PARIS (Reuters) – The main European stock markets are moving higher on Thursday morning with a further decline in bond yields, investors showing confidence before the monthly figures for American inflation and after the “minutes” from the Federal Reserve (Fed) which fuel the scenario of an end to the rise in interest rates.
In Paris, the CAC 40 rose 0.26% to 7,149.94 points around 08:05 GMT. In London, the FTSE 100 rose 0.34% and in Frankfurt, the Dax rose 0.36%.
The EuroStoxx 50 index increased by 0.39% and the FTSEurofirst 300 by 0.33%. The Stoxx 600 rose 0.43% to a three-week high, thanks in particular to the basic resources (+1.19%) and automobile (+0.54%) sectors, at the top of the sectoral indices .
Futures contracts on Wall Street predict an increase of 0.15% for the Dow Jones, 0.22% for the Standard & Poor’s 500 and 0.26% for the Nasdaq the day after a session in the green, already driven by an easing on the bond market after the report of the last monetary policy meeting of the Fed.
These “minutes” show that Fed officials considered that too tight a monetary tightening could represent a risk when they opted for the status quo last month.
At the same time, some Fed officials, such as Governor Christopher Waller, believe that the US central bank can wait and watch what happens with interest rates as conditions in financial markets tighten.
Traders expect a pause on Fed rates at the November and December meetings.
On the bond market, the yield on ten-year Treasuries fell by around 2.5 basis points, to 4.5789 after having fallen by 7.6 points the day before. Its German equivalent is stable, at 2.724%, after a decline of 6.5 points on Wednesday.
An intervention by Christine Lagarde, the president of the European Central Bank (ECB) is planned for the day as part of a meeting of G20 finance ministers and central bankers in Morocco.
Investors are also awaiting consumer price figures in the United States at 12:30 GMT.
In terms of values, LVMH is still in the red, the world number one in luxury struggling to recover from its plunge the day before linked to the publication of its results.
Publicis (+3.92%), on the contrary, benefits from the increase in its annual forecasts after strong organic growth in its net income in the third quarter.
On the SBF 120, Orpea fell 10.97% after a downward adjustment of its annual profit.
Elsewhere in Europe, Easyjet lost 3.64% after its results and forecasts. The air transport group also announced its intention to order 157 aircraft from Airbus (+0.57%) and an option on 100 other aircraft.
The leading European sugar producer Südzucker gained 1.15% thanks to a quarterly profit more than doubled.
(Writing by Claude Chendjou, edited by Kate Entringer)
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