(New York) Global stock markets rose on Tuesday, boosted by a salvo of corporate results and a sharp easing of bond market rates which reassured investors in the run-up to the meeting of the American central bank (Fed) in november.
Posted yesterday at 5:39 p.m.
In Europe, the markets experienced a jump when Wall Street woke up. Paris closed up 1.94%, Frankfurt 0.94%, Milan 1.40%. In London, the main FTSE 100 index ended flat (-0.01%), but the broader FTSE 250 index gained 2.85%.
“We are still in feverish markets compared to inflation and central banks”, summarizes Nicolas Budin, head of equity management at Myria AM.
Investors have their sights set on the next meeting of the US Federal Reserve (Fed) monetary policy committee, on 1er and November 2, which should once again raise its key rates, continuing its monetary tightening to deal with inflation.
In the bond market, yields on European and US government debt fell 10 to 20 basis points on Tuesday from Monday’s close.
The rate of the 10-year American loan has been around “4% for a few days”, notes Nicolas Budin, while “at the end of July, we were at 2.5%”.
Among today’s results
Coca-Cola has revised its forecast for 2022 upwards after beating expectations in the third quarter despite the rising dollar. The group’s share price rose 2.47%.
US automaker General Motors (GM) maintained its full-year forecast despite a “difficult” environment as demand for its vehicles remained “solid”. Its title gained 3.70%.
Shares of Swiss group Logitech soared more than 12% in Zurich, despite falling but better-than-expected quarterly figures.
Industrial giant Air Liquide ended up 6.67% after confirming its annual targets following a 41.3% surge in third-quarter revenue to 8.3 billion euros.
On the other hand, Alphabet (Google) disappointed with an increase in its lowest turnover since 2013. The title dropped 5.69% in electronic trading after the close.
Variable time on banks
Banking giant HSBC fell 6.75% as investors worried about the prospect of credit losses after a large provision by the bank on recession risks and rising interest rates.
Conversely, the results of UBS were hailed and the stock rose by more than 8%. The Swiss bank published a net profit down 24% for the third quarter, but better than expected by analysts.
On the side of currencies and commodities
The pound soared against the euro and the dollar on Tuesday, boosted by the inauguration of new Prime Minister Rishi Sunak, whom the markets trust to help the United Kingdom face the current economic crisis. Around 7 p.m. GMT, the pound rose 1.67% to 1.1467 dollars.
The euro also jumped against the dollar, in response to a weak greenback, while investors expect an upcoming rate hike from the European Central Bank (ECB). The euro rose 0.86% to $0.9959.
Bitcoin climbed 1.30% to $19,6334.
Oil prices ended higher, thanks to indicators showing that demand for refined products remains high, amid tensions between the United States and Saudi Arabia.
The price of Brent crude from the North Sea for December delivery rose 0.27% to close at $93.52. That of the barrel of American West Texas Intermediate (WTI), also with maturity in December, took 0.87%, to 85.32 dollars.