London took 1.67%, Paris 1.17%, Frankfurt 1.38% and Milan managed to grab 0.17% following a session spent mostly in the red. In Zurich, the SMI gained 1.39%.
Stock markets advanced sharply on Monday, helped by statements by US President Joe Biden referring to the lifting of certain customs duties applied to Chinese imports by the United States.
London took 1.67%, Paris 1.17%, Frankfurt 1.38% and Milan managed to grab 0.17% following a session spent mostly in the red. In Zurich, the SMI gained 1.39%.
After a higher opening, the New York Stock Exchange indices accelerated: the Dow Jones gained 2.12%, the S&P 500 1.75% and the Nasdaq index, with a strong technological composition, also gained 1.23% towards 3:55 p.m. GMT.
The euro climbed 1.02% once morest the greenback, to 1.0671 dollar.
Europe’s single currency was reacting to ECB President Christine Lagarde’s announcement that the first rate hike should be decided in July and that the era of negative rates should end by “the end of the third trimester”. Bank stocks also benefited.
In Frankfurt Deutsche Bank jumped 7.01%; Commerzbank by 6.55%. In Paris, Societe Generale took 4.25%.
The optimism blowing in the US market was mainly due to the announcement by US President Joe Biden of the launch of a new economic partnership in Asia-Pacific, according to Peter Cardillo of Spartan Capital Securities.
Visiting Japan, Mr. Biden made it clear that he had no intention of reviving major free trade agreements, but announced on Monday that he was considering lifting certain tariff barriers weighing on China, stressing that they would not had not been imposed by his administration.
The American president also judged that a recession might be avoided in the United States, despite the high inflation that the country is currently experiencing and which is pushing the American Federal Reserve (Fed) to tighten its monetary policy more aggressively.
The global economic context is still weighed down by various factors, starting with inflation and geopolitical risks, and experts are wondering if the equity market has already bottomed out or if the downward trend will continue.
A series of indicators should help operators see more clearly the trajectory of the economy: the PMI indices for manufacturing industry and services in May are due on Tuesday, before the publication of the PCE inflation index , closely followed by the US central bank (Fed) on Thursday.
On the bond market, sovereign yields rose slightly in a still very volatile environment.
The M&A market is bubbling
VMware’s share price jumped 20.67% following the Wall Street Journal published information on advanced discussions with the American semiconductor manufacturer Broadcom (-1.90%), with a view to acquiring the company software and remote computing.
Electronic Arts also advanced 2.42%, supported by information from the Puck site that the video game publisher recently had discussions with several potential buyers, including Disney and Apple.
In Europe, the German group Siemens Energy (-0.83% in Frankfurt) will spend four billion euros to own all of Siemens Gamesa (+6.21% in Madrid), its subsidiary in wind power in great difficulty , with the intention of removing it from the stock market, its boss Christian Bruch said on Monday.
Didi va quitter Wall Street
Didi Global shareholders have voted to withdraw the Chinese chauffeur-driven car booking group from the New York Stock Exchange (NYSE), the largest US stock exchange, less than a year following the company went public Street. Its stock gained 2.67% in New York.
Oil continues to rise
Oil prices were up slightly, supported by the easing of health restrictions in China, reassuring on demand, as by the European plan to embargo Russian oil which is looming.
Around 3:50 p.m. GMT, a barrel of Brent from the North Sea for delivery in July took 0.43% to 113.03 dollars.
The price of a barrel of American West Texas Intermediate (WTI) for delivery in July, which is the first day of use as a benchmark contract, took 0.28% to 110.59 dollars
Bitcoin rose 1.40% to $30,320.