(Paris) European stock markets rebounded Tuesday after the air hole of the previous days, while Wall Street was moving upward, satisfied with the words of the boss of the Fed.
Updated at 13:11 yesterday
On the New York Stock Exchange, after starting slightly lower, the Dow Jones gained 0.08%, the S&P 500 0.38% and the NASDAQ 0.93% around 12:40 p.m.
After a sharp rebound at the start of the day, the European markets slowed down, nevertheless ending up. Paris rose 0.95% and Frankfurt 1.10%, after losing more than 1% on Monday. London took 0.62% and Milan 0.66%.
The boss of the US Federal Reserve Jerome Powell confirmed, during his confirmation hearing before the Senate, the need to normalize monetary policy.
He estimated that the end of monetary support to the US economy would not have a negative impact on the job market.
And for now, the threat of inflation is the most worrying, he says, justifying the series of key rate hikes coming this year.
The Fed boss anticipates that inflation could last until the middle of this year, and assures that the monetary institution is ready to act if it continues beyond the first half of the year.
“Even if words set the stage for a first rate hike in the near future, investors should interpret the change in monetary policy that has been initiated as a sign of both strength and confidence in future economic growth,” notes Konstantin Oldenburger, CMC Markets analyst.
This speech did not upset bond yields, with investors already anticipating four Fed key rate hikes in 2022.
Markets will now look to the release of US inflation figures for December on Wednesday.
Return of Technology, Bright Darktrace
Under pressure in recent sessions, European technology stocks rebounded on the back of a stabilization of bond rates.
In Paris, Capgemini grew by 3.21% and Teleperformance by 1.68%.
In Frankfurt, Infineon gained 2.49%. In London, cybersecurity firm Darktrace jumped 6.89% to 422 pence after raising its outlook for 2022.
In New York, Amazon took 2.75% and Meta, Facebook’s parent company, 1.34%.
British clothing on the rise
Clothing stocks rose in London after strong Christmas retail sales data from Britain’s trade federation. Next gained 4.52% to 8,000 pence and JD Sports Fashion 2.44% to 218.00 pence.
Resumption of orders for Boeing
Boeing (+ 2.40% to 214.34 dollars) saw its deliveries and especially its orders rebound in 2021 after two years of famine linked to the pandemic and the setbacks of its star plane, the 737 MAX, without having found the levels before these crises.
On the oil, euro and bitcoin side
Oil prices were climbing, boosted by investor confidence in firm demand, despite the spread of the Omicron variant of COVID-19.
By 12:30 p.m., the price of a barrel of North Sea Brent maturing in March rose 3.22% to $ 83.48. West Texas Intermediate (WTI) for February delivery was up 1.76% to $ 81.18.
The euro rose against the dollar by 0.29%, at a rate of one euro to 1.1359 dollar. It reached its lowest level since February 2020 against the British pound (at 83.24 pence), boosted by the prospect of a tightening of monetary policy.
After briefly dropping below $ 40,000 on Monday, bitcoin was trading at $ 42,400 (+ 1.63%).