(CercleFinance.com) – The Paris Stock Exchange is expected to start on a weak note Tuesday morning, as investors wait for the next catalyst that could push the market higher.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – August delivery – fell 33.5 points to 7,295.5 points, confirming the scenario of a summer break for risky assets which had already emerged the day before. .
With the summer holidays and the end of the earnings season, markets could struggle to move higher in the coming days as investors seem tempted to curb their appetites rather than risk losing recent gains.
The CAC 40 is still up more than 13% since the start of the year, which reflects unequivocal optimism regarding the decline in inflation and the good resistance of economic activity.
The scenario for the second half of the year, however, looks uncertain, causing buyers to step on the brakes, but there is not much conviction on the selling side either.
With the corporate earnings season coming to an end, investors will have no choice but to look for another catalyst to support the market.
So far, of the 84% of S&P 500 companies that have released their quarterly results, 79% have reported earnings above expectations, compared to an average of 77% over the past five years.
Among those that will do so in the coming days are several leading groups such as Disney, Novo Nordisk, Siemens, Deutsche Telekom or Allianz.
With the end of the earnings season, stakeholders will also become more attentive to macroeconomic indicators.
If the agenda looks rather calm today, they will still learn during the morning of the final data on consumer prices in July in Germany, which had decelerated more than expected in preliminary figures.
But the real test is set for Thursday with the release of monthly US consumer price data, which may prove resilient given the recent upswing in energy prices.
As for government bonds, yields are stabilizing after rising sharply last week with the downgrading of US debt by Fitch.
The yield on ten-year Treasuries, which has been closely followed in recent days, remains above the 4% threshold but has fallen a little to return below 4.08%.
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