The Paris Stock Exchange is expected to fall at the opening on Wednesday, the day of the publication of the minutes of the discussions of the last meeting of the American Federal Reserve (Fed) which continues to send signals towards a brutal tightening of its policy monetary.
The futures contract for the CAC 40 index fell by 0.35% around forty minutes before the opening of the session. The day before, it had fallen by 1.28% to 6,645.51 points.
The fight against inflation, at its highest for forty years in the United States as in Europe, returned to the fore on Tuesday with statements by Lael Brainard, a governor of the Fed, usually a supporter of an accommodating monetary policy.
On the contrary, this time she said that the US central bank should be ready to act more strongly against inflation and called for a reduction in the Fed’s balance sheet at its next monetary meeting in May.
Investors fear that in seeking to rein in inflation, the Fed is overdoing it and acting too aggressively, causing economic activity to slow down to the point of a recession, observes Michael Hewson of CMC Markets.
Market players will be able to obtain further information on the Fed’s posture when the minutes are published, the minutes of the last meeting of the institution’s monetary policy committee, after the close of European markets.
In particular, they will seek indications on how the war in Ukraine may have tempered the policy of the institution during its meeting in March, even if it raised its key rates for the first time in four years, explains Mr. Hewson.
The publication also does not make the markets forget the Ukrainian conflict, with new sanctions against Russia being debated within the European Union, after the recent discovery of numerous Boutcha corpses, near kyiv.
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Finally, the French presidential election may also push investors to be cautious in their exposure to the Paris market, which, like Tuesday, should decline a little more than the other European stock markets.
Among the values follow Wednesday
EDF: the electrician has completed its capital increase of more than 3.1 billion euros – including 2.7 billion contributed by the state – with an operation oversubscribed by nearly 130%.
Nexity: a search was carried out on Tuesday at the prefecture of Orleans as part of an investigation by the national financial prosecutor’s office (PNF) into suspicions of illegal taking of interest targeting the prefect of the Center-Val de Loire region, concerning a project real estate Montargis (Loiret) developed by the former employer of the prefect, the developer Nexity.