Stocks try to recover as they watch the pound fall – 09/26/2022 at 10:01

A trader in the Madrid Stock Exchange

A trader in the Madrid Stock Exchange

PARIS (Reuters) – Europe’s main stock markets rallied at the start of trading on Monday, helped by the prospect of a higher open on Wall Street, which eased investors concerned about both recession risks and the turbulence of the moment. in the foreign exchange market.

In Paris, the CAC 40, which fell on early stocks, gained 0.51% to 5,812.71 points by 07:50 GMT and in Frankfurt, the Dax advanced 0.38%.

The EuroStoxx 50 index was up 0.62%, the FTSEurofirst 300 was up 0.13% while the Stoxx 600 was down 0.17%.

The latter lost 4.37% last week and closed on Friday at its lowest level since December 2020 after multiple hikes in key rates and new signs of deterioration in the economic situation.

In London, the heavily weighted export-oriented large-cap FTSE 100 rose 0.34%, but the broader FTSE 250 fell 0.27%.

The pound sterling hit a new historical low as soon as the day began and lost another 1.33% against the dollar and 1.23% against the euro, which fuels speculation about a possible emergency intervention by the Bank of England (BoE ).

The Milan Stock Exchange took 1.37% the day after the early legislative elections, won by the right-wing alliance led by Giorgia Meloni.

The futures of the main US indices so far point to an upward open of 0.14% for the Dow Jones, stable for the Standard & Poor’s 500 and 0.05% for the Nasdaq, after the sharp falls experienced last week .

This outlook benefits, among other things, European technology stocks, whose Stoxx index gains 2%. Within the CAC 40, STMicroelectronics occupies 1.94% and Dassault Systèmes 1.13%.

On the downside, the raw materials compartment yielded 2.29% and the oil and gas compartment 1.18%, weighing down the prices of raw materials and hydrocarbons the continued appreciation of the dollar.

(Written by Marc Angrand, edited by Sophie Louet)

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