(New York) Optimism reigned Monday in global stock markets, still driven by a strong corporate earnings season, ahead of the US Federal Reserve meeting.
European markets have made clear progress: from Paris (+ 0.92%) to Frankfurt (+ 0.75%) via London (+ 0.71%) and Milan (+ 1.23%), Paris and Frankfurt approaching their respective absolute records.
On Wall Street, the three main indices concluded on modest increases, but at new highs: the Dow Jones gained 0.26%, the broad S & P500 index 0.18%, and the technology-colored index NASDAQ climbed 0.63%.
All the markets had a solid month of October, making it possible to forget the turbulence of the re-entry linked to the acceleration of inflation and the slowdown in economic growth.
This week, investors are turning to central bank meetings including the US Federal Reserve (Fed).
“The Fed is not going to raise rates, but its meeting should end with the announcement of a plan to reduce asset purchases,” noted Patrick O’Hare of Briefing.com.
The Fed has already largely prepared the markets for this announcement and explained that its goal is to gradually reduce its asset buybacks from the current $ 120 billion per month to zero by the middle of 2022.
Investors will then monitor the monetary meetings of the Central Banks of England and Australia.
On the bond market, sovereign debt interest rates continue to tighten after rising sharply the previous week.
In addition, “US economic data continued to show resilience,” said Michael Hewson, analyst at CMC Markets UK.
The growth of the manufacturing sector in the United States, as expected, slowed in October, still penalized by supply difficulties and lack of personnel, according to the ISM index.
Demand remains strong from American consumers, despite rising prices.
Washington and EU bury the hatchet
Washington and Brussels reached an agreement on Saturday to lift additional tariffs on European imports of steel and aluminum.
The end of this conflict benefited the values of the sector. In Frankfurt, Thyssenkrupp took 2.36% to 9.20 euros and Salzgitter 1.89% to 32.42 euros. In Paris, ArcelorMittal gained 2.01% to 29.92 euros.
Brussels also lifted additional retaliatory measures to be applied from 1er December, including those on motorcycles, allowing Harley-Davidson to jump 9.07% to 39.80 dollars.
The automobile is picking up speed
The European automotive sector was in demand, with Renault (+ 2.16% to 31.73 euros) and Stellantis (+ 1.06% to 17.42 euros) in Paris, but also Daimler (+ 1.45% to 86, 98 euros) or BMW (+ 0.19% to 88.28 euros) in Frankfurt.
In New York, Tesla soared 8.52% to $ 1,208.92, a record high, for the electric vehicle manufacturer, in the wake of the United Nations conference on climate change in Glasgow (COP26), according to Patrick O’Hare.
Doubt on Darktrace
Shares of cybersecurity firm Darktrace fell 15.08% to 682 pence in London. It suffers from the end of a period of “lock up” during which the shareholders undertake not to sell their securities, which generates the fear of a massive sale of securities. An analyst also expressed doubts last week about the valuation of the share.
On the oil, euro and bitcoin side
Oil prices rose slightly at the start of a week which will see OPEC + members, member countries of the Organization of Petroleum Exporting Countries and their allies, meet. A renewal of their strategy of limited increase in production is expected by the market.
A barrel of Brent North Sea for delivery in January, which is the first day of listing, gained 1.18% to $ 84.71.
In New York, a barrel of West Texas Intermediate (WTI) for December delivery rose 0.57% to $ 84.05.
The euro rose 0.42% against the greenback to $ 1.1606 around 4:40 p.m.
Bitcoin dropped 0.41% at $ 60,726.