PARIS (Reuters) – The main European stock markets progressed on Tuesday morning with a further easing in the bond market, but the wait-and-see context linked to Wednesday’s decisions by the American Federal Reserve and the publication of the quarterly results of the American new technology giants limits winnings.

In Paris, the CAC 40 rose 0.24% to 7,659.52 points around 08:55 GMT, after reaching a new record at 7,670.23 points. In London, the FTSE 100 rose 0.48% and in Frankfurt, the Dax gained 0.21%.

The EuroStoxx 50 index increased by 0.28% and the FTSEurofirst 300 by 0.36%. The Stoxx 600, which reached a new two-year high, gained 0.32%, the fifth consecutive session of gains.

Futures contracts on Wall Street predict a drop of 0.15% for the Dow Jones and virtual stability for the Standard & Poor’s 500 and the Nasdaq the day after a cautiously rising session.

The positive trend is fueled by a further decline in bond yields in the United States and Europe as the Fed begins a two-day monetary policy meeting on Tuesday, which should immediately lead to a status quo on its interest rates. their current level.

Traders, who are betting with a probability of 47% on a Fed rate cut in March, according to the CME Group’s FedWatch barometer, hope that the Fed will give indications on the timetable for its monetary easing widely anticipated by the markets. The latter see federal funds rates falling by 134 basis points this year.

In the euro zone, traders predict with a probability of 75% that the European Central Bank (ECB) will lower its rates by 25 basis points from April.

In addition to monetary policy, nearly 20% of S&P-500 companies are due to publish their quarterly accounts this week, starting with Microsoft expected after Wall Street closes.

In Europe, corporate news is also driving discussions, including Diageo, the world number one in spirits, which fell 3.37% after announcing a turnover lower than expectations for its first half. tax. In its wake, Rémy Cointreau dropped 2.03%.

Still on the CAC 40, Renault rose 0.46% the day after the announcement of the cancellation of the IPO of Ampère, a central pillar of its transformation strategy. According to Berenberg analysts, in a context of uncertainties over electric subsidies and price wars, Renault’s decision can be “ultimately considered positive”.

In London, the advertising group WPP jumped 4.09% thanks to the publication of a turnover for 2023, excluding re-invoicing costs, up 0.9% and a forecast of a slight increase in its operating profit margin for 2024.

In Madrid, BBVA gained 1.94% in reaction to a 32% jump in its net profit for the fourth quarter.

(Writing by Claude Chendjou, edited by Kate Entringer)

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