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China wants to “stabilize” its markets, the Shit 40 welcomes the news while awaiting the Fed news, Market

The Paris Stock Exchange is moving to nearly two-week highs, driven by the sharp rebound on Wall Street, but above all by Chinese markets. Investors welcome Beijing’s recent decision to support its financial markets weighed down by fears of inflation and the war Ukraine. an Deputy Prime Minister Liu has said he will take steps to stabilize capital markets and strengthen the economy in the first quarter, Xinhua reports.

At 10:30 am, the 40 rose 2.69% to 6,525.93 points in business volume of 920 million euros after peaking at 6,535.67, unprecedented since 3 March. The contracts futures US indices are also up, the March expires on the 100 more outperforming the trend with a gain of 1.7% as Foxconn announced its resumption of operations at Shenzhenwhere the Apple iPhone is produced.

Enough to support technology stocks and in particular STMicroelectronics and Soitec, which is up about 6%. China’s support for the markets is also reviving the social sector: LVMH, Dry and Hermes so between 5.2% and 6% resumed after falling the day before the announcement of Shenzhen city’s full enclosure. Auto stocks and go with the flow. Faurecia 6.7% won, Renault 5.5% and BNP Paribas 4.1%.

Risk of default on Russia’s debt?

From a geopolitical point of view, there are discussions between Ukraine and Russia A resumption is needed this Wednesday, with the program of a possible ceasefire and withdrawal of Russian troops. An adviser to President Zelensky said the negotiations were tough, but said there was still a chance for a compromise as the exchanges progress ” more realistic “. Separately, Russia began the process of paying $ 117 million worth of bond coupons due on Wednesday. These payments have a 30 day grace period before a possible default.

The US Federal Reserve is preparing to announce its first interest rate hike since the end of 2018. The market is generally pricing in a fourth point rise in interest rates nutrition funds. But observers will mostly be looking at new economic projections of nutrition and prospects for upcoming rate hikes. The famous “dot plot” will be carefully examined taking into account that is now being surpassed December 2021 “, Note analyst at BNY Mellon Markets in the face of inflationary and geopolitical tensions.

Powell and the fed on a “dot plot.”

And recall, that on this date, the [projection] The committee’s average for the federal funds rate is projected by a rate hike this year, three more next year and two in 2024. This projection is clearly out of date now. “, they think. They see a four or more upside-down potentials on the median, but we are also aware that uncertainty about world events can lead to a wide variety of views between hawks and committee pigeons, with two ‘types’ of charts showing forecasts of the Council. both groups ».

The nutrition statement will be issued at 7 pm, therefore Jerome Powell its press conference will begin at 7:30 pm In particular, it is expected to reduce the nutrition balance sheet, which will reach almost $ 9,000 billion. If the issue should not be decided before May, analysts believe that the question of a quantitative tightening of monetary policy by nutrition clearly arises.


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