(Paris) European stock markets rose again on Tuesday, unfazed by rising oil prices, while the dollar hit a ten-month low against the pound.
Green was in order in Europe for most indices: around 7:35 a.m. (Eastern time), Paris gained 0.65%, approaching its all-time high, Frankfurt 0.93%, Milan 0.43% and London was stable.
US index futures are pointing to an open up between 0.1% and 0.4%.
After jumping on Monday in the wake of the announcement of unexpected production cuts by OPEC countries, oil extended its gains.
By 7:25 a.m. EST, a barrel of Brent for June delivery gained 0.73% to $85.55 and a barrel of WTI for May delivery 0.80% to $81.06. Both are up more than 7% since Monday.
The rise in oil puts some pressure on Western central banks, as it raises inflation risks.
But investors prefer to bet on the slowdown in price increases observed in recent months, mainly due to the decline in energy prices since the start of the war in Ukraine.
On Tuesday, the ECB released an indicator showing that consumer expectations for inflation in the euro zone had fallen markedly in February compared to the previous month. Eurozone producer price inflation in February also slowed slightly more than expected.
Several central banks have decided to slow the rise in their interest rates, such as the American Central Bank during its last two meetings.
“It may be time to pause and reflect,” says Oanda analyst Craig Erlam, who points out that “recent strains in the banking sector have highlighted the risks of significant monetary tightening.” .
On Tuesday, the Reserve Bank of Australia decided to take a break and not raise rates for the first time in ten 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 institution’s target of 2 or 3%.
Investors are still awaiting durable goods orders in the United States this week and a first data on employment in the United States, the monthly report published on Friday.
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 year in a row in 2022 with 14.6 billion euros in sales ( 18.6%). The action gained 0.90% in Paris.
The pound has benefited from a somewhat less gloomy outlook in the UK since the start of the year and hit a ten-month high on Tuesday against a dollar weakened by worries weighing on the banking sector in the United States. It touched the symbolic threshold of 1.25 dollars.
The euro hit its highest level since early January against the dollar. But by 7:30 a.m. EST, it was only up 0.04% to $1.0904.
“Risks to banks are seen as concentrated in the US, less so for the Eurozone and even less present in the UK,” says Dales.
Bitcoin rallied 2.50% to $28,275.
On the bond market, interest rates on government bonds rose sharply, around 3.47% for US 10-year debt and 2.33% for German debt with the same maturity.
