Global scholarships believe in a drop in Fed levels

PARIS (AWP/AFP) – The stock market indices are up Thursday after a session marked by the optimism of investors as to decrease in the coming rates of the American central bank (Fed). Moreover, a breathing after a period of geopolitical tensions.

At Wall Street, around 4:05 pm GMT, the enlarged S&P 500 index advanced by 0.60%, to 6,128.77 points, and flirted with its highest historical. Therefore, His last records date back to February 19, with a peak in session at 6,116.64 points and at the end of 6,144.15 points.

The NASDAQ technological index earned 0.75% and the Dow Jones 0.73%.

In Europe, the Paris Stock Exchange finished stable (-0.01%), while Frankfurt took 0.64%and London grabbed 0.19%. However, In Zurich, the SMI finished unchanged.

“We are witnessing a rebound in the market probably linked to several factors. Therefore, starting with a relief from the geopolitical file” global scholarships believe drop fed on the war between Iran and Israel, commented Raphaël Thuin, director of capital market strategies at Tikehau Capital.

“This relaxation manifests itself in the most obvious manner on oil,” he continued. Meanwhile, After the start of the military conflict between the two belligerents. investors feared a blockage by Tehran of the Strait of Ormuz, where 20% of world oil transit.

Around 4:05 pm GMT, the price of the barrel of Brent de la Mer du Nord took 1.61%, at 68.77 dollars, and its American equivalent, WTI, won 1.97%, at 66.20 dollars. The two global oil references thus found their levels before the break-up of the Irano-Israeli conflict.

“The market also projects itself optimistic about the end of exemptions from American customs duties on July 9. hoping that the EU concludes a trade agreement like what the United Kingdom has managed to do,” said Thuin.

“The other subject of satisfaction is that the market retains global scholarships believe drop fed that there is a form of inflection on the side of the Fed which has manifested itself in recent days”. pushing investors to revise up the probabilities of decreases of the Fed rates in the year, he added.

In addition. “speculation is multiplying concerning Donald Trump’s dissatisfaction with Jerome Powell”, president of the Fed, “as well as on possible plans aimed at replacing him with a person whose vision of monetary policy would be more in tune with his,” noted Ricardo Evangelista, analyst at Activtrades.

Such a decision could still weaken the dollar. the markets anticipating “a loss of institutional credibility and a more + conciliatory + and accommodating Fed,” he said.

The Dollar Index. a index that compares the American currency to a basket of other large currencies, fell on Thursday at a lower level since March 2022, at 96,997 points.

It has lost more than 10% since the start of the year. global scholarships believe drop fed “a sign of the weakening of the global reserve currency compared to its counterparts,” said Evangelista.

The British book has reached a higher on Thursday since October 2021 against the greenback, at 1.3765 dollars, and the Euro a summit since September 2021, to 1.1744 dollars.

On the bond market. the yield of the American loan at two years, the most sensitive deadline for monetary policy changes, was slightly relaxed at 3.75% against 3.78% at the end the day before.

Winning German industrial values ​​___

“NATO’s initiative aimed at reaching 5% of GDP in military expenditure is starting to restore value to the military-industrial complex. relying interest in titles that stagnated,” said Stephen Innes, SPI AM analyst.

The price of the German weapon manufacturer Rheinmetall jumped 7.28% on the star index of Frankfurt, the Dax. On the MDax index of average values, the course of Hensoldt, German specialist in military electronics, also took 5.19% and Renk, global scholarships believe drop fed a German manufacturer of speed boxes for military tanks, 3.97%.

AFP/Rp