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Market: Trading volumes set to decline


(CercleFinance.com) – The Paris Stock Exchange should start without much change on Monday, the first session of a week cut short by the Thanksgiving holiday, after the slight gains made last week.

Around 8:15 a.m., the ‘future’ contract on the CAC 40 index – which has now switched to the December deadline – fell back by 21.5 points to 6618.5 points, announcing a calm start to the session.

Thanksgiving week is traditionally a quiet time for stock markets, which tend to move along the same lines as in previous weeks.

This year, the features are marked by a strong dollar, bond yields easing a bit and equity markets in rebound mode.

The trading week will be cut short by Thanksgiving, as Wall Street will be closed on Thursday and only reopen for half a session on Friday, suggesting reduced trading volumes.

Global stock markets are just coming off a strong performance, with markets showing a clear propensity to rebound on the good news about inflation and the gradual deconfinement in China.

The Paris Stock Exchange had thus ended Friday’s session with a gain of more than 1% to 6644 points, thus signing a weekly increase of 0.65%. Since the start of the year, the Parisian index has limited its decline to almost 7%.

‘As we approach Thanksgiving and the end of the year, the question is whether everything will be limited to a reduction in positions – which could manifest in many ways – or if the fear of missing the train of the rise (‘FOMO’) can encourage more investors to deploy their cash, which could keep the trends at work’, predict the BofA teams.

Problem, senior Fed officials have recently multiplied statements leaving little room for doubt about the continuation of monetary tightening.

Investors, who are still looking for catalysts to continue the recent recovery, will therefore keep an eye on the statistics, even if they are expected to be few in number in this lighter week.

Wednesday’s session will be particularly interesting from this point of view, with the publication of the latest PMI activity indices in Europe, durable goods orders and Michigan consumer confidence in the United States.

Market players also hope that the day of ‘Black Friday’, the day after Thanksgiving, will attract many customers to stores and reassure about the good resistance of American consumption.

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