Wall Street is expected to rise and European stock markets advance in the middle of the session, and concerns related to inflation and monetary policies give way to hopes associated with reopening economies and progress in vaccination against Covid-19.
Goldman Sachs estimates that half of the world’s population can be vaccinated by the end of the year.
New York’s major futures point to an open 0.3% for the Dow and S&P 500 and 0.64% for the Nasdaq.
In Europe, gains range from + 0.20% in Paris to + 0.7% in Amsterdam. Euro Stoxx 50 rose 0.28% and Stoxx 600 rose 0.38%. The DAX hit an all-time high in the morning, the CAC 40 was its highest level in more than 20 years, and the Stoxx 600 is just a few parts of the record set on May 10.
Against the trend, the Bel 20 Index lost 0.23%, slowed by Galapagos, which lost its representative share of nearly 3%.
“Equity markets developed higher everywhere in Europe on Tuesday, in the context of renewed optimism regarding the economic recovery as many countries reopened,” notes Pierre Ferrett, an analyst at ActivTrades.
Investors welcomed the words of Richard Clarida, Vice President of the US Federal Reserve, who confirmed Monday evening that he still expected inflation to be temporary and not sustainable. And this, despite the acceleration in April that triggered panic in the markets last week.
“Investors are ready to seize any opportunity to buy stocks after these words from the Fed and ahead of a very busy day tomorrow,” continued Mr. Ferrett.
On Wednesday, the minutes of the US Central Bank’s latest monetary policy meeting will be released.