(CercleFinance.com) – The Paris Stock Exchange should start down moderately on Tuesday morning, as investors find no new catalysts to push the CAC 40 up further, which has just had nine consecutive weeks of increases.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – delivery at the end of December – lost 13.5 points to 6685.5 points, announcing the start of the session in negative territory.
The participants seem to want to take a break after the good performances of the last few weeks, which have enabled the CAC to limit its decline since the beginning of the year to around 6%.
The Paris market had ended yesterday’s session on a decline of 0.7% to 6696 points, in the wake of the decline on Wall Street.
The New York Stock Exchange did indeed end sharply lower on Monday, as the better-than-expected ISM services index boosted fears of further rate hikes from the Federal Reserve.
At the final bell, the Dow Jones index yielded 1.4%, while the Nasdaq Composite dropped 1.9%.
Variations should remain limited on Tuesday in the absence of a major economic event or new elements in the prospect of an upcoming change in monetary tightening by the Fed.
In the United States, the first shifts in inflation figures and the deterioration of certain economic indicators have recently raised hopes of lower rate increases.
Beijing’s decision to ease health measures and relax its so-called ‘zero Covid’ policy also fueled market optimism, which translated into a return of risk appetite.
The approach of the decisions of the US Federal Reserve, scheduled for next week, could now limit positions.
The macroeconomic agenda looks thin on Tuesday with all the same the publication of industrial orders in Germany, which emerged seven times down over the first nine months of the year.
Investors will then learn about the US trade balance, which should have widened in October due to the rise in the energy bill.
On the bond compartment, consolidation prevails ten days before the last meeting of the year of the Fed.
The yield on 10-year Treasuries rose to almost 2.60% on fears over a strong ISM indicator casting doubt on the scenario of a rapid easing of US monetary policy.
The yield on the Bund of the same maturity, the benchmark rate for the euro zone, followed the movement and advanced by two basis points to 1.90%.
US light crude rose 1% to 77.7 dollars a barrel, still driven by OPEC+’s decision not to change its current production targets and the boycott of Russian oil and diesel. North Sea Brent gained 0.9% to 93.5 dollars.
The euro reversed steam and lost another 0.1% against the dollar, at 1.0480.
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