The streets of Europe are busy and attention is focused on US inflation

Europe’s main indexes will close the session at high levels, in a brief “rally”, before the United States inflation figures are released, which should provide clues about the future of the Federal Reserve, which will not be released. on defining monetary policy. .

The benchmark Stoxx 600 index rose 0.75% to 446.52 points, as the banking, oil & gas and travel sectors made higher contributions. Only two sectors remain this summer, or average and real estate.

Please note that the numbers are now increasing for the two US prices that will be announced at this third exhibition. Investors are optimistic about a “soft landing” of monetary policy in the North American economy, given its resilience. However, this sentiment is still under control, considering the possibility that the number will be higher than expected.

Morgan Stanley and JPMorgan differ in their expectations for a cut in the Fed’s director tax rate, according to notes accessible to Bloomberg. The first is to estimate larger cuts to be made in the next two years, while the second is to plan a larger number of cuts, of smaller size, and to be initiated later.

“More news coming from the immediate inflation report will become more likely in the next few weeks,” said Bloomberg analyst Florian Ielpo, of Lombard Odier Asset Management.

“The current ‘rally’ may still be viable, however, for this reason, we need to ensure that we live in a world where inflation will fall soon,” he explained.

Among Western Europe’s major indexes, Germany’s Dax rose 0.73%, France’s CAC-40 rose 0.6%, Italy’s FTSEMIB rose 1.48%, and Britain’s FTSE 100 rose 0.89% and Spain’s IBEX 35 ganhou 0.96 %. In America, AEX recorded an increase of 0.95%.