reporting third-quarter earnings per share that beat expectations.
Goldman Sachs rose 2.24% on reports that the group will announce a major business reorganization on Tuesday.
Major growth stocks like Apple AAPL.O (+2.91%), Meta Platforms META.O (+5.74%), Amazon AMZN.O (+6.44%) or Tesla TSLA.O (+7.0%) were in the game , taking advantage of the sharp drop in Treasury bond yields.
Futures are signaling a 1.4% open to 1.8%.
Following Wall Street, the Nikkei on the Tokyo Stock Exchange rose 1.47%.
In China, the main stock indices are moving without much change, and investors prefer to stay on the sidelines during the celebration of the 20th Congress of the Communist Party.
The release of expected economic indicators for this week, including third-quarter gross domestic product, has been postponed.
“We are not concerned that the delay in the data release is related to its weakness. Rather, this report suggests that the government believes that Congress is the most important thing happening in China right now,” said analysts at ing in a note.
Mainland China’s large-cap CSI 300 index up 0.19% and Shanghai’s SSE Composite up 0.25%
US Treasury yields have started to fall again: the 10-year bond, losing five basis points, is back below 4%. The two-year-old and the five-year-old also decrease.
With the drop in Treasury bond yields and the renewed appetite for risk, the dollar maintains a downward trend against a basket of international currencies (-0.15%) after having fallen by 1.12%. the previous day.
The euro thus rose to $0.9854, the lowest since October 6.
Oil prices are rising thanks to the falling US dollar.
Brent gained 0.73% to $92.29 a barrel and US light crude (West Texas Intermediate, WTI) 0.85% to $86.19.
(Written by Laetitia Volga, edited by)
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