PARIS (Reuters) – European markets are progressing at the opening on Tuesday, supported by the bond easing in the United States and despite a context of caution due to the conflict between Israel and Hamas and ahead of key indicators this week.
In Paris, the CAC 40 advanced 1.3% to 7,112.7 points around 07:32 GMT. In Frankfurt, the Dax gained 1.49%, compared to 1.1% for the FTSE in London.
The pan-European FTSEurofirst 300 index gained 1.1%, the EuroStoxx 50 1.47% and the Stoxx 600 1.24%.
New York index futures suggest Wall Street opening in the green, with the Dow Jones rising 0.16%, compared to 0.15% for the Standard & Poor’s 500 and 0.22% for the Nasdaq.
Dovish comments from Federal Reserve officials on Monday supported sovereigns and pushed yields lower.
The restrictive level reached by yields on American bonds could in fact be enough to put pressure on the economy, which would allow the Fed not to raise its rates again.
Caution remains in order, because the American inflation expected on Thursday may still surprise on the rise, while the impact on the markets of the Israeli-Palestinian conflict remains uncertain.
“A war is by nature inflationary and most often results in rising prices of raw materials,” recalls François Rimeu, strategist at La Française AM. “The events of the weekend could thus make the mission of central bankers even more difficult.”
In terms of values, Elis gained 4.24% after BWGI (BW Gestão de Investimentos), a Brazilian company, took a stake of around 6% in its capital, via the repurchase of shares held by Crédit Agricole Assurances.
The energy sector fell 0.31% after rising sharply on Monday, while oil prices eroded.
(Written by Corentin Chappron, edited by Kate Entringer)
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