(Paris) European markets continued their rebound Wednesday at midday, erasing for some the losses of the day before due to inflation fears and Wall Street was preparing to follow suit.
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Around 7:30 a.m. Paris thus climbed 0.86%, as did London (+ 1.19%), Frankfurt (+ 1.38%) and Milan (+ 1.22%).
On Wall Street, the opening was also announced in the green according to the futures contracts on the main American indices: the Dow Jones took 0.19%, the S&P 500 rose by 0.38% and the NASDAQ climbed by 0.61%.
If the American Central Bank insists that it is still too early to think about raising rates, the former boss of the Fed and now Secretary of the Treasury, Janet Yellen, ruled on Tuesday that it may be necessary to “increase a little interest rates so that the economy does not overheat ”.
For Michael Hewson, analyst at CMC Markets UK, “The economic data can only improve, which we knew already last week, and that anything that stems from this improvement is likely to translate into a tightening of rates. monetary policy, in one form or another, over time. The only question being when ”.
Feared by investors, inflation is there in Brazil, where the Central Bank should once again raise its key rate to 3.5% (+0.75 point), according to analysts.
In Switzerland, inflation started to rise again in April, with consumer prices rising 0.3% year on year, against a backdrop of a rebound in petroleum products.
After variations the day before, the US ten-year borrowing rate stabilized at 1.61% on Wednesday.
On the health front, in the United States, Joe Biden has set a new goal of at least one injection of vaccine for 70% of adults by July 4.
India, for its part, has passed the milestone of 20 million recorded cases and released 6.7 billion dollars to counter the second wave. As rich G7 countries discuss on Wednesday how to ensure a more equitable distribution of COVID-19 vaccines.
In terms of indicators, in France activity in the private sector progressed well in April, a first since the summer of 2020.
In Germany, auto market activity rebounded sharply in April year on year, but car sales remain weak due to continued health restrictions.
In the United States, job creation in the private sector in April is also expected.
Investors will also follow the presentation by the European Commission in the middle of the day of its industrial strategy for Europe.
Banking progress
Bank stocks were sought after Wednesday, seen as less volatile than technology stocks.
In Paris, BNP Paribas was up 2.32% to 54.28 euros. Societe Generale rose 1.27% to 23.50 euros and Crédit Agricole took 1.32% to 12.92 euros.
In London, HSBC climbed 1.94% to 450 pence and Lloyds climbed 1.07% to 45.53 pence.
In Frankfurt, Deutsche Bank rose 1.76% to 11.23 euros.
Well oriented mining and oil companies
In Paris, ArcelorMittal jumped 3.02% to 25.44 euros, leading Eramet, up 4.35% to 63.60 euros. In London, BHP rose 3.23% to 22.68 euros.
Same trend on the oil side, Total increasing 2.14% to 38.47 euros in Paris, BP 1.21% to 314 pence in London and Eni 1.23% to 10.22 euros in Milan.
The commodities market is igniting, according to Mr. Hewson, evidenced by a Bloomberg indicator at its highest since 2011, “which raises concerns about rising prices and the overheating of the US economy.”
On the oil, euro and bitcoin side
Crude oil prices were advancing towards prices more seen since March.
By 7:30 a.m., a barrel of North Sea Brent for July delivery was up 0.99% to $ 69.57.
In New York, WTI’s US barrel for June gained 1.08% to $ 66.40.
At the same time, the euro stabilized against the greenback, at $ 1.2016.
Bitcoin was up 1.22% to $ 55,435.
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