(BFM Bourse) – The CAC 40 lost another 0.73% at mid-session, posting a sixth consecutive decline. The market remains feverish as the US Federal Reserve begins a monetary policy meeting on Tuesday which will end tomorrow evening.
Investors remain very cautious before the start of the US Federal Reserve (Fed) monetary policy meeting on Tuesday. And the CAC 40 remains feverish, yielding 0.73% to 6,017.50 points. The flagship index of the Paris Stock Exchange is on track for a sixth consecutive session in the red.
“The start of the week has been quite volatile and it is unlikely that this will subside in view of what awaits us in the coming days,” said Craig Erlam of Oanda. “Central banks are lined up this week to make big rate hikes as the desperate fight against inflation continues,” he continued.
On Wednesday, the Fed’s decision will take center stage. For now, the market expects 82% on a rise of 75 basis points (0.75%) and 18% on a rise of 100 basis points or 1%, according to the CME’s FedWatch tool. Group.
“Such a decision [celle de 75 points de base, NDLR] would put the Fed’s benchmark interest rate in a target range of 3% to 3.25%, the highest since January 2008”, notes John Plassard, investment specialist at Mirabaud. “However, we will not focus only on the evolution of the rates. Indeed, the issue of the Fed’s balance sheet will also be one to watch. Since June, the Fed has let $47.5 billion worth of Treasuries and mortgage-backed securities off its balance sheet at maturity.
A farandole of central banks
And after the Fed will come Thursday a procession of other central banks, namely the Bank of England, the Swiss National Bank, the Norges Bank (of Norway), the South African Reserve Bank (of South Africa) and the Bank from Japan. For the latter, discussions should focus more on the weakness of the yen.
On the other markets, the euro lost 0.2% against the dollar at 1.0007 dollar. Oil contracts are changing little. The November contract on Brent North Sea rose 0.1% to 92.12 dollars while the WTI quoted on the Nymex for delivery in November fell 0.4% to 85.04 dollars.
As for values, the stock market operator Euronext fell by 4.8%. The title suffers from the influence of Credit Suisse which lowered its advice from “outperformance” to “neutral”, because the bank sees adverse winds affecting the group’s volumes on the equity markets while it does not perceive a catalyst to short term.
Groupe Gorgé for its part fell by 8.6% after publishing degraded half-year results, penalized by certain discontinued activities.
At the other end of the spectrum, FDJ gained 2.4%, the market appreciating the announcement of the acquisition of ZeTurf which allows the gambling operator to add a string to its bow by entering the online horse racing.
Julien Marion – ©2022 BFM Bourse