(News Bulletin 247) – The CAC 40 is moving up slightly at mid-session on Wednesday. Risk taking is low pending the outcome of a rather complicated Federal Reserve monetary policy committee meeting.

After several very volatile sessions, the Paris Stock Exchange is currently experiencing a less turbulent day. The CAC 40 is moving up slightly, taking 0.3% to 7,134.38 points at mid-session.

“Markets seem to be stabilizing after a week of extreme anxiety created by fears over the banking system. The succession of measures already taken by the American authorities to reassure the market on the viability of regional banks [semble] to carry [ses] fruits. All the more, that [Janet] Yellen, the Treasury Secretary, said that if it was necessary other measures could be taken, in particular to dispel any fear about the security of deposits in these banks”, explain the economists of La Banque Postale Asset Management.

Market operators are very clearly limiting risk-taking before the end of the US Federal Reserve meeting this Wednesday evening, with a decision on its key rates.

A balance to be found for the Fed

For now, investors are attributing a 90% probability to a rate hike of 25 basis points, or 0.25 percentage points, according to data from the CME Group.

The US central bank must strike a balance between preserving the financial system, which has been battered in recent weeks since the collapse of Silicon Valley Bank, and the need to rein in persistent inflation.

“A 25 basis point increase in key rates seems to us the most likely scenario for the Fed. Nevertheless, everything will depend on the diagnosis of the risks to financial stability that central bankers will make. The most reassuring scenario would be this moderate increase Indeed, this would imply that the Fed would reinforce the market on the fact that we are not faced with a systemic risk”, judge the economists of La Banque Postale Asset Management.

On the values, the movements come back on fairly tight variations. Ubisoft (+2%) is driven by an increase in recommendations from HSBC for purchase.

Bureau Veritas finds itself under pressure following the launch by its reference shareholder Wendel of a bond issue exchangeable for existing Bureau Veritas shares.

Fnac Darty increased by 0.7% while the Czech businessman Daniel Kretinsky has strengthened its capital, exceeding 25%, according to a notice published by the Financial Markets Authority.

On the other markets, the euro rose 0.2% against the dollar to 1.0796 dollars. Oil prices are changing little. The North Sea Brent contract for delivery in May fell 0.3% to 75.12 dollars a barrel while that of the same term on WTI listed in New York lost 0.3% to 69.45 dollars on barrel.