Washington (AWP/AFP) – World markets finished in green on Wednesday and the bond rates relaxed in the face of the prospect of a monetary relaxation of the American Central Bank (FED) after American inflation in accordance with expectations.
In Europe, the Frankfurt Stock Exchange ended up 0.67%, London won 0.19%, Paris increased by 0.66%and Milan took 0.60%. In Zurich, the SMI won 0.78%.
At Wall Street, the NASDAQ index (+0.14%) and the S&P 500 (+0.32%) both exceeded their highest, reaching 21,713,14 and 6,466.58 points respectively. The Dow Jones increased by 1.04%.
The global MSCI World actions index has also reached a new historic record.
“There are currently a lot of momentum and euphoria,” sums up with AFP Peter Cardillo, of Spartan Capital Securities.
“The global feeling is positive on the markets”, thanks to “three elements”: the extension of 90 days of the commercial break between China and the United States, the meeting to come on Friday between Donald Trump and Vladimir Putin and the anticipation of a drop in the Fed rates in September, sums up Frédéric Rozier, portfolio manager at Mirabaud.
It is this last point in particular which feeds market optimism, reassured the day after the publication of an American inflation index (ICC) in accordance with market expectations for the month of July.
The CPI index has reduced fears related to the impact of customs duties on the price increase, and therefore pushed investors to strengthen their bet on a drop in interest rates to come in September from the American central bank, one of the two missions is to control inflation and bring it back to 2%.
According to the monitoring tool of CME, a very large majority of players now anticipate a drop in rates by a quarter of percentage point in September, against a little more than half a month earlier.
On Wednesday, the Minister of Finance Scott Bessent even was in favor of a decrease of half a point in these rates at the end of the next Fed meeting.
Investors are now waiting for the publication of an inflation index on the producer side (PPI) on Thursday, then retail sales and a consumer confidence index on Friday.
These data “should allow investors to refine their forecasts concerning future rate reductions”, underlines in a note Sam Stovall, of CFRA.
On the bond market, the yield of the American loan at ten years fell sharply to 4.24%, against 4.29% at the end on Tuesday. At two years, the deadline most sensitive to monetary policy developments, it was 3.68% after 3.73% the day before.
In Europe, the Bund, the German loan rate at ten years was 2.68% against 2.74% on Tuesday.
With rate drops, the dollar flexed compared to the single currency, losing 0.26% to 1.1705 dollars for one euro.
Bullish à Wall Street ___
The Bullish entry of cryptocurrency exchanges made a noticed entry on the New York Stock Exchange on Wednesday. The initial price of the action has been set at $ 37. The company finished the session at $ 69.97.
Glanbia takes off ___
The Irish group specializing in Glanbia nutrition ended up 15.83% in Dublin after publishing a turnover up 6% on the first half of the year compared to the same period last year, at $ 1.93 billion.
Cava, in net fold ___
The Mediterranean Inspiration Restoration chain Cava fell (-16.63% to $ 70.45) after having revised its forecasts downwards due to disappointing growth in the second quarter.
Vestas ends up ___
The Danish manufacturer of Vestas wind turbines, one of the main European players in the sector, sold 1.37% to Copenhagen.
He gave a net profit of 34 million euros in the second quarter and maintains his forecasts for the year despite the uncertainties related to customs duties, according to his quarterly report published on Wednesday.
Elsewhere at the European side, Orsted fell 2.85% and Siemens Energy by 5.03%.
AFP/Rp
