The Paris Bourse should continue in the green on Wednesday pending the US consumer price index, inflation being a major issue for the markets because of its consideration in the choice of monetary policy.
The futures contract for the CAC 40 index rose by 0.80% around forty minutes before the opening of the session, the day after a technical rebound of 0.51% following four consecutive sessions in the red.
The New York Stock Exchange, for its part, ended in scattered order on Tuesday, deprived of a real rebound after statements, judged aggressive, by an official of the American Federal Reserve (Fed).
“European indices are expected to open slightly higher this morning ahead of the release of US inflation data for April which may indicate that the peak (of inflation) may be behind us. However, above 8.5% could cause investors to fall back into their tracks and the indices to lower annual levels.
The first estimate of the consumer price index in the United States in April is expected in the afternoon as US President Joe Biden assured Tuesday that “inflation (was his) biggest national priority”, as rising prices weigh on American households and its popularity as the midterm elections approach. Economists expect lower inflation for April after a level not seen since the early 1980s the month before. “It will be painful. But it should not fundamentally change the trajectory of US monetary policy,” said Christopher Dembik, director of macroeconomic research at Saxo Bank.
To curb inflation, the Fed raised its main interest rate by a quarter of a percentage point in mid-March, then by an additional half a percentage point on May 4, the first tightening of this magnitude since 2000.
Further increases of half a percentage point could come in the next two meetings, mid-June and late July.
On Tuesday, the president of the New York branch of the Fed, John Williams, estimated that the institution should raise its rates “rapidly” by the end of the year and the president of the branch of Cleveland of the Federal Reserve, Loretta Mester, even said she was open to raising the key rate by 0.75 percentage points.
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Inflation, which has been sending cold sweats to all markets for months, accelerated more than expected in China in April, where the consumer price index rose by 2.1% over one year against 1 .5% a month earlier.
Values follow
Alstom: the group recorded a net loss of 581 million euros in its staggering 2021/22 financial year, penalized by a depreciation of its stake in the Russian rail manufacturer Transmashholding and accounting losses linked to the acquisition, in early 2021, of Bombardier Transport .
Eiffage: the construction giant saw its activity grow strongly in the first quarter, in works as well as in concessions, particularly motorways. Its turnover increased by 10%, to 4.37 billion euros.