European actions reach historical maximum on Tuesday, promoted by a rebound in defense values in the expectation of An increase in military spendingwhile investors moved more capital to markets outside the US to avoid inflationary pressures derived from commercial tariffs.
The Stoxx 600 (.stoxx) passionate index reaches a historical maximum of 556.81 points, driven by an increase of approximately 1% in the defense and aerospace (.sxparo) sector, which had already risen almost 4.6% Monday before signs that Europe could make the limits to military spending more flexible.
In Wall Street, the S&P 500 reference index pointed to a session without great movements after the reopening of markets in the US. After a holiday, the futures indicated. This happened after a Federal Abogara official for delaying interest rate cuts.
The main inflation metrics in the US. UU. They follow at least half a percentage point above the objective of the Fed, while the uncertainty about Chinese competition in artificial intelligence weighs on the great technological technological ones that dominate US indices.
The flow of European actions
European actions registered their highest weekly investment flow since January 2023, according to Bank of America, partly because European indices have a strong weight in industrial values, which could benefit from the continuous economic growth of the United States.
“The idea is very simple: technological ones in the US are overvalued and Europe offers attractive value opportunities,” Florian Ielpo, multi-active portfolio manager at Lombard Odier Investment Managers explained. “That world of traditional economy now seems very attractive.”
However, the cost of indebtedness of Eurozone governments increased. The 10 -year German bonus yield, which moves inversely at its price, reached 2.51%, its highest level since January 31.
This happened after the president of the European Commission, Ursula von der Leyen, announced greater support to Ukraine, while the US backs.
“Pressures on Europe to substantially increase defense spending have climbed quickly in the last week,” The economist of Deutsche Bank Mark Wall pointed out in a client report.
The price of gold in cash rose 0.5% to $ 2,911.4 per ounce, while gold futures in the US Goldman Sachs will raise its precious metal price forecast at $ 3,100 by the end of the year.
Rally in China
In Asia, the Japan Nikkei Index (.N225) advanced 0.5%, with banking actions and the defense sector following the impulse of Europe.
The Chinese markets were promoted by an unusual meeting between President Xi Jinping and business leaders on Monday. The Hang Kong Hang Seng index (.
The technological index has risen more than 25% so far this year, driven by profits in artificial intelligence actions.
“I think China will be the winner in the AI race, as with electric cars,” Britney Lam, director of the family firm Lam Group, said, who highlighted China’s access to data, energy, talent and chips.
The Central Bank of Australia began its cycle of feat cuts on Tuesday, as expected, keeping the Australian dollar in 0.6356 dollars stable, while those responsible for monetary policy cautiously managed the possibility of new cuts.
The euro advanced 0.2% to $ 1,0455, with operators attentive to elections in Germany this weekend, which could lead to a fiscal stimulus to underpin the weakened economy.
The Japanese Yen weakened slightly up to 151.86 per dollar, although it remains in the strongest part of its recent rank, backed by solid growth data on Monday, which increased the expectations of a rates of rates in Japan in the coming months .
The sterling pound was negotiated around $ 1,2597, just below its highest level in two months, while investors waited for employment and inflation data later in the week.
On the other hand, OPEC+ would be considering delaying the monthly increase in the programmed oil supply to begin in April, despite Donald Trump’s calls to reduce prices, Bloomberg News reported Monday citing Fuentes.
The Brent crude rose 0.77% to $ 75.82 per barrel.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
