The Paris Stock Exchange opened 0.55% higher on Tuesday as the US Federal Reserve (Fed) begins two days of meetings with markets awaiting a break for rate hikes.
Around 9:45 a.m., the flagship CAC 40 index rose by 53.66 points, or 0.74%, 7,304.01 points, after an increase of 0.52% on Monday.
Last week the stock market had lost 0.79%, already pending announcements from central banks.
US inflation data is expected today as the Fed begins its two-day monetary policy meeting, said Swissquote Bank analyst Ipek Ozkardeskaya.
Investors mostly expect the Fed to pause in its policy of monetary restraint aimed at bringing inflation back to around 2% a year. After ten consecutive increases in its main rate, the US monetary institution should announce a break in June, before a potential new increase in July, according to analysts.
It is in this context that a major American inflation indicator, the CPI, will be published at 2:30 p.m. GMT.
US inflation is expected to have eased from 4.9% to 4.1% in May, and core inflation – which excludes food and energy – is expected to ease from 5.5% to 5.3% , estimates the analyst of Swissquote Bank.
The European Central Bank will hold a meeting on Thursday, followed by the Bank of Japan on Friday.
The Bank of Japan is unlikely to announce a rate hike, but the score is different on the ECB’s side. The European institution should again raise its own, while signaling that it does not intend to stop there, even if inflation is falling and if the euro zone has entered into recession.
China’s central bank surprised on Tuesday by cutting its short-term key interest rate from 2% to 1.9%, a measure intended to support activity in the context of a loss of steam post-Covid in the second world economy. .
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