(News Bulletin 247) – The CAC 40 is moving up mid-session, while luxury is still shining a little. The fall in the producer price index in the United States leads the market to hope that the Federal Reserve will pause its rate hikes.
The CAC 40 is preparing to end on a positive note a week in which it has continued to beat record after record. The Parisian index won 0.22% to 7,497.51 points at mid-session, after having exceeded 7,500 points at the opening of the market. Over the week as a whole, the CAC 40 is currently up 2.4%.
The market is benefiting from signs of weakening prices in the United States. On Thursday, the producer price index thus fell in March by 0.5% over one month. This bodes well for an upcoming break from the Federal Reserve (Fed) in its monetary tightening cycle.
“Traders believe now is the right time for central banks to ease the rate hike cycle. Yesterday’s US Producer Price Index (PPI) data provided evidence of this, confirming that the bubble inflationary has started to deflate,” said Naeem Aslam, market analyst at Zaye Capital Markets.
Stratospheric sales for Hermes
To be seen if the trend will continue after the publication of the quarterly results of the American banks, Citi, JPMorgan and Wells Fargo revealing their accounts at the start of the afternoon.
On values, the CAC 40 is still driven by luxury, in particular by Hermès International, which published brilliant sales in the first quarter, with organic growth of nearly 24% over one year.
Alstom drops 3% as the market sanctions the announcement of the departure of its financial director, Laurent Martinez, who will join Orange on September 1st.
On other markets, the euro gained 0.1% against the dollar at 1.1063 dollars. Oil prices are moving up a bit. The North Sea Brent contract advanced 0.3% to 86.35 dollars a barrel while the NYSE-listed WTI advanced 0.3% to 82.41 dollars a barrel.
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