Consequently, the Parisian index is now moving close to equilibrium, around 6385 points, a few hours from the long-awaited speech by Jerome Powell, the president of the American Federal Reserve, scheduled for 4 p.m.
Many investors should choose to stay away from the markets pending his intervention.
Since March, the central bank has been carrying out its most aggressive tightening since the Volcker era in the early 1980s. In four meetings, its rates were raised by 25 basis points, then 50 points before two increases of 75 points basic each.
Much has been said recently by members of the Fed that the institution intends to go further in the process and Jerome Powell could well signal today that a restrictive approach is still necessary in order to reduce inflationary pressures.
‘The inflation rate remains far too high to reassure the Fed’, recall the teams of Oddo BHF.
After their upturn the day before, Treasury bill yields are stable pending Powell’s speech, with 10-year Treasuries holding around 3.03%.
The yield on the 10-year German Bund, the benchmark on the bond market in Europe, eased slightly but remained close to 1.31%.
On the foreign exchange market, the dollar, which had benefited in recent days from the prospect of monetary tightening by the Fed, is moving forward again before Powell’s intervention and is back below the parity threshold against the euro.
Oil prices continue, for their part, to evolve upwards, around 93.4 dollars for American light crude (West Texas Intermediate, WTI), maintaining the gains acquired this week with the announcement of a new drop American stocks.
In the ranks of statistics, market players will learn today of the spending figures of American households and then of the Michigan consumer confidence index.
In the news of values, last night Plastivaloire published a turnover of 179.6 ME for the 3rd quarter, up 10.8% constant exchange rate compared to the same period a year earlier (or + 11.6% in published data).
TotalEnergies formally denied on Friday press reports according to which the French oil group would produce kerosene for the Russian army. “It is clear that certain media allegations and calls to investigate the activities of TotalEnergies in our joint ventures have absolutely no basis in fact,” the group said.
Lacroix publishes a turnover of 173.2 million euros for the second quarter of 2022, an increase of 36.2% in annual comparison, thus marking an acceleration compared to the first quarter (+ 29.4%) .
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