Sunday, April 18

Stock market: what moves on the markets before the opening Thursday

(Photo: 123RF)

European stock markets were up slightly on Thursday morning, but remained cautious before the publication by the ECB of its monetary policy report, the day after that of the Fed.

The clues

On Wall Street, around 7.15 a.m., the futures contracts S&P 500 took 13 points to 4083 points, those of the Dow jones lost 4 points to 33,322 points, and those of Nasdaq increased by 119 points to 13,724 points.

In Europe, markets were mixed at mid-session. In London, the FTSE 100 gained 65 points to 6,861 points. In Paris, the CAC 40 took 32 points to 6,153 points and in Frankfurt the DAX lost 13 points to 15,146 points.

The wait-and-see policy was also de rigueur in Asia, where the Tokyo ended without a clear direction, ahead of the annual results announcements of Japanese companies and the restrictive measures envisaged in Japan in the face of the pandemic.

In Hong Kong, the index Hang Seng gained 1.2% while the composite indices of Shanghai and of Shenzhen have stood still.

The context

European markets were moving upward “despite the loose order of Wall Street,” said Franklin Pichard, CEO of Kiplink Finance.

According to him, “investors are reassured by the comments made by members of the Fed at the last meeting of the (American) Central Bank, on March 17”.

“The market is now waiting to see if the improving trend suggested by the latest economic indicators will be confirmed by company results,” he adds.

“The scenario of a strong rebound in activity across the Atlantic has been confirmed” by the Fed, agrees Christopher Dembik, associate director at Berenberg.

“Its members have praised the Biden government’s stimulus package for exceeding their expectations. However, they clearly suggested that a change in monetary policy in the short and medium term is not on the cards, which should reassure investors about the Fed’s intentions, ”he continued.

This Thursday, it is the turn of the European Central Bank to unveil, in the report of its last monetary policy meeting, its vision of the economy.

Discussions between various economic officials should also continue during the day. In particular, an IMF press conference is expected to conclude the spring meetings, and a debate on the economy with the IMF, the Fed, the WTO and the heads of the Eurogroup.

The day before, the Secretary of the Treasury, Janet Yellen, declared that the increase in taxes on American companies wanted by the Biden government to finance investments in infrastructure must encourage other countries to follow suit and stop cutting further this tax. .

Joe Biden launched a strong plea to convince Congress to adopt his investment plan of some $ 2 trillion, which he said is essential for the United States to stand up to China.

On the oil side

Around 7:30 a.m., the barrel of WTI US dollar fell 0.54% to US $ 59.45 and a barrel of Brent of the North Sea lost 0.27% to US $ 62.99.



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