The Paris Stock Exchange should open slightly higher on Tuesday, in a session which promises to be busy with European economic indicators and which will see the start of the meeting of the American central bank.
The futures contract for the flagship CAC 40 index advanced by 0.22% around forty minutes before the opening of the session. On Monday the Parisian rating fell by 0.29% to 8,065.15 points.
For April, the main index of the Paris Stock Exchange at this stage shows a decline of 1.71%, the first after a series of five consecutive months of increase.
Among the countries of the euro zone, Germany, Italy, Spain, Austria and Portugal will publish on Tuesday the first estimate of the growth of their gross domestic product in the first quarter.
As for France, GDP grew by 0.2% in the first quarter of 2024, supported by household consumption and business investment. Household consumption increased by 0.4% in March compared to February.
Figures very slightly above the estimates of analysts surveyed by Factset.
Aggregated data at the euro zone level concerning GDP for the first quarter and inflation for the month of April will be published at 11:00 a.m.
In addition to these statistics, investors’ attention will focus on the meeting of the monetary policy committee of the American Federal Reserve (Fed) which begins on Tuesday and will culminate in a press release and a press conference on Wednesday.
If no rate cut is expected, it is obviously Jerome Powell’s comments that will be scrutinized like milk on fire, comments John Plassard, investment specialist for Mirabaud.
At the start of the year, markets expected up to six key rate cuts from the Fed in 2024 starting in March, but they have largely revised these forecasts and now only expect one or two key rate cuts and not before september.
While inflation remains more stubborn than expected, (economists) wonder if these declines will not be delayed, or even completely canceled, underlines John Plassard.
On a microeconomic level, investors will digest the new burst of results published by companies.
Values follow
Stellantis: the automobile manufacturer announced a turnover down 12% year-on-year in the first quarter, held back by lower sales of its aging models and clearance operations.
Thales: order intake for the defense and technology group jumped 47% in the first quarter, to 5 billion euros, driven by defense activities.
Capgemini: the French IT group announced a turnover down 3.5% in the first quarter, to 5.6 billion euros, due to a less dynamic market, but maintains its objectives of slight growth for 2024.
Air France-KLM: the group widened its loss in the first quarter, 522 million euros compared to 344 million in the first three months of 2023, affected by rising costs, geopolitical tensions and the fall in freight revenues, announced Tuesday the company. The company nevertheless maintained its annual financial targets and reported strong bookings for the summer peak.