Wells Fargo climbed almost 5%as banks expect to benefit from the rate hike, while sportswear giant Nike advanced around 4.5% after beating expectations for quarterly earnings.
Fed Chairman Jerome Powell said on Monday the US central bank could move “more aggressively” to raise rates and fight inflation, possibly by more than 25 basis points at once.
In this frame, the 10-year Treasury bond yield was trading at 2.375%, after hitting its highest level since 2019.
RBC Capital Markets’ Tom Porcelli wrote in a note to clients that during Powell’s speech on Monday “it was easy to wonder if a 75 basis point hike or even rate hike is possible in the intervening period between meetings.” of the Fed”.
“Both of these scenarios seem incredibly extreme, but when we heard Powell talk about inflation, we found him extremely anxious,” he added.
Yields on euro zone government bonds also rose and the yield on German 10-year notes traded at 0.512%, its new highest since 2018.
For their part, the stock markets in Europe also recorded gains. Among the main stock markets of the “old continent”, a rise of 1.2% in the CAC 40 of Paris stands out.
Meanwhile, the MSCI World Stock Index, which includes gauges in 50 countries, was up almost 1% on the day.
Oil prices fell more than 1%, the dollar index was stable at 98.48 and spot gold fell 1.1% to $1,914.40 an ounce, pressured by the boss’ aggressive approach. from the Fed to curb inflation.
Source: Ambito
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