2023-12-13 21:56:17
The Dow Jones rose by 1.40%, climbing above 37,000 points for the first time in its history. The Nasdaq rises 1.29% and the S&P 500 advances 1.37%.
Wall Street celebrated the decision of the American central bank to leave rates unchanged with a record for the Dow Jones, while the European stock markets had calmly awaited the outcome of this monetary decision.
On Wall Street, the Dow Jones index gained 1.40%, climbing above 37,000 points for the first time in its history. The technology-dominated Nasdaq gained 1.29% and the S&P 500 climbed 1.37%.
The Federal Reserve (Fed) kept its rates in a range of 5.25 to 5.50%, the highest in 22 years. But new rate projections from the Fed show three quarter-percentage-point rate cuts over the next year.
Bond yields have fallen sharply.
The rate on ten-year Treasury bills thus slipped to 4.02%, around 9:30 p.m. GMT, compared to 4.20% the day before.
Paris and Frankfurt, following approaching their absolute record in points established the day before at the start of the session, finally lost 0.16% and 0.15%. London took 0.08%. In Zurich, the SMI gained 0.34%.
The main Chinese stock markets fell further, disappointed by the absence of new announcements from Beijing to support Chinese economic activity, following a meeting between the main leaders of the Chinese Communist Party (CCP).
After the inflation figures in the United States on Tuesday, wholesale prices, paid by producers, remained stable over one month in November, while analysts expected a slight increase of 0.1%.
“The data confirms the downward trend in inflation, even if the slowdown in consumer prices is more gradual,” commented Rubeela Farooqi, chief economist for HFE.
On Tuesday, the American Secretary of the Treasury, Janet Yellen, was pleased to see inflation “on a marked slowing trend”, saying that there was “no reason”, at the current rate, not to see it return to the Fed’s 2% target.
Also on the agenda, monetary policy decisions from the European Central Bank (ECB) and the Bank of England will be expected on Thursday.
Pfizer unscrews
The American pharmaceutical giant Pfizer published forecasts for 2024 on Wednesday including its takeover of the biotech Seagen, which should be effective on Thursday, disappointing the markets which anticipated better. The stock lost 6.72%.
Earnings per share are expected to be in the range of $2.05 to $2.25 in 2024, compared to $2.45 to $2.65 previously anticipated.
The devaluation of the peso weighs
Several companies linked to Argentina suffered on the stock market following the announcement of the shock devaluation of the pesos by the president-elect. One peso will now be worth $800, up from $366.52 at Tuesday’s close.
In France, the Carrefour distribution group, where the country’s turnover represents around 3.75% of the group, fell by 5.37% on the stock market. In Madrid, Telefonica lost 3.29%.
SMA Solar takes the shade
The manufacturer of photovoltaic inverters SMA Solar (-9.58%) tumbled following the German government’s announcements to cut public aid in solar energy, one of the measures aimed at solving its budgetary puzzle for 2024.
The energy company Siemens Energy also suffered from these announcements (-3.20%)
On the side of oil and currencies
Oil prices recorded a rebound on Wednesday, following hitting a nearly six-month low, supported by a drop in crude stocks in the United States and a softening of communication from the American central bank (Fed).
The price of a barrel of Brent from the North Sea gained 1.39%, to close at $74.26.
A barrel of American West Texas Intermediate (WTI) gained 1.25%, to $69.47.
On the foreign exchange market, following the Fed meeting, the dollar fell 0.80% once morest the euro to 1.0880 dollars per euro.
Bitcoin rose 4.03% to $42,745.
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