(Paris) European stock markets opened higher on Tuesday, after a mixed start to the week due to the sharp rise in oil prices, which somewhat slowed the rebound in indices that began in mid-March.
Green was in order in Europe for most indices: around 3:15 a.m. (Eastern time), Paris gained 0.22%, close to its all-time high, Frankfurt 0.36%, London 0.54% and Milano 0.24%.
In Asia, the Tokyo Stock Exchange gained 0.35%. Shanghai rose 0.46% in latest trade, Hong Kong fell 0.45%.
After jumping on Monday, oil kept its gains: at the same time, a barrel of Brent for June delivery even gained 0.54% to 85.39 dollars and a barrel of WTI for May delivery 0.63% to 80.93 dollars. Both are up nearly 7% since Monday.
“Yes, tighter supply is driving oil prices […]. However, a rapid rise also dampens global growth” and therefore demand for black gold, which can cap the price spike, said Ipek Ozkardeskaya, analyst at Swissquote.
The rise puts pressure on Western central banks again, as it raises inflation risks. This has declined in recent months mainly due to the decline in energy prices, such as oil and gas.
Several central banks have therefore decided to slow down the rise in their interest rates, such as the American Central Bank during these last two meetings.
On Tuesday, the Reserve Bank of Australia even decided to take a break and not raise rates for the first time in 10 meetings. The governor, however, said that “further monetary tightening may be needed” to bring Australian inflation, currently at 6.8% year on year, towards the 2 or 3% target by the institution.
Among the indicators expected by investors on Tuesday are the evolution of producer prices in February in the euro zone, as well as durable goods orders in the United States.
They will also start watching US employment data carefully, with a first indicator on the number of job vacancies.
The monthly report for March is due on Friday, but markets in Europe and the United States will be closed on that day and it will take until Tuesday until the end of the long Easter weekend to hear their reaction.
Elsewhere in Germany, exports increased by 4% over one month in February, up for the second month in a row.
L’Oréal, the world’s number one cosmetics company, announced on Tuesday the signing of an agreement with Natura
The L’Oréal Luxe category (Lancôme, Yves Saint Laurent, Giorgio Armani, etc.) held first place among the group’s various divisions for the second consecutive year in 2022 with 14.6 billion euros in sales (18 .6%). The action gained 0.98% in Paris.
Canadian mining group Teck Resources said on Monday it had rejected an “unsolicited and opportunistic” offer to buy Swiss commodities giant Glencore.
The latter had offered a premium of 20% over Teck’s share price at the close, March 26, when announcing its offer. Gencore shares rose 3.03% in London.
The dollar was trying to stabilize against other currencies. The euro was worth 1.0908 dollars (0.08%) and the pound was worth 1.2442 dollars (-0.10%) around 3:10 a.m. (Eastern time).
Bitcoin rallied 1.89% to $28,110.
On the bond market, interest rates on government bonds remained stable, around 3.43% for US 10-year debt and 2.27% for German debt at the same maturity.
