PARIS (Reuters) – The main European stock markets are moving in the green on Wednesday morning, but the weakness of the gains reflects a certain caution before the monetary policy statement from the American Federal Reserve (Fed) which will be published at 6:00 p.m. GMT.
In Paris, the CAC 40 gained 0.06% to 7,286.65 points around 07:30 GMT. In Frankfurt, the Dax gained 0.48%, thanks to the rebound in semiconductors, with Infineon for example gaining 1.73%.
In London, the FTSE 100 advanced even more clearly, by 0.57%, after the publication of inflation figures which recorded a surprise slowdown in August year-on-year (+6.7%). This could encourage the Bank of England (BoE) to opt for the status quo on its rates on Thursday while such a decision now has a probability of 45% compared to 20% on Tuesday.
The EuroStoxx 50 index increased by 0.21%, the FTSEurofirst 300 by 0.17% and the Stoxx 600 by 0.31%.
Futures contracts on Wall Street foreshadow a stable opening for the Dow Jones, the Standard & Poor’s 500 and the Nasdaq the day after a session in the red marked by the rise in ten-year US bond yields, to a peak of 16 years.
At the end of two days of meetings, the decisions that the Fed could take hardly raise any questions in the short term. Traders are counting with a 100% probability on a pause this Wednesday in the rise in fed funds rates, currently at 5.25%-5.50%, and with a 74% probability on a new status quo during of the November meeting.
The uncertainties concern the timing of a possible rate cut and the economic projections of Fed officials while the market wants to believe in the scenario of a soft landing for the American economy in view of recent published data.
On the stock market, the energy compartment (-1.06%), the only sectoral decline in the Stoxx 600, slows down the progression of the indices, Brent oil returning from a ten-month high after approaching the threshold of 100 dollars per barrel in fear of a supply deficit at the end of the year.
In individual values, LVMH fell 0.73%, Jefferies having lowered its recommendation on the luxury group to “hold”. Kering and Moncler fell by 1.08% and 1.14% respectively, the two values having also been downgraded by Jefferies due to doubts about the evolution of Chinese growth.
Société Générale (+0.90%), which recorded a “black Monday” then a decline on Tuesday, is struggling to recover from the presentation of its 2026 strategic plan.
Commerzbank, which said it expected to generate net interest income of 8 billion euros this year, advanced 1.2%.
(Written by Claude Chendjou, edited by Blandine Hénault)
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