(News Bulletin 247) – The Paris Stock Exchange should continue to rise on Thursday morning pending a new series of American indicators likely to influence the Fed’s next decisions.
Around 8:15 a.m., the ‘futures’ contract on the CAC 40 index – February delivery – advanced 45.5 points to 7348 points, announcing a resumption of the upward movement beyond the symbolic threshold of 7300 points.
The session will be animated by numerous publications of macroeconomic indicators in the United States, with among others the traditional registrations for unemployment benefits and the Philadelphia Fed index.
The residential construction figures, in this case building permits and housing starts, should in particular show that the worst is over for the real estate sector, even if it seems premature to wait for a real turnaround in tendency.
Producer prices should, for their part, confirm the downward trend in inflation across the Atlantic under the effect of the decline in commodity prices since their peak last spring.
All of these statistics should certainly fuel the debate on the Federal Reserve’s rate hike, which remains the dominant factor in the markets today, resulting in the strength of the dollar and a recovery in bond yields.
The yield on 10-year US Treasury bonds thus reached a new high since the beginning of the year yesterday, at more than 3.80%, against 3.37% a month ago.
The signs of solidity in the American economy, as well as the timid decline in inflation, have led to a temporization phase in New York lately, reinforcing the scenario of a continuation of the monetary tightening currently orchestrated by the Fed.
On Wednesday, Wall Street thus ended on a measured rise, the Dow Jones index having ended the session on a symbolic gain of 0.1% and the Nasdaq on a small increase of 0.3%.
In Paris, the CAC index managed to end yesterday’s session with an increase of 1.2% which enabled it to reach the threshold of 7300 points, mainly thanks to the good results of Kering and Carrefour.
Corporate results should also continue to drive the rating today. It will be necessary to follow, among other things, the reactions of the shares Airbus, Air Liquide, Nestlé Repsol or Schneider Electric after the publication of their accounts.
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