(CercleFinance.com) – The Paris Stock Exchange should start without much change on Thursday morning, in a climate of caution that affects European and American markets despite the relief aroused by the Polish file.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – delivery at the end of November – gained 18.5 points to 6627 points, announcing a very slight rise in the opening.
The positive trend that carried the Paris market for nearly a week had dissipated yesterday at the end of a session mainly marked by the fall of a Russian-made missile on Poland.
After a favorable start to the week, the CAC began a break to finally yield 0.5% to 6607 points, geopolitical factors having limited investors’ appetite for risk.
The New York Stock Exchange also lost ground on Wednesday on unfavorable retail sales, weak corporate results and comments from several senior Fed officials.
John Williams, the chairman of the Federal Reserve of New York, thus reaffirmed the commitment of the Fed to continue the tightening of the monetary policy initiated by the central bank despite the risk of an economic slowdown, remarks also relayed by Mary Daly, the president of the San Francisco Fed.
Profit-taking particularly concerned technology and energy stocks.
At the final bell, the Dow Jones yielded 0.1% while the Nasdaq Composite dropped more than 1.5%.
While waiting to learn more about the evolution of the Fed’s monetary policy, investors should play it safe by favoring safer assets, against a backdrop of geopolitical risk, and before the publication of new indicators.
The market awaits the publication, this afternoon in the United States, of the figures for housing starts and building permits, registrations for unemployment benefits and then the Philadelphia Fed index.
In Europe, the latest data on consumer prices in the euro zone for the month of October will be unveiled.
If the general trend seems to remain favorable to equities, market operators will keep a close eye on upcoming geopolitical events and should not increase their risk taking in the immediate future.
This uncertainty could lead investors to be cautious regarding a market that has risen sharply in recent weeks. Since the end of September, the CAC 40 has posted an increase of around 17%.
Investors know that this autumn rally can only be confirmed if inflation continues to fall, paving the way for a slowdown in rate hikes by the major central banks.
Otherwise, the stock markets could well stumble again.
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