(Reuters) – Wall Street is expected to rise and European stock markets advance at mid-session on Tuesday, with accommodating comments from Federal Reserve (Fed) officials supporting market sentiment despite a context of uncertainty linked to the conflict in the Middle East. East and before the publication of key indicators.
New York index futures signal Wall Street opening up 0.28% for the Dow Jones, 0.27% for the Standard & Poor’s-500 and 0.32% for the Nasdaq.
In Paris, the CAC 40 gained 1.6% to 7,133.68 around 10:54 GMT. In Frankfurt, the Dax rose by 1.74% and in London, the FTSE by 1.53%.
The pan-European FTSEurofirst 300 index gained 1.52%, the EuroStoxx 50 of the euro zone 1.78% and the Stoxx 600 1.55%, its strongest one-day increase in almost four weeks.
If the clashes between the Israeli army and Palestinian Hamas fighters triggered a movement towards safe haven values on Monday and caused European markets to fall, on Tuesday, comments deemed accommodating by officials of the American Central Bank on rates eased sentiment. investors.
Dallas Fed President Lorie Logan explained Monday that rising Treasury yields and tighter financial conditions may be enough to do some or all of the central bank’s job, while Fed Vice President , Philip Jefferson, argued for a cautious approach to the cost of money.
US rate yields are also falling sharply on Tuesday, which is also helping to support markets ahead of the release of US inflation data and the minutes of the latest Fed meeting later this week.
VALUES TO FOLLOW AT WALL STREET
Wall Street is expected to rise, following comments from Federal Reserve officials, although caution is required in the context of escalating tensions in the Middle East.
VALUES IN EUROPE
Elis gains 4.1% after BWGI (BW Gestão de Investimentos), a Brazilian company, took a stake of around 6% in its capital.
On the Stoxx, all major sectors are up, with mining (3%), automobiles (2.7%) and travel and leisure (2.5%) indices leading the gains.
The energy sector fell 0.32% after rising sharply on Monday, while oil prices eroded.
Strong demand for sovereign bonds ran out of steam after a rush on safe-haven assets on Monday, against a backdrop of geopolitical tensions.
The German ten-year yield gained around 3 basis points to 2.79% and that of the two-year rate gained almost 5 basis points to 3.078%.
US bond markets are falling after comments from Fed officials on interest rates. The ten-year lost 11 basis points to 4.66%, and the two-year lost almost 9 basis points to 4.99%.
The dollar hesitated on Tuesday, in a context of caution between comments from Fed officials and fears about the Israel-Hamas conflict.
The dollar fell (-0.2%) against a basket of reference currencies, while the euro gained 0.28% to 1.0595 dollars.
Oil prices fell on Tuesday, after the sharp rise the day before, with markets worried about possible supply tensions.
Brent dropped 0.51% to 87.7 dollars per barrel, American light crude (West Texas Intermediate, WTI) losing 0.53% to 85.92 dollars CLc1.
“If reports of Iranian involvement prove true, prices would be strengthened as we expect the United States to more strictly enforce oil sanctions against Iran “This would further tighten an already tight market,” ING analysts said.
(Writing by Augustin Turpin and Diana Mandia, editing by Kate Entringer)
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