by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to rise and European stock markets rose mid-session on Tuesday, supported by the various measures taken in favor of the banking sector and by the hope that the Federal Reserve will opt for a moderate increase in its interest rate.

Futures contracts are signaling a gain of 0.85% for the Dow Jones, 0.84% ​​for the Standard & Poor’s-500 and 0.7% for the Nasdaq.

In Paris, the CAC 40 takes 1.55% to 7,122.07 points around 11:45 GMT. The Dax rose by 1.66% in Frankfurt and the FTSE by 1.44% in London.

The pan-European FTSEurofirst 300 index gains 1.38%, the EuroStoxx 50 in the euro zone advances by 1.66% and the Stoxx 600 gains 1.4%.

The latter has taken up 2.5% since Friday, the series of initiatives taken on both sides of the Atlantic since the debacle of several American regional banks and Credit Suisse allowing the markets to regain their calm.

The emergency rescue of the Swiss bank by UBS, the aid of several billion dollars provided by the largest American banks to First Republic or even the agreement of the major central banks to facilitate access to liquidity in dollars – a device lightly used since Monday, however – have helped ease financial stability concerns.

In addition, according to the Bloomberg agency, the American authorities are considering ways of temporarily guaranteeing bank deposits beyond the current limit of 250,000 dollars.

“With no new problems in the banking sector over the past 24 hours, markets are hoping to see this as a sign that the crisis may have peaked,” said Russ Mould, chief investment officer at AJ Bell.

“The Fed’s next decision could still cause turmoil if the market believes it is too aggressive in raising its rates,” he warns.

However, such a prospect seems unlikely based on CME’s FedWatch barometer: investors estimate the probability of a 25 basis point rate hike on Wednesday at 83.4% and that of 16.6% on Wednesday. a status quo.

Investors will study the speech of the president of the institution on inflation and the banking situation but also the “dot plot”, the forecasts of the members of the FOMC on the future evolution of rates.

VALUES IN EUROPE

The European banking index jumped 3.17%, the largest sectoral increase.

The course of Credit Suisse is little changed at 0.8226 Swiss francs, against a purchase offer by UBS at 76 cents.

In Paris, Credit Agricole, Societe Generale and BNP Paribas take from 2.05% to 3.37%.

Thyssenkrupp gained 5.78%, sources having indicated that several groups, including the CVC fund, would be interested in the steel activity of the German conglomerate.

RWE takes 2.53% after announcing the payment of a higher dividend and more investments in the field of renewable energies.

RATE

Bond yields are regaining ground after their sharp decline in Monday’s session. That of the ten-year German Bund is displayed at 2.271%, its French equivalent at 2.794%.

The ten-year American takes nearly seven basis points to 3.5468%.

CHANGES

On the foreign exchange market, the dollar is down slightly (-0.23%) against a basket of reference currencies. The euro gained 0.58%, around 1.0781 dollar.

OIL

Like equities, the oil market also rebounded, the barrel of Brent taking 0.65% to 74.27 dollars and that of American light crude 0.75% to 68.15 dollars.

(Laetitia Volga, edited by Bertrand Boucey)

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