(BFM Bourse) – The CAC 40 ended the session up 0.21% on Friday and is gaining ground throughout the week. The Fed Chairman’s toughness on inflation slowed the market’s rise.
Jerome Powell prevents the Paris Stock Exchange from ending the week on a rise that is too sharp. The CAC 40 thus ended this Friday’s session with an increase of 0.21% to 7229.60 points. Over the week as a whole, the Parisian index advanced by 0.91%, a gain which is far from compensating for its fall of 2.4% in the previous week.
However, Jerome Powell did not change his speech or reserve any big surprises during his opening speech at the Jackson Hole symposium on Friday. The chairman of the US Federal Reserve (Fed) said that although it has passed its peak, inflation in the United States “remains too high”
“We stand ready to raise rates further if necessary, and we intend to keep our policy restrictive until we are confident that inflation is sustainably approaching our target,” the banker continued. central, assuring that the Fed maintained its objective of 2% inflation.
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Markets still in limbo
“Jerome Powell underscored the FOMC’s commitment to data dependency in his Jackson Hole speech today, but there is no evidence that signs of economic resilience have already prompted Fed officials to revise their rate outlook upwards,” notes Capital Economics. “We continue to believe that a sharper-than-expected decline in core inflation will convince the Fed to cut rates significantly next year,” the think tank continued.
“Jerome Powell makes the economic situation (…) while we expected him to give more structural orientations on his perception of the economy and on the response of the Fed. This will not reduce the uncertainties on the markets”, has on his side writes on X (formerly Twitter) Philippe Waechter, Chief Economist of Ostrum Asset Management.
“Jerome Powell has spoken and I don’t think we can be too surprised by what has been said,” judge Craig Erlam of Oanda. “While this has caused some volatility in the markets, I don’t think it really deviates from what has been said previously,” he adds.
JCDecaux at the top of the bill
Although unsurprisingly, the firmness displayed by Jerome Powell was enough to support bond yields, with the rate on the two-year US Treasury bill standing at 5.076% against 5.014% on Thursday evening.
As for values, JCDecaux stood out, taking 3.2% thanks to an increase in the recommendation from Deutsche Bank to “buy” against “hold” previously.
Nanobiotix gained 7.1% as Jefferies resumed long hedging on the stock.
On other markets, the euro lost 0.3% against the dollar at 1.0799 dollars, the greenback benefiting from Jerome Powell’s speech. Oil contracts are gaining ground. The October contract on Brent from the North Sea rose 1% to 83.30 dollars a barrel, while that of the same term on WTI listed in New York rose 1.2% to 80 dollars a barrel.
Julien Marion – ©2023 BFM Bourse