Start of bullish trading for the main European stock exchanges in the aftermath of the mixed close of Wall Street. In the first few minutes of trading, positive signs prevail with the Frankfurt Dax rising by approximately 0.6%, while the London Ftse 100 index and the Parisian Cac40 index gain 0.67% and 0.61% respectively. Under the lens of the market, the macro and quarterly data arrived yesterday from the United States. In particular, look at the latest US inflation data increased more than expected in September, putting pressure on the Federal Reserve (Fed).
The market can also be seen in the latest minutes of the Fed relating to the September meeting. The minutes revealed that the Fed could start reducing the amount of assets it buys each month as part of its quantitative easing program, thus launching tapering, starting in mid-November. The tapering could be initiated by reducing purchases of $ 10 billion for US Treasuries and $ 5 billion for mortgage-backed securities, for a combined amount of $ 15 billion per month. Currently, the Fed buys assets worth a total of $ 120 billion per month through its QE program.
At the macro level, after inflation and producer prices in China, today’s calendar includes the weekly update for the United States with unemployment subsidies, as well as producer prices and data on inventories and crude production. Focus also on the earnings season on Wall Street which, after the third quarter accounts of JP Morgan, today focuses on Bank of America, Citigroup, Morgan Stanley and Wells Fargo.