Equities Rise, Hopes for Growth Outweigh

Equities Rise, Hopes for Growth Outweigh
Equities Rise, Hopes for Growth Outweigh

EUROPEAN SCHOLARSHIPS MOVE SLIGHTLY AT MID-SESSION

by Laetitia Volga

PARIS (Reuters) – Wall Street is expected to open in the green on Thursday and European stock markets advance slightly at mid-session, as investors approaching the first session of the second quarter on the right foot, encouraged by expectations of a continuation of the economic recovery.

New York index futures signal a stable Wall Street opening for the Dow Jones, up 0.3% for the Standard & Poor’s and 0.9% for the Nasdaq.

The trend on Wall Street could change with the publication at 12:30 GMT of jobless claims last week and that at 14:00 GMT of the ISM index of activity of the manufacturing sector. In Paris, the CAC 40 gained 0.23% to 6,081.33 points around 11:20 GMT. In Frankfurt, the Dax takes 0.35% and in London, the FTSE takes 0.5%.

The pan-European FTSEurofirst 300 index rose by 0.37%, the EuroStoxx 50 in the euro zone by 0.32% and the Stoxx 600 by 0.39%.

Many investors are hoping stocks will continue to rise in the second quarter, buoyed by the prospect of accelerating economic growth with vaccinations and new spending programs from the Biden administration.

Joe Biden on Wednesday presented an infrastructure investment plan of more than $ 2,000 billion to reshape the US economy and counter the emergence of China.

European PMIs are also more encouraging, with the final results of IHS Markit’s surveys confirming that growth in manufacturing activity in the eurozone accelerated in March to its highest level in nearly 24 years.

Nevertheless, the fears surrounding the new containment measures taken in several European countries, especially in France, in the face of the pandemic are still present.

Jens Weidmann, a member of the Governing Council of the European Central Bank, said the forecast for a 4.1% rebound in the euro area economy this year presented three weeks ago was already compromised by the rally. cases of infection. VALUES TO FOLLOW AT WALL STREET

In pre-market trading, Micron Technology gains more than 4% after announcing a revenue target for the third quarter above expectations thanks to an increase in demand for memory chips for smartphones, the deployment of 5G networks and the rise of artificial intelligence software pushing prices up.

VALUES IN EUROPE

The European high-tech sector (+ 1.4%) posted one of the strongest gains after the better-than-expected forecasts of the American semiconductor manufacturer Micron and the announcement by TSMC of an investment plan of 100 billion dollars over three years.

STMicroelectronics gains 0.98% and ASM International 3.35%.

In the news of mergers and acquisitions, Vinci takes 3.02%, at the top of the CAC 40, after the announcement of the acquisition of the energy activities of the Spanish ACS (-0.92%) for around 4.9 Billions of Euro’s.

On the downside, Atos fell 15.00%, for the moment its biggest drop since October 2018, after the announcement of the discovery of “internal control failures” in two subsidiaries in the United States.

Despite a half-year operating margin well above its objective, Sodexo fell back slightly (-0.22%) after forecasts deemed disappointing.

RATE

Eurozone benchmark yields are virtually flat at -0.305% for the ten-year German Bund.

Its American equivalent fell by nearly three basis points to 1.7197% and thus erases almost all of the increase recorded the day before in reaction to the presentation of Joe Biden’s public investment plan.

CHANGES

The US currency is virtually stable against a basket of international currencies. The “dollar index” gained 3.66% in the first quarter, its best quarterly performance since 2018, as traders are banking on a strong economic recovery.

The euro is trading around $ 1.1740.

OIL

The oil market erases part of its losses on Wednesday, before a ministerial meeting of OPEC and its allies which could once again renew the production control measures in force in the face of fears about demand.

Brent gained 1% to 63.37 dollars a barrel and US light crude (West Texas Intermediate, WTI) 1.22% to 59.88 dollars.

(edited by Patrick Vignal)

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