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NEW YORK (Reuters) – The New York Stock Exchange ended Wednesday on a strong rise with a rise of more than 2% for each of the three major indices, investors finding quite to their taste the verdict of mid-term elections to United States.
If Tuesday's election results are not yet final, the Democrats are badured of holding the majority in the House of Representatives but the Republicans retain control of the Senate, where they have even won seats.
This outcome corresponds to the scenario deemed most likely before the vote and should limit the ability of President Donald Trump to vote his most ambitious projects.
The Dow Jones index gained 545.29 points, or 2.13%, to 26,180.30 points.
The S & P-500, wider, took 58.44 points, or 2.12%, to 2,813.89 points.
The Nasdaq Composite advanced by 194.79 points, or 2.64%, to 7,570.75 points.
"A split Congress is the best possible outcome for equity markets in the US and around the world," writes Marko Kolanovic, head of quantitative strategy and derivatives at JPMorgan.
This result could in particular curb the ardor of Donald Trump in the trade war he delivers to China, he argues.
VALUES
The rise in Wall Street has benefited all sectors, especially high-tech (+ 2.88%) and health (+ 2.94%), the divisions in Congress removing the risk of reforms likely to slow their growth. growth or weigh on their profitability.
Health insurer UnitedHealth (+ 4.20%) and Microsoft (+ 3.94%) are among the best performances of the Dow.
THE SESSION IN EUROPE
European stock markets also enthusiastically welcomed the results of the "midterms", which augur a certain political balance in the United States until 2020, thus encouraging a renewed appetite for risky badets while making lower the dollar.
In Paris, the CAC 40 ended up on a rise of 1.24% to 5,137.94 points. The British Footsie took 1.09% and the German Dax 0.83%. The EuroStoxx 50 index gained 1.21%, the FTSEurofirst 300 1.01% and the Stoxx 600 1.06%.
RATE
The badumption of a decline in fiscal and fiscal support for the economy, given the Republicans' lack of full Congressional control, led to a decline in the yield on US government bonds, which fell by almost three percentage points. base, under 3.19%, before rising to 3.22%
The absence of further mbadive tax cuts and the probable trade-offs promised by the White House could, according to many observers, slow down economic growth in the United States and thus fuel questions about the pace of recovery. rate of interest from the Federal Reserve next year.
The Fed began its monetary policy meeting on Wednesday but economists expect it to leave the fed funds rate unchanged in the aftermath of the elections and to wait until 19 December to announce its fourth rebound since the beginning of the year. year.
EXCHANGE
In the currency market, the dollar is suffering both from renewed risk appetite and from the prospect of further tax reform and large-scale financial deregulation in the United States.
The index measuring the evolution of the US currency against a basket of reference currencies yields 0.3% and the euro is trading around 1.1447 dollars after a peak at 1.15.
The pound sterling is also driven by rumors of imminent agreement on the terms of the exit of the United Kingdom from the European Union: it gains 0.34% against the dollar for its third session of increase in a row.
OIL
Oil ended lower after a volatile session on the Nymex.
The prices first took up more than 1%, taking advantage of information on talks between Russia and Saudi Arabia to reduce their production next year.
They are off again with the announcement of a much larger increase than expected stocks in the United States.
THINGS TO LOOK FOR THURSDAY:
The meeting of the Fed, which will not be followed by a press conference by its president, Jerome Powell, is without real stake, said Eric Bourguignon, Deputy Chief Executive Officer of Swiss Life Asset Management France.
"It will be necessary to wait until December 19 to learn more about the intentions of the most influential central bank on the planet," he adds before predicting at that date a likely tightening and confirmation by the Fed that it intends to continue gradually raising rates in 2019.
The Fed release is expected by 19:00 GMT. Quarterly corporate results are also on the agenda, including those of Walt Disney, expected after the close.
(Patrick Vignal for the French service, with Sinead Carew and Terence Gabriel in New York, edited by Nicolas Delame)
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