ROUNDUP / Aktien Europa Conclusion: Profits – Clearer prospects for the US Federal Reserve
PARIS / LONDON (dpa-AFX) – The US Federal Reserve (Fed) provided relief on Europe’s stock exchanges on Thursday. After investors had previously positioned themselves more cautiously, the monetary authorities now largely met expectations with their interest rate signals on the previous evening. Investors welcomed the now clearer monetary policy outlook. The monetary policy decisions made by the central banks of Switzerland and Great Britain and the European Central Bank (ECB) that became known on Thursday, however, did not move the markets sustainably.
The EuroStoxx rose by 1.01 percent to 4201.87 points. For the French CAC 40 it went up 1.12 percent to 7005.07 points. The British FTSE 100 gained 1.25 percent to 7260.61 points.
As expected, the US Federal Reserve announced a faster reduction in bond purchases and, somewhat unexpectedly, even gave signals for three rate hikes in the coming year. The faster pace results from the expected strong economic growth, which, according to Fed Chairman Powell, should be achieved despite the new Coronavirus variant Omikron, wrote the Landesbank Baden-Württemberg. Investors are betting on this growth scenario. On the previous evening, the leading US stock exchanges had picked up late.
The ECB is letting its Corona emergency purchase program for bonds expire in the coming year. However, there is no end in sight to the low interest rates in the euro area. The British central bank, on the other hand, is resisting high inflation and surprisingly raises its key rate for the first time in the corona pandemic. The Swiss National Bank, on the other hand, is not touching interest rates and is thus continuing its very expansionary monetary policy.
The bottom line that the mood on the stock market has now clearly brightened can be seen in the European industry table. With the exception of the defensive real estate sector, all sectors posted gains.
The oil and gas sector and the raw materials sector were the most attractive, with premiums of 2.8 and 2.7 percent respectively. The banking sector, which is also considered to be very sensitive to the economy, rose by 2.3 percent. The prospect of interest rates rising again soon, at least in the USA and Great Britain, was a source of joy.
Among the individual stocks from the banking industry, the shares of BNP Paribas in Paris gained around two percent. The Canadian Bank of Montreal (BMO) is interested in the US subsidiary Bank of West of the French bank, reported the Bloomberg news agency, referring to people familiar with the matter.
The papers of the vaccine developer Valneva even jumped 16 percent. Brokers referred to good test results with a Covid vaccine candidate.
The shares of EDF (EDF (Electricité de France)) but sagged by more than 15 percent. The energy company had to cut its annual forecast for nuclear profits because of the shutdown of another nuclear reactor after a fault in the safety system was recently discovered in a similar reactor at the Civaux nuclear power plant.
In London, the shares of Boohoo (boohoocom) made negative headlines with a price drop of around 23 percent. The online fashion retailer had seriously disappointed the market with its operating profit outlook for 2022. In the wake it went down for the papers of the competitor ASOS by more than five percent./la/zb
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