European equities trade at record highs as Fed confirms flexible policy stance

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On Thursday, European stocks were on track to rebound to an all-time high, as stocks around the world continue to benefit from reopening economies, fiscal stimulus and loose monetary policy. The Stoxx Europe 600 SXXP, + 0.31% in morning stock traded 0.4% higher at 436.03, above the closing record of 435.26 set only on Tuesday.

The German DAX DAX, + 0.05% has also been dancing close to the records, while the UK’s FTSE 100 UKX, + 0.20% and the French CAC 40 PX1, + 0.49% are between 11% and 13% down. below all-time highs. It was the first opportunity for European traders to react to the minutes of the last Federal Reserve meeting, where central bankers in the world’s largest economy made it clear that they were in no rush to slow down the pace of bond buying. “The Federal Reserve is in no rush to end its ultra-accommodative monetary support. That is the conclusion of the latest minutes of the Federal Open Market Committee meeting in March, which means that we did not learn anything new, ”said Hussein Sayed, chief market strategist at FXTM. US stock futures ES00, + 0.35% NQ00, + 0.77% pointed higher, and the 10-year Treasury yield TMUBMUSD10Y, 1.657% was 1.66%. Those gains came amid signs that the Biden administration was open to compromising its infrastructure spending plan and, in particular, its plan to raise corporate taxes from 21% to 28%. Europe’s own fiscal stimulus plan, the European Union’s 750 billion euro Next Generation plan, has yet to be ratified by all 27 national parliaments, with a German constitutional court among the obstacles. Of stocks moving in Europe, Johnson Matthey JMAT, + 3.23% jumped 6%, after the chemicals maker and metals refiner said increased activity in automobiles and other key end markets and cost control will mean Adjusted operating profit at the upper end of the Consensus from £ 405 million to £ 502 million. Johnson Matthey also said it is conducting a strategic review of its healthcare business. Anglo American AAL, + 1.31%, was up 3% after saying it plans to spin off its thermal coal business, which will be listed in Johannesburg and London. In a nod to investors sensitive to environmental issues, the metals giant said Anglo American shareholders had a “diverse range of views regarding thermal coal and therefore provides shareholders with of Anglo American, including those with specific investment criteria, the option to act on those views. “Gerresheimer GXI shares, -2.60%, fell 3%, after the manufacturer of the vials of The COVID-19 vaccine will confirm its earnings and revenue outlook, following a 33% increase in first quarter earnings per share with a 3% increase in organic revenue.