The Cac 40 calmly awaits its meeting with the Fed


The Cac 40 is very erratic on Wednesday, evolving not far from its closing levels of the day before, pending the most important meeting of the day. It is nevertheless scheduled at 8 p.m., Paris time, for the publication of the minutes of the last monetary policy meeting of the Federal Reserve, that of May 4, which resulted in an increase of half a point from fed funds, now in the range of 0.75% to 1%. Until then, the initiatives are very limited. In the middle of the day, the flagship index nibbles 0.2%, to 6,265.64 points, in a meager trading volume of less than 700 million euros. In New York, contracts future are also almost flat.

Rate hike

Basically, the operators live from day to day, with the same obsessions in mind, those of a slowdown in the economy, or even of the onset of recession, of this inflation which comes to plague the margins of companies and, for try to counter it, interest rate hikes in the viewfinder.

In the United States, as we know, it will be half a point, at least, for the next two FOMC sessions in June and July. In the eurozone, the ground is being prepared for the ECB’s deposit rate, currently at -0.5%, to go back to zero or ” slightly above of this level by the end of September. ” We will most likely move into positive territory at the end of the third quarter “said the president of the institution Christine Lagarde during an interview with Bloomberg TV. But the most “hawkish” members of the institution would like a rapid increase of 50 basis points.

“The market must do the job of the Fed”

If the Fed doesn’t do its job, the market has to do the Fed’s job, and that’s what’s happening right now, taking the leadsays hedge fund manager Bill Ackman. The only way to stop inflation is through aggressive monetary tightening or via a collapse of the economy “. Two prospects which, of course, are likely to weigh on stock market prices. Today’s economic agenda focuses on the United States. Apart from the Fed’s minutes, April’s durable goods orders are expected at 2:30 p.m.

Few significant variations to report within the values. Note, however, that if Air France-KLM recovers 6% after its 20% drop the day before linked to the announcement of a capital increase of 2.25 billion euros, Sodexo, he lost almost 5%. The collective catering group waives a minority sale of its Benefits and Rewards division, the operation not being considered sufficiently value-creating. This is not a good signal sent back to the market, according to the firm Oddo BHF.

TotalEnergies’ AGM disrupted

TotalEnergies held its general meeting of shareholders this morning. It was disrupted by climate activists, who blocked access to the Salle Pleyel in Paris. The GA was nevertheless able to begin, with very few participants. Prior to this meeting, the company announced the acquisition of 50% of Clearway Energy Group, the fifth player in renewable energies in the United States. It brings the total capacity of TotalEnergies in renewable energies to more than 25 gigawatts in the country.

Five other Cac 40 companies are also holding their general meeting this Wednesday: Publicis, EssilorLuxottica, Saffron, Great and Renault.




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