(CercleFinance.com) – The Paris Stock Exchange should continue to rise on Tuesday in early trading against a backdrop of falling bond yields, while investors await several important indicators that will allow them to better understand the Fed’s intentions.
Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – September delivery – gained 34 points to 7374 points, suggesting a new opening in the green.
Operators are currently torn between, on the one hand, the prospect of an end to the rate hike cycle, particularly in the United States, and, on the other, the signs of a slowdown in the global economy. .
The Parisian market had managed to win 1.3% to 7324.7 points yesterday, but technical analysts highlight a momentum for the moment insufficient to put the CAC in an upward trend.
‘It could be that the monthly close on Thursday will put an end to this indecision’, predict the Kiplink Finance teams.
The week will indeed be animated by several leading indicators, which will certainly fuel the ongoing debates on the evolution of monetary policy.
The markets will take note, on Thursday, of the first estimate of the consumer price index in the euro zone for the month of August, which should confirm the trend of disinflation in the region.
The publication, the following day, of the monthly report on employment in the United States will be the other major macroeconomic event of the week.
The only indicator on the menu of the day, the Conference Board’s consumer confidence index, which will be released in the afternoon, will measure the impact of the recent rise in gasoline prices on the morale of American households.
In the meantime, the yield of ten-year US Treasuries continues to decline towards 4.21%, after returning last week above 4.36%, a first since 2008.
Reassured by the decline in rates, the New York Stock Exchange ended up on Monday, thanks to the implementation of stimulus measures in China having alleviated fears around the global economy.
Investors also reacted to recent comments by Jerome Powell, who on Friday highlighted a slowdown in inflation, which could signal an upcoming moderation in Fed policy.
The Dow Jones index gained 0.6% and the Nasdaq 0.8%. The S&P 500 rose for its part by 0.7%, aligning a second consecutive session of increases, which had not happened to it since the end of July.
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