Powell and Williams' comments reassure the European equity market that is expected to open higher. The Eurostoxx 50 opened at 4,112.33 points (+0.71%), the CAC 40 at 6,602.54 points (+0.51%), the DAX 30 at 15,603.24 points (+1.00%), the FTSE 100 at 7,062.29 points (+0.64%), the SMI at 11,995.63 points (+0.46%), the AEX at 723.77 points (+0.58%), the BEL 20  at 4,154.77 points (+0.41%), the IBEX 35 at 9,051.70 points (+0.23%), the DJIA at 33,876.97 points (+1.76%), the Nasdaq  at 14,141.48 points (+0.79%), the S&P 500 at 4,224.79 points (+1.40%) and the Nikkei 225 at 28,865.14 points (+3.05%).

As  for the change in the exchange rate from the close in New York, EUR/USD fell 0.10% to 1.1908, EUR/JPY also gave up 0.03%, or 131.47 while USD/JPY gained 0.09%, or 110.43.

In France, Vivendi is holding a highly anticipated general meeting on Tuesday. In particular, shareholders must vote on the proposed spin-off of UMG, which is scheduled to be listed on the Amsterdam Stock Exchange by 27 September at the latest. In addition, the shareholders' vote on the group's share buyback plan, which is not unanimous, is monitored. The two leading proxy advisors, Glass Lewis and ISS, recently recommended voting against the program.

European equity markets are expected to continue their rise on Tuesday, buoyed by Jerome Powell's reassuring comments on the US economy. Around 7:40 a.m., the CAC 40 futures contract gained 25 points, or 0.4%, according to data from broker IG Markets. The CONTRACT on the DAX 30 was up 45 points, or 0.3%, and the FTSE 100 contract was up 21 points, or 0.3%. Federal Reserve (Fed) Chairman Jerome Powell said Monday that job creation is expected to accelerate in the coming months in the United States and that recent inflationary surges should ease as the recovery continues. The Fed will continue to support the economy "as long as necessary", as long as the page of the crisis is not fully turned, added the leader, while some members of the Fed have evoked a possible reduction in bond purchases put in place for a little more than a year.

New York Fed President John Williams also said Monday he opposed a withdrawal of monetary support from the central bank. John Williams felt that the U.S. economy had not yet recovered sufficiently after the pandemic. After these remarks, Wall Street rebounded sharply on Monday, driven by industrial stocks after a turbulent week due to fears of inflation and tightening monetary policy. The Dow Jones Index (DJIA) closed up 1.8% to 33,876.97 points, and the broader S&P 500 index rose 1.4% to 4,224.79 points. The Nasdaq Composite advanced 0.8% to 14,141.48 points. Last week, the Dow Jones index saw its biggest percentage decline since the week ended Oct. 30.

LONG-term Treasury bond yields stabilize Tuesday morning, after a volatile session in New York that some strategists attribute to short positions, investors being forced to unwind their bets on a drop in bond prices. At 7:40 a.m., the yield on the ten-year Treasury bill, the market benchmark, stood at 1.492%, compared to 1.499% on Monday night. According to Oxford Economics, the Fed's strong influence in the bond market is not expected to abate, even as it begins to reduce its asset purchases. Oxford Economics points out that in the first quarter, the Fed owned 24.7% of the outstanding bond market, a share slightly down from 25.1% in the last three months of 2020. "This proportion is expected to remain close to 25% long after the Fed begins to cut back on purchases." Oxford Economics also says that foreign investors remain larger players in the US sovereign debt market than the Fed.

The euro retreats against the dollar on Tuesday morning after Jerome Powell's remarks. According to JPMorgan, the Fed's recent restrictive reversal is a bullish turn for the dollar after an undecided first half. "The Fed has removed the guarantee of stable monetary policy for several years, which has been critical to the market's pessimistic belief in the dollar since moving to an average inflation target ... The change in the Fed's reaction function is very clearly favorable to the dollar against low-yielding reserve currencies, whose monetary policy is firmly anchored by historically low inflation," the bank said. For its part, Goldman Sachs believes that the dollar will not appreciate in a sustainable way. In a scenario where markets continue to price in a tightening of the Fed's monetary policy, the euro could lose another 2% against the greenback if eurozone rates remain unchanged at the same time, the bank calculates.

Oil contracts are trading little Tuesday morning, after reaching their highest closing level since 2018 on Monday thanks to the weakening dollar and renewed risk appetite. The rise in oil continues, thanks to "positive news from all sides," said Manish Raj, chief financial officer of Velandera Energy. "The continued economic recovery after the pandemic and sustained demand growth are leading to tensions in the physical market," he said, adding that the outcome of Iran's presidential election "indicates that a nuclear deal with Iran, and therefore a growth in Iranian supply, remain out of reach." At 7:30 a.m., the August contract on North Sea Brent gained 15 cents, at $ 75.05 per barrel, and the same maturity contract on light sweet crude (WTI) listed on the Nymex was unchanged, at $73.12 per barrel.