(CercleFinance.com) – The Paris Stock Exchange maintains its lead and the CAC40 shows a gain of +0.67% at the end of the session towards 7,330 (around 3 p.m., the index was close to 7,350) while Wall Street remains close to its opening levels with +0.5% on the Dow Jones, +0.2% on the S&P500.
The market is behaving as if certain operators were betting that Jerome Powell’s highly anticipated remarks at a press conference this evening would be more ‘dove’ than expected and would lean in favor of rate stabilization, just as strongly suggested by the ECB last Thursday.
At the end of two days of debate, the FOMC, the strategic committee of the American central authority, should choose to leave its interest rates unchanged and clarify its intentions and the expected trajectory of rates in the coming months.
Another element likely to influence the trend, oil prices are undergoing some profit taking while the OECD yesterday reported ‘unencouraging’ prospects for the world economy (downgraded by -0.2% by compared to the initial calculation).
The barrel of Brent remains close to $94.6, while American light crude (West Texas Intermediate, WTI) stabilizes at $90.9 after yesterday setting new highs in almost a year at nearly $92.
Crude oil stocks fell again last week (-2.1 million barrels) in the United States, as did those of gasoline and distillates (-0.88 million then -2.9 million respectively). ), the US Energy Information Administration (EIA) announced on Wednesday.
The refinery capacity utilization rate stood at 91.9%, still close to optimal.
This consolidation brings a halt to the rise in government bond yields, which had brought the German ten-year to a historic high since 2008 yesterday.
The Bund yield drops -3Pts towards 2.73% and the American ten-year yield shows the same decline at 4.317%, our OATs also show -3Pts at 3.237%.
It’s been 10 days since the security margin on the bond has been shrinking, reaching zero this week and specialists believe that it will take a good surprise for a slippage in rates not to drag the markets into an episode of stress, with American yields which could rocket towards the 4.50% mark.
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