The Paris Stock Exchange is expected to decline slightly at the opening on Wednesday, the day after a record, with investors remaining focused on the American central bank in the hope of signals of easing of interest rates from the institution.
The futures contract for the flagship CAC 40 index fell by 0.09% around forty minutes before the opening of the session. On Tuesday, the CAC 40 closed up 0.11%, ending at 7,543.55 points. During the session, the index broke its absolute record (7,582.47 points) in points, without exceeding its closing peak.
On Wednesday, European indices should open higher in the wake of Wall Street’s close and a new annual record for the S&P 500, the Dow Jones and the Nasdaq, comments John Plassard, investment specialist at Mirabaud.
The markets quickly reacted to the prospect of seeing the peak in interest rates of the American central bank (Fed), exceeded, anticipating future cuts in key rates and a massive easing of financial conditions, details Kevin Thozet, member of the financial committee. investment in Carmignac, a prospect which pushed the stock indices into a race for records.
The trend could even continue if Fed President Jerome Powell leaves the door open for several rate cuts in 2024, following the meeting of the institution’s monetary committee which ends on Wednesday.
The vast majority of analysts expect rates to remain in the current range, between 5.25% and 5.50%.
The number of cuts planned for 2024 should be adjusted downward, but not as much as currently anticipated by the markets, believes Kevin Thozet.
The decision will be announced on Wednesday at 7:00 p.m. GMT in a press release published at the end of the FOMC meeting, which began on Tuesday and will be followed by a press conference by Fed Chairman Jerome Powell.
Among the values to follow
Pernod Ricard: the French wine and spirits giant has announced that it is launching the marketing of a whiskey made in its distillery in China and will gradually expand the distribution of this spirit throughout the country, according to a press release on Tuesday.