(Paris) Stock markets continued to rise on Wednesday despite not only record inflation in the euro zone, which is raising high expectations on the eve of the European Central Bank meeting.
Posted at 7:49
Updated at 7:50 a.m.
European indices continued to advance in Paris (+0.53%) Frankfurt (+0.40%), London (+0.90%) and Milan (+0.95%), around 7:20 a.m.
After three consecutive sessions of rebound, Wall Street was to continue its momentum: futures contracts on the main indices posted an increase of 0.74% on the S&P 500 and 1.50% on the NASDAQ index, with strong coloring. technological.
After a month of January agitated by fears related to the coming monetary tightening of the American central bank, the stock markets rebounded this week, benefiting from purchases on the cheap and a posture perceived as less aggressive by several officials of the US Federal Reserve (Fed).
But some analysts called for caution, unable to comment on the duration of this surge in a context deemed delicate on the monetary level as geopolitics with the crisis in Ukraine.
The inflation rate in the euro zone broke a new record in January, at 5.1% over one year, a historic level which far exceeds the consensus and inflation expectations of the European Central Bank (ECB).
Soaring inflation “sets the bar high enough” for the ECB, which will hold its first meeting of the year on Thursday, reacts Alexandre Baradez, analyst at IG France.
Investors wonder what monetary attitude the institution will adopt in the face of this surge in prices and whether its inflation forecasts will be raised for 2022.
Unlike in the United States, where the Fed almost implemented a rate hike in March without setting any precise outlines, rate hikes are considered unlikely this year in the euro zone.
“However, uncertainty remains high, particularly with regard to the outlook for inflation and medium-term growth,” writes François Rimeu of La Française AM.
Investors will be watching the monthly private sector job creation report for January (ADP Survey) in the afternoon as many jobs remain unfilled in the United States, ahead of Facebook’s earnings release expected in the evening.
Google at the top
Alphabet, Google’s parent company, soared more than 10% in pre-session trading, after results well above expectations ($76 billion in annual net profit, double 2020). The company also announced a split in its share price, which would exceed $3,000 at the opening on Wednesday if the rise is confirmed.
Vodafone continues to rebound
British telephony group Vodafone rose 2.66% to 131.36 pence after announcing on Wednesday that its sales had continued to rebound for its staggered third quarter and gave pledges to its shareholders after press reports on a capital increase of activist investor Cevian.
health in shape
The world number one in insulin, the Danish Novo Nordisk recorded in 2021 a net profit up 13%. For 2022, the laboratory expects a jump in sales of 6 to 10%. The stock rose 3.68% to 695.9 Danish kroner.
The Swiss pharmaceutical giant Novartis has almost tripled its annual net profit in 2021, to 24 billion dollars, it announced on Wednesday, boosted by the sale of its stake in its competitor Roche. Around 7 a.m., the title fell 3.02% to 78.65 Swiss francs, however, affected by sales of its pharmaceutical division slightly below forecasts in the fourth quarter.
Slight decline in oil, rise in the euro
The market having its eyes on the meeting of the Organization of the Petroleum Exporting Countries and their allies (OPEC+), which should lead to a slight opening of the floodgates.
Around 6:55 a.m., the price of a barrel of Brent from the North Sea for delivery in April fell 0.36% to 88.43 dollars.
In New York, a barrel of West Texas Intermediate (WTI) for March delivery dropped 0.14% to 88.09 dollars.
The euro gained 0.40% to 1.1318 dollars.
Bitcoin fell 0.72% to $38,534.