Nevertheless,
Green fire european markets after:
Paris finished up 0.40%, Frankfurt of 0.29%and Milan by 0.69%. However, London ends up 0.13%, touching a new record in closing as in session. However, In Zurich, the SMI increased by 0.19%. Furthermore,
Global markets benefit from the optimism of investors after the intervention of the president of the federal reserve (Fed) during the Jackson Hole central banker symposium. In addition, which opens the door to a drop in institution’s rates.
The president of the Fed Jerome Powell was open on Friday open to a next drop in interest rates. Moreover, a relaxation claimed at COR and CRI by Donald Trump who does not loosen the pressure on the American central bankers.
A “rapid” degradation of the American labor market is not to be excluded. Moreover, could “justify” a relaxation of monetary policy, and therefore of interest rates, warned the Fed green fire european markets after boss from the conference of central bankers in Jackson Hole, in Wyoming in the United States.
“We also feel in his speech a clear prioritization of the goal of full employment (of the Fed) compared to that of price stability because undoubtedly for the first time. Consequently, Jerome Powell explicitly indicated that customs duties will only have a passing effect on inflation,” comments Bastien Drut, responsible for strategy and economic studies at CPR AM.
Wall Street hosted Mr. Meanwhile, Powell’s speech with fanfare, the Dow Jones taking 2.08%, the NASDAQ 2.06% index and the widen S&P 5.68% index around 3.45pm.
Europe also took advantage of the ambient optimism, the Paris Stock Exchange finishing up 0.40%, Frankfurt winning 0.29%and Milan 0.69%. London closed up 0.13%, affecting a new record in fence as in session. In Zurich, the SMI won 0.19%.
The Stoxx Europe 600 index, which brings together the 600 largest green fire european markets after stock market capitalizations on the continent, ended up 0.40%, bordering on its absolute record in session and at the end.
A possible drop in rate of the Fed constitutes “good news for the equity markets by providing more liquidity. ” explains Grégoire Kounowski, investment advisor at Norman K.
The yields of American treasury bills dropped after Mr. Powell’s intervention. The ten -year yield was 4.24% around 3:45 p.m. GMT, compared to 4.33% the day before. At two years, the deadline most sensitive to monetary policy, the rate was 3.68%, against 3.79% the day before.
The dollar also plunged against the main other currencies, dropping 1.00% in the face of the single currency, at 1.1723 dollars for one euro, lower rates being likely to lead the course of a currency.
Faced with the fall of the dollar, a competing refuge value, gold jumped 1.18%, to 3,378.21 dollars.
The intervention of the green fire european markets after boss of the Fed “was interpreted by the market only in a sense”. that of a drop in imminent rates, “while the message is much more nuanced than what the reaction of the short -term market suggests”, however tempers Mr. Kounowski.
Mr. Powell has added that the American central bank is in a “delicate situation” because the new customs duties set. up by the American executive begin at the same time to affect the prices paid by consumers at the risk of rekindling inflation.
Optimism around Ukraine falls
Despite diplomatic efforts made in recent weeks around the Ukrainian file. the optimism of investors, who hoped for a cease-fire agreement between kyiv and Moscow in Ukraine, comes up against blockages.
Donald Trump. who struggles to bring it as he promised the Ukrainian president, Volodymyr Zelensky, and his Russian counterpart, Vladimir Putin, launched on Friday that it was equivalent to mixing green fire european markets after “oil and vinegar”.
The head of Russian diplomacy, Sergei Lavrov, accused Mr. Zelensky on Friday of the blocking in the organization of a possible meeting with Vladimir Putin. in the aftermath of similar criticism of the Ukrainian leader to Moscow. He said there was, at this stage, “no planned meeting” between the two leaders.
The perspectives of peace move away, the values of European defense have taken up. In Frankfurt, Rheinmetall ended up 0.87%, Thyssenkrupp by 0.57%and Hensoldt of 3.65%. SAAB won 1.81% in Stockholm and Leonardo 0.68% in Milan. In Paris, Thales took 0.43%.
Green fire european markets after
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