(CercleFinance.com) – Small decline in gains on the Paris stock exchange (+0.3% against +0.6% around 4 p.m.) after an unsuccessful test of 7,150 points.
The CAC40 reflects the average gains observed in Europe on Wednesday, except for Amsterdam which stands out clearly with +1%.
The E-Stoxx50 is well ahead of the S&P500 (+0.1ù) while Wall Street sees its initial lead melt away (the Dow Jones falls back into the red, by -0.1%).
Investors remain relatively confident in an imminent ‘pivot’ scenario for the FED ahead of monetary policy decisions at the end of its strategic committee (FOMC) which ends this evening and which will be followed by a press conference eagerly awaited by its president, Jerome Powell.
The institution’s verdict is not in doubt given the evolution of the CME’s ‘FedWatch’, which suggests an almost certain rate hike of a quarter of a point, to which market participants attribute a probability of more than 86%.
The markets are especially waiting to know if the Fed will use a tone just as accommodating as during the bailout operations it recently conducted with the Treasury in order to protect the American financial system.
The solidity of the American economy, again attested yesterday by good indicators on the real estate market (first rebound in sales in 12 months), certainly pleads in favor of a tightening, but the fragility of certain banks militates for a more cautious approach. .
Investors will be particularly interested in its ‘dot plots’, which will reveal, as at the end of each quarter, its outlook for the final rate of 2023 and the years to come.
Its expectations could be sharply revised downwards and satisfy investors who would see the confirmation of an imminent ‘pivot’ in the policy of the central authority.
Few movements are to be expected between now and the publication of the Fed’s press release, especially since the start of the session promises to be poor in economic indicators.
The bond markets contrast with the serenity of the stock market indices, with a clear deterioration in yields: +12pts on our OATs this morning at 2.92%, +6pts this afternoon at 2.862%, the Bunds posted +7pts at 2.347% ( after an incursion below 2.00% this very Monday), the US T-Bonds remain unchanged at 3.60% (which does not support the Dollar).
The greenback continues to fall against the euro, to below 1.0800 (-0.3%).
In the news for French companies, Voltalia announces the signature, in Portugal, of a 15-year electricity sales contract with BA Glass Group, a European leader in the production of hollow glass for the beverages and food.
Crédit Agricole Consumer Finance announces the signature of an acquisition protocol with Stellantis of six European subsidiaries of ALD and LeasePlan, following the acquisition of 100% of the capital of LeasePlan by ALD, announced in January 2022.
Finally, Stellantis announced on Wednesday that its joint venture with Crédit Agricole has reached an agreement to acquire the activities of ALD in Portugal and LeasePlan in Luxembourg.
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