Wall St welcomes Powell's words, hopes for lower rates

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INCREASE OF WALL FINISHES

PARIS (Reuters) – The New York Stock Exchange ended Wednesday with the S & P-500 index, which for the first time briefly surpassed 3,000 points, hoping for a fall in rates this month after the latest statements. by the president of the Federal Reserve.

The Nasdaq and the Dow Jones also set session records after Jerome Powell, who spoke at his semi-annual Congressional hearing, reaffirmed the Fed's willingness to "act appropriately" to support growth, highlighting concerns about the international trade and the global slowdown, which "continue to weigh on the economic prospects in the US".

These statements strengthened the already well-integrated scenario of a quarter-point decline in the fed funds target on July 31 at the end of the bank's next monetary policy meeting. Central American

The Dow Jones index gained 76.71 points, or 0.29%, to 26.860.20 points, after a record of 2.983,45 in the session.

The broader S & P-500 took 13.44 points (0.45%) to 2.973.07 after scoring 3.002.98 in the session.

The Nasdaq Composite advanced 60.80 points, or 0.75%, to 8.202.53 points.

Wall Street briefly increased its earnings after the release of the minutes of the last Fed monetary policy meeting on 18 and 19 June.

Many of the Fed's central bankers said supportive measures would soon be justified if the risks to the US economy had not been mitigated and many others expressed an opinion to that effect.

It is likely that the issuing institution will reduce rates by a quarter point at the meeting on July 30-31, according to analysts at Bank of America Merrill Lynch. The downturns could also follow in the next two monetary meetings, they add.

Speaking after Jerome Powell, James Bullard, the president of the Saint-Louis Fed, once again pronounced a rate easing in front of slower growth than expected in the United States.

INDICATORS OF THE DAY

Wholesaler inventories in the United States increased in May, including a sharp rise in the automotive sector, but the pace of their growth slowed, suggesting that inventory build-up should weigh on economic growth. in the second quarter.

THE SESSION IN EUROPE

European stock markets closed lower on Wednesday and their day highs saw Wall Street reduce earnings after new records in response to statements by Federal Reserve Chairman Jerome Powell as a new step towards declining interest rates and favoring the dollar decline against the euro.

In Paris, the CAC 40, after spending part of the afternoon in the green, lost 0.08% (4.51 points), the fourth consecutive, to 5,567.59 points after a peak at 5,606.18. In London, the FTSE 100 lost 0.08% and in Frankfurt the Dax dropped by 0.51%.

The EuroStoxx 50 produced 0.23%, the FTSEurofirst 300 0.18% and the Stoxx 600 0.2% after gaining up to 0.37%.

The Milan Stock Exchange stands out with an increase of 0.73% at the end of the FTSE MIB index, thanks to the support of banking stocks.

THINGS TO LOOK FOR THURSDAY 11 JULY:

Inflation Day: Germany and France's final June figures will be published in the morning at 6:00 and at 6:45 GMT and those in the United States in the afternoon at 12:30 GMT.

Minutes of the June monetary policy meeting

the European Central Bank (ECB) at 11.30 GMT.

Jerome Powell, president of the Federal Reserve, continues his six-month congressional hearing before a Senate committee, having presented a committee of the House of Representatives the day before.

(With Caroline Valetkevitch, Gertrude Chavez-Dreyfuss, Wilfrid Exbrayat for the French service)

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