The Euronext stock exchange in the La Defense district
by Claude Chendjou
The main European stock markets are expected to rise again on Thursday, with stocks likely to continue the movement of euphoria born from Donald Trump’s victory in the American presidential election.
However, the monetary policy announcements planned by the Bank of England (BoE) and especially the American Federal Reserve (Fed) could cause some volatility.
In addition, on the corporate results side, the session was once again rich with notably ArcelorMittal, Air France-KLM, Veolia, Engie and JCDecaux in Paris, and in the rest of Europe Daimler trucks, Rheinmetall, Rolls Royce and Sainsbury.
According to the first available indications, the Parisian CAC 40 should gain 0.26% at opening. The Dax in Frankfurt could advance by 0.31% despite a breakup of Olaf Scholz’s coalition in Germany likely to lead to early elections. The FTSE 100 in London should also gain 0.31%. The EuroStoxx 50 index is expected to increase by 0.33% and the Stoxx 600 to increase by 0.35%.
Donald Trump signed a spectacular return to the White House on Wednesday with an economic program that will make room for tax cuts and deregulation in several sectors, which is pleasing investors for the moment. But the Republican candidate’s promises could also reignite inflation and have significant repercussions on the global economy as the Fed works to calm price dynamics.
The Fed’s monetary policy decision at 7:00 p.m. GMT will be particularly closely monitored in this regard, while at Crédit Mutuel AM, we now expect a wait-and-see Fed after Donald Trump’s victory.
Before the Fed, the BoE must also make its decision at 12:00 GMT and the consensus of economists foresees a further reduction in rates, after an initial drop of a quarter of a point in the interest rate in August.
A WALL STREET
The New York Stock Exchange soared to closing records on Wednesday to salute the resounding victory of Donald Trump, a promise in the eyes of investors of an environment favorable to businesses with tax cuts and deregulation.
Wall Street’s three major indexes finished at closing records, with the Dow and S&P-500 recording their biggest single-session percentage gains since November 2022.
The Dow Jones index gained 3.57%, or 1,508.05 points, to 43,729.93 points.
The broader S&P-500 gained 146.28 points, or 2.53%, to 5,929.04 points.
The Nasdaq Composite advanced 544.29 points (2.95%) to 18,983.465 points.
IN ASIA
On the Tokyo Stock Exchange, as the close approaches, the Nikkei index fell by 0.34% to 39,331.67 points, on profit taking. The broader Topix, on the other hand, gained 1.28% to 2,750.56 points.
The MSCI index bringing together stocks from Asia and the Pacific (excluding Japan) gains/loses%.
In China, the Shanghai SSE Composite gained 1.44% and the CSI 300 increased by 1.49%. The Chinese and Hong Kong stock markets are buoyed by investor optimism about potential recovery measures which take precedence over concerns about a worsening of trade tensions under a second presidency of Donald Trump in the United States.
Asia-Pacific equity markets were mixed on Thursday as investors weighed the implications of a Donald Trump presidency while monitoring monetary policy decisions by the US Federal Reserve and other major central banks later in the year. daytime..
VALUES TO FOLLOW IN EUROPE:
EXCHANGES/RATES
The dollar approached its highest level in four months on Thursday, at 105.06 points, as the market continued to digest Donald Trump’s victory in the US presidential election, while investors monitored several central bank decisions expected during the day. .
The euro rose by 0.14%, to 1.0743 dollars, after falling on Wednesday to 1.068275 dollars, a first since July 27.
The pound sterling is trading at $1.2926 (+0.40%) before the BoE announcements.
The yield on ten-year US Treasury bonds is stable at 4.4255%.
OIL
The oil market rebounded on Thursday after a fall linked to the return of Donald Trump to the White House and the strength of the dollar. Investors nevertheless continue to monitor the consequences of this result.
Brent rose 0.65% to $75.41 per barrel and American light crude (West Texas Intermediate, WTI) rose 0.54% to $72.08.
OR
Gold prices hit their lowest levels in more than three weeks on Thursday as the dollar strengthened following Donald Trump’s victory, while attention now turned to the Fed’s decision.
Spot gold fell 0.16% to $2,654.83 an ounce around 0615 GMT, after falling to $2,643.3, the lowest since October 15.
(Writing by Claude Chendjou, edited by Kate Entringer)
