The Paris Stock Exchange should open slightly lower on Wednesday, with investors mainly awaiting the publication on Thursday of figures on American inflation which are crucial for the direction of the monetary policies of central banks.
The futures contract for the flagship CAC 40 index was down 0.28% around forty minutes before the session opened. On Tuesday, it ended down 0.32%, finishing at 7,426.62 points.
European indices should open lower this morning in the wake of the New York close, with investors taking some profits before American inflation statistics, estimates John Plassard, investment specialist for Mirabaud.
Thursday’s publication of the Consumer Price Index (CPI) in the United States for December should constitute the main trend factor for the rest of the month, confirms Stephen Innes, partner at SPI Asset Management, who therefore predicts a potentially calm Wednesday on the markets.
These figures on American inflation will in fact be decisive in the decision of the American Federal Reserve (Fed) whether or not to quickly lower its key rates.
After a year and a half of multiple increases in their rates, central banks largely put a stop to this movement at the end of 2023 and investors then convinced themselves that the first reduction would arrive in March, followed by many others.
But they admitted at the start of 2024 that they had moved a little hastily and adjusted their expectations regarding the Federal Reserve’s first rate cut, subtly reducing bets on an effective pivot at its March meeting, explains Stephen Innes.
In this context, the figures published on Thursday are eagerly awaited, allowing us to see more clearly the timing of the Fed’s first rate cut.
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