by Blandine Henault

PARIS (Reuters) – Wall Street is expected to rise on Thursday and European stock markets rise mid-session in a context of widespread appetite for risky assets after the status quo of monetary policy from the Federal Reserve (Fed), which is in parallel falling bond yields and the dollar.

Futures on New York indices signal an opening up 0.36% for the Dow Jones, 0.58% for the S&P 500 and 0.91% for the Nasdaq.

In Paris, the CAC 40 rose 1.86% to 7,061.58 around 11:40 GMT. In Frankfurt, the Dax rose 1.56% and in London, the FTSE gained 1.27%.

The pan-European FTSEurofirst 300 index gained 1.37%, the Eurozone EuroStoxx 50 gained 1.84% and the Stoxx 600 rose 1.54%.

As expected, the Fed left the target for “fed funds” rates at 5.25%-5.50% on Wednesday evening after already a pause decided during its previous meeting in September, fueling expectations that the central bank American is done with rate hikes.

“The FOMC (Monetary Policy Committee, Editor’s note) retained a restrictive bias in its statement, suggesting that it could increase the federal funds range by 25 basis points at the next meeting. However, the characterization of the data and the “Jerome Powell’s ‘dovish’ attitude during the press conference indicates that the FOMC thinks it is finished raising rates,” Barclays analysts observe in a note.

Investors are now looking to the Bank of England (BoE) which will announce its rate decision at 12:00 GMT. A majority of economists polled by Reuters believe that the BoE will also opt for the status quo, keeping its key rate at 5.25%. VALUES TO FOLLOW AT WALL STREET

Growth stocks like MICROSOFT, NVIDIA and TESLA rose 0.8% to 2.2% in pre-market trading after the Fed’s decision to leave its key rates unchanged, which led to a clear easing of bond yields. .

APPLE, the world’s largest capitalization, will publish its quarterly results this Thursday after Wall Street closes.

RATE

US bond yields continue to plummet after the Fed’s announcements.

The ten-year Treasuries rate dropped eight basis points, to 4.7029% after having already lost eight points the day before.

The yield on two-year US government bonds lost two basis points, to 4.956% after falling ten points on Thursday.

In the process, yields in Europe are losing ground: the ten-year German Bund rate, the benchmark for the euro zone, has lost more than five points to 2.694%.

The yield on the British Gilt with the same maturity lost almost ten basis points, to 4.387% before the BoE announcements.

CHANGES

Like yields, the dollar is penalized by expectations of an imminent end to monetary tightening in the United States. It lost 0.73% against a basket of reference currencies.

The euro took advantage of this to return to more than 1.06 dollars while the pound sterling advanced by 0.3% to 1.219 dollars before the BoE announcements.

VALUES IN EUROPE

In Paris, Atos climbed 13.51% after the announcement of a stake of nearly 10% by the company Onepoint in the capital of the group which is currently undergoing restructuring.

All sectors are climbing in Europe but those of real estate (+6.27%) and technology (+3.68%) are taking full advantage of expectations of the end of monetary tightening and the easing of bond yields.

This is the largest increase during the session for the real estate sector since the beginning of February.

OIL

Crude prices are increasing after three consecutive sessions of decline, driven by the renewed appetite for risky assets following the Fed’s announcements.

The barrel of Brent rose 1.45% to 85.86 dollars and that of American light crude (WTI) gained 1.54% to 81.68 dollars.

(Written by Blandine Hénault, edited by Kate Entringer)

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