The Paris Stock Exchange was up slightly by 0.35% on Wednesday, welcoming the US central bank’s inflation-fighting efforts with optimism and regaining some stability after three weeks of high volatility.
The CAC 40 index rose 23.44 points to 6,682.85 points at 9:50 a.m. The day before, it had finished up 1.17%.
Wall Street also posted strong gains on Tuesday, with analysts believing the market may have bottomed out earlier, which would explain the rise despite the lack of any real good news.
The Tokyo Stock Exchange even closed on Wednesday with a jump of 3% and experienced its seventh consecutive session in the green.
In the bond market, US borrowing rates have been climbing since the beginning of the week, after a speech by Federal Reserve (Fed) predictor Jerome Powell, who showed determination to fight inflation.
According to John Plassard, investment specialist at Mirabaud, investors have become aware that the American monetary institution takes arm the body the problem of galloping inflation in the United States.
And for the markets this seems to be good news, with inflation being at its highest for 40 years in the United States and a peak for 30 years in the United Kingdom, this threatens both the purchasing power of households, the profits businesses and therefore the overall health of the global economy.
Especially since the soaring prices of raw materials, a consequence of the Russian-Ukrainian conflict, could make the situation worse.
Investors will learn on Wednesday of various production indices in Europe and the United States. They will also monitor the speeches of Jerome Powell and another member of the American central bank.
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On the conflict between Russia and Ukraine, Westerners will meet in Brussels on Thursday for NATO, G7 and European Union summits and are expected to announce new sanctions against Russia, according to Jake Sullivan, security adviser National Joe Biden. They could also strengthen those that already exist.
Christopher Dembik, director of macroeconomic research at Saxo Bank, assures that the Europeans seek to sanction Russian oil, advancing several possible options including a sharp increase in taxes on Russian oil imports.
TotalEnergies stops Russian oil
The French group TotalEnergies announced its decision to stop all purchases of Russian oil or oil products by the end of 2022 at the latest. Its CEO Patrick Pouyann assured Wednesday that he could not do without Russian gas without which part of of European economic activity would come to a halt. The action rose 0.32% to 46.13 euros.