European stocks expected higher after new highs hit on Wall Street 
 
Eurostoxx 50 3,575.41 points +0.91% 
CAC 40 5,588.38 points +1.20% 
DAX 30 13,790.29 points +1.49% 
FTSE 100 6,502.11 points +0.10% (closing December 24) 
SMI 10,603.49 points +1.84% 
AEX 627.59 points +0.19% 
BEL 20 3,663.06 points +0.11% 
IBEX 35 8,155.60 points +0.54% 
 
DJIA 30,403.97 points +0.68% 
Nasdaq 12,899.42 points +0.74% 
S&P 500 3,735.36 points +0.87% 
 
Nikkei 225 27,568.15 points +2.66% 
 
Exchange rate at 06:50 
Change from the close in New York 
 
EUR/USD 1.2238 +0.19% 
EUR/JPY 126.87 +0.09% 
USD/JPY 103.68 -0.11% 
 
   

TO FOLLOW IN FRANCE

Macroeconomic and business news should remain light on Tuesday in France. In this context and while the authorities are concerned about the health situation in certain regions, investors will be attentive to the evolution of the coronavirus pandemic and to the statements which could follow the health defense council which is to be held on Tuesday.

SHARES

European equity markets are expected to open in the green on Tuesday, in the wake of the records reached by Wall Street on Monday after the promulgation of the stimulus plan for the American economy by Donald Trump.

At 7:30 a.m., the CAC 40 futures contract gained 18 points, or 0.3%, according to data from broker IG Markets. The contract on the DAX 30 gained 78 points, or 0.6%, and that on the FTSE 100 rose by 28 points, or 0.4%.

US President Donald Trump finally signed into law the roughly $900 million plan to help households and businesses deal with the economic fallout from the health crisis. He also signed a federal state financing law of 1.4 trillion dollars until September, which makes it possible to avoid a partial closure, or "shutdown", of the federal administrative services.

The Dow Jones Index (DJIA) gained 0.7% on Monday to end at a new record high of 30,403.97 points. The broader S&P 500 index gained 0.9% and hit a new high of 3,735.36 points. The Nasdaq index, which is dominated by technology, rose 0.7% to 12,899.42 points, which is also a new historic high point.

“We can finally breathe a big sigh of relief and say that the soap opera around the recovery plan is over”, indicates in a note Hussein Sayed, strategist at FXTM.

The trend is also supported in Europe by the launch on Sunday of the vaccination campaign against Covid-19.

"With each passing day, we are removing uncertainties rather than adding to them," said Hani Redha, multi-asset portfolio manager at PineBridge Investments .

In addition, the House of Representatives inflicted a setback on Donald Trump on the night of Monday to Tuesday by opposing by a large majority the veto opposed by the president to the draft defense budget, amounting to 740, $5 billion. This text must now be debated in the Senate and could become the first law to come into force despite Donald Trump's veto.

In Asia, the markets are also generally well oriented. With a rise of 2.7%, the Nikkei index of the Tokyo Stock Exchange ended above the 27,000 point mark for the first time since April 1991. The Japanese index had reached a historic high of 38,915.87 points on December 29, 1989. In Hong Kong, the Hang Seng gained 0.8% at the end of the session.

Analysts say trading volumes are expected to remain subdued this week as many investors are on vacation for the holiday season. Markets will be closed Friday in the United States and Europe for the New Year.

OBLIGATIONS

Yields on US Treasury bonds rose on Monday, buoyed by the enactment of the US stimulus package. The yield on the ten-year benchmark bond ended at 0.953%, down from 0.933% on Thursday.

In this context, investors are increasingly looking to hedge against inflation, and the yield differential between the ten-year bond and the inflation-linked bond (TIPS) of the same maturity is close to 2%.

Spartan's Peter Cardillo said some of the bullish sentiment could come from the usual end-of-quarter portfolio adjustments as worries about the economy ease.

CHANGES

The euro rose against the dollar on Tuesday, buoyed by investor risk appetite after the enactment of Donald Trump's stimulus plan for the US economy.

“The fiscal stimulus package in the United States led to a general decline in the dollar”, although this remained relatively moderate, comments Vishnu Varathan, head of economics and strategy at Mizuho Bank .

OIL

Oil prices rise on Tuesday morning, driven by the promulgation of the American stimulus plan, but their progress risks being limited by the new variant of Covid-19, warn analysts at Axi.

Containment measures intended to curb the spread of this variant of the virus, which appears to be highly contagious, could weigh on prices amid uncertainty over oil demand levels in January, Axi said.

At 7:20 a.m., the February contract on Brent North Sea crude was up 35 cents, at $51.21 a barrel, while that on Nymex-listed light sweet crude (WTI) was up 34 cents, at $47.96 a barrel. barrel.