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Stoxx 600 appreciates 0.59% at 387.03 points
Nikkei appreciated 0.60% to 21,462.86 points
Portugal's 10-year yield falls by 2.9 basis points to 0.513%
Euro earns 0.63% to 1.1297 USD
Oil increases by 2.64% to $ 63.45 per barrel
Fed hitchhikes
European stock markets began their bullish session, taking advantage of the more accommodative attitude of the US Federal Reserve. The US central bank kept interest rates at the June meeting but admitted to lowering the price of silver. Jerome Powell assumed the data indicated, for the first time, a scenario of falling interest rates, which has raised expectations higher investors.
"The scenario of a slightly more accommodating policy has been strengthened," said the Fed chairman at the press conference at the end of the monetary policy meeting. Powell also said the Fed would be ready to use the tools needed to support economic growth, reassuring the fact that the authorities would be ready to react if the economy needed them.
This context has led investors to raise their expectations for the future of US monetary policy. Goldman Sachs is already predicting that the Fed will announce two interest rate cuts in the US this year, totaling 50 basis points. The first will take place in July and the second two months later.
The Fed joins the European Central Bank (ECB), which has also opened the door to lower interest rates in the euro area.
In this context, the Stoxx600 index, which includes the 600 largest European stocks, appreciated 0.59% to 387.03 points. On the domestic stock market, the PSI-20 index, which started the day with gains, has already reversed the trend and continued with a decline of 0.06%, while the paper sectors and the Retail sales are devaluing.
Minimum renewal interest
The prospect of a decline in interest rates on both sides of the Atlantic pushes implicit sovereign debt rates. Portugal's 10-year debt yield was down 2.9 basis points to 0.513%, a new all-time low. The decline is widespread in Europe, the interest rate of the German debt yielding 1.8 points to -0.310%. France and Spain are down 2.5 points and Italy is down 5.4 points to 2.049%.
The dollar falls and the prospects of interest are lower
The expected reduction in interest rates in the United States reduces the attractiveness of the dollar, as investors prefer to bet on riskier assets (central banks providing significant support to the economy) and can generate higher returns. Thus, the euro is up 0.63% to 1.1297 USD, although in Europe there is also talk of a reduction in interest.
Tension between the United States and Iran catapults oil
Oil prices rise by more than 2.5%, reflecting geopolitical tensions in the Middle East, particularly in Iran, which claimed to have crushed an American UAV. Iran, led by Hassan Rouhani, announced that he had destroyed an American spy drone circulating in Iranian airspace. This episode marks the magnitude of the political tensions felt in the Persian Gulf, a region providing one-third of the world's oil used. This is another episode of increased tension after the United States decided to send an additional 1,000 troops to the Middle East in the context of increased tensions with Iran.
The price of Brent, a barrel traded in London and reference to Portugal, increases by 2.64% to 63.45 dollars. West Texas Intermediate (WTI), traded in New York, gained 2.88% to $ 55.31.
Gold rises to 2013 highs
Gold is up and trading at the 2013 highs, taking advantage of the US interest rate environment. The Fed's position makes dollar investments less attractive as yields decline, which increases the appetite for gold. Precious metals are up 1.63% to $ 1,382.58 an ounce.
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