European equities rose on Thursday in the first opportunity to respond to the latest decision from the Federal Reserve, with the big story that the sale of bonds has done nothing to the central bank.
The Stoxx Europe 600 SXXP,
increased by 0.3%, with even stronger gains for the Stoxx Europe TMI Value Index STVP,
The yield on the ten-year US Treasury TMUBMUSD10Y,
jumped as high as 1.73%, with the move when European traders started. Yields on German TMBMKDE-10Y,
and the United Kingdom TMBMKGB-10Y,
effects of similar maturity also increased, but not to the same extent. Yields move in the opposite direction of prices.
Banks including Deutsche Bank DBK,
rose over the growing gap between short- and long-term returns, while rising bond yields sent Nasdaq-100 futures NQ00,
lower.
The points system of the Federal Reserve indicated that the median voter did not expect to raise interest rates within two years. Jerome Powell, chairman, said the central bank will keep the policy loose until employment recovers, as it will reduce expected inflation readings in the new few months.
The Bank of England makes its own interest rate decision separately at 12 o’clock local time, or at 08:00 Eastern. Like the Fed, the focus will fall on the messages, especially since the UK vaccination efforts COVID-19 are fruitful. Although there is little doubt about the consensus for ‘no change’, the market will be looking for an indication of a shift in the MPCs [Monetary Policy Committee’s] bias, either by voting or by prospects, ”said Michael Matthews, fund manager at Invesco.
Also in Europe, the car manufacturer Volkswagen’s VOW3,
preference shares expanded their run to a new six-year high and rose 2%. Porsche Automobil Holding PAH3,
which is the majority owner of Volkswagen, achieved 5%. Hopes for Volkswagen’s ambitions for electric vehicles were fueled earlier this week by the battery’s presentation.
Sartorius SRT,
the supplier of pharmaceutical and laboratory equipment, increased by 10% after sales and margin guidance for the year, citing a strong first ten weeks of 2021.
Fevertree drinks FEVR,
the shares fell by 11%, after the tonic manufacturer led for worse margins than the market expected.
Zur Rose ROSE,
the Swiss pharmacy chain, which is benefiting from the German switch to online deliveries, has fallen by 8% because it said it could exceed 4 billion francs in sales “by the start” of a period of three to five years, and within 12 to 18 months can be equal. in 2021.