(BFM Bourse) – The CAC 40 advanced sharply at the end of the morning on Monday as the market continued to digest the message sent by the President of the Fed to Jackson Hole. China has reduced taxation on stock market transactions, allowing Chinese indices to end up sharply.
The Paris Stock Exchange is starting the week on the right foot. The CAC 40 won 0.55% to 7269.46 points late Monday morning, while the market is still digesting the messages sent by the Chairman of the Federal Reserve (Fed), Jerome Powell, on Friday.
The US central banker and his eurozone counterpart, Christine Lagarde, both spoke at the Jackson Hole symposium.
“At the long-awaited Jackson Hole conference (the Fed’s big annual conference) this weekend, Powell (Fed) and Lagarde (ECB) gave no clear indication as to whether they would raise their rates again in September, although they reaffirmed the need to keep rates high for a while.This contrasts with the conference last year, during which all the central bankers had warned that they were going to rise sharply their rates to fight inflation”, deciphers Xavier Chapard of LBPAM.
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China as support
“In this context, the next macroeconomic data will be closely scrutinized to decide whether the last rate hikes are necessary by the end of the year,” he continues.
Risk appetite on Monday is mainly driven by China. Beijing has decided to reduce the stamp duty on domestic stock exchange transactions by 50% while announcing a relaxation of the rules relating to residential real estate loans.
Which lifted the Chinese indices, with Hong Kong’s Hang Seng gaining nearly 1% while the Shanghai Composite rose 1.1%.
As for values, almost all of the CAC 40 is moving in the green, with the notable exception of Engie (-0.2%).
Valneva gains 1.8% after publishing positive adolescent safety data for its chikungunya vaccine candidate.
On other markets, the euro advanced 0.06% against the dollar to 1.0803 dollars. Oil prices are moving up a bit. The contract on Brent from the North Sea for delivery in October takes 0.3% to 84.18 dollars a barrel while that of the same expiry on WTI listed in New York wins 0.4% at 80.18 dollars the barrel.
Julien Marion – ©2023 BFM Bourse