(New York) Global markets rose sharply on Thursday, reassured by the possibility of less than expected policy tightening by the US Federal Reserve (Fed) and buoyed by corporate results in the retail sector.
Updated yesterday at 5:08 p.m.
European indices ended sharply higher, although volumes were reduced, with Thursday being a public holiday in some countries. Paris took 1.78%, Frankfurt 1.59%, Milan 1.22% and London 0.56%.
On Wall Street, the Dow Jones gained 1.61%, the NASDAQ index, 2.68%, and the broader S&P 500 index, 1.99%.
Investors remained seduced by the minutes of the last meeting of the Fed, published on Wednesday.
“The Fed has committed to only half-point rate hikes until the Jackson Hole symposium” in August, which “eliminates the risk of aggressive tightening in the short term” with increases of three-quarters of a point that investors feared, summarizes Edward Moya, an analyst at Oanda.
The minutes also showed that the scenario, emerging this week, of a central bank that could slow down from September in its monetary tightening so as not to overwhelm American economic activity, was realistic, according to Joe Manimbo, from Western Union.
However, enthusiasm remains measured as global economic activity continues to show signs of weakness. In Asia, the Chinese Prime Minister estimated that his country’s economy was at a “critical moment”, in the grip of difficulties “even greater than in 2020” in the face of COVID-19.
Distribution gives impetus
After disappointing investors with publications from Walmart or Target, the distribution sector has brought some good news.
Despite “macroeconomic pressures,” “our customers continued to buy,” said Jeff Gennette, CEO of Macy’s (+19.31%), which exceeded analysts’ expectations.
the decorative items brand Williams Sonoma (+13.06%) or the low-cost distributor Dollar General (+13.71%), which even raised its forecasts for the year, also did better than expected .
A buoyant wind suddenly blew across the entire retail sector, benefiting Nordstrom (+5.26%), which had also exceeded expectations the day before, but also Walmart (+2.13%) , Target (+4.33%) or Home Depot (+3.15%).
In London, distribution values jumped thanks to a 15 billion aid package for the poorest households, including Ocado (+11.54%), B & M (+7.27%), Next ( +6.43%) and Marks & Spencer (+7.90%).
Elsewhere in Europe, Inditex (+5.15%) also benefited from this movement.
Musk puts a coin back in the machine
Twitter was also sought (+6.35% to 39.52 dollars), after the announcement on Wednesday that Elon Musk had raised the share of direct contribution he was putting on the table to buy the social network, to 33.5 billion dollars, against 21 originally planned.
The entrepreneur thus renounced the entire loan of 12.5 billion dollars guaranteed by Tesla shares that he was initially to subscribe, which earned a rebound in the title of the manufacturer of electric vehicles (+7.43 % at $707.73).
Energy under pressure in London
British energy companies like Centrica (-7.24%) or SSE (-4.61%) unscrewed after the announcement that the government was evaluating the possibility of putting them to work in the face of the cost of living crisis, even if they escape for the moment an exceptional tax on the profits of the oil sector which should make it possible to obtain five billion pounds. The shares of these companies were supported on Thursday by oil prices, such as Shell (+1.07%).
Oil goes up, the ruble goes down
Oil prices jumped on Thursday, a few hours before a holiday weekend that will mark the start of the travel season in the United States and a rise in demand for fuel.
The price of a barrel of Brent North Sea oil for July delivery gained 2.95%, to close at $117.40.
As for the barrel of American West Texas Intermediate (WTI), also for July, it gleaned 3.40%, to 114.09 dollars.
The euro rose 0.44% to $1.0729. The Russian ruble, which hit 55.31 rubles to the dollar on Wednesday, a seven-year high, fell (-6.5% to 64.60 rubles) as the Russian central bank lowered its main rate by 14% at 11%.
Bitcoin was down 0.91% at $29,454.