(News Bulletin 247) – The Parisian index took 0.8% at mid-session as the market awaits the US Federal Reserve’s monetary policy decision this evening. Fears over US regional banks do not make it sway.

When a correction occurs, the CAC 40 seems to be able to count on its sure values ​​to get going again. The Parisian index increased by 0.6% at mid-session on Wednesday, to 7,426.95 points, taking up part of the ground conceded the day before, with a decline of 1.45%.

Luxury is at the forefront to feed this rebound since the KOHLs (Kering, Hermès, LVMH, L’Oréal) win between 1.6% and 2.1%.

Market operators are therefore taking refuge in the most sparkling values ​​of the rating while awaiting the outcome of the monetary policy meeting of the American Federal Reserve (Fed) this evening.

An increase in key rates of 25 basis points, or 0.25 percentage point, is widely expected by the market. But the whole question will be whether the members of the central bank, including its president Jerome Powell, will signal other increases to come or, on the contrary, a break.

Another tough session ahead for US regional banks

“There is no doubt that many believe the Fed will start cutting interest rates towards the end of the year, but will we see any hints of that in the Fed’s commentary today?” asks Naeem Aslam of Zaye Capital. “Furthermore, traders would also like to know what the Fed has to say about the ongoing banking crisis and whether it is ready to take responsibility for it – after all, the banking crisis only started because of a aggressive monetary policy,” he continued.

Wall Street remains worried about the fragility of regional banks, which again unscrewed on Tuesday, investors wondering which bank will sink or be pushed into the arms of a larger establishment, after Silicon Valley Bank, Signature Bank and First Republic. And this Wednesday’s session promises to be still difficult. For example, Pacific West lost 12.4% in pre-opening trade, after already plunging 28% on Tuesday.

But this turmoil is not really spreading to European values. BNP Paribas, which published accounts slightly above expectations for the first quarter, thus takes 0.5%.

As for other publications, Stellantis fell back by 1.2% after having published a turnover slightly higher than expected by analysts, which is not enough to allay market fears on the evolution of prices at come in the next few months. Investors also take the opportunity to sell the Renault title, which lost 1.6%.

Air France-KLM, for its part, dropped 4%, penalized by a negative cross-reading of the results of Lufthansa, whose net loss in the first quarter proved to be stronger than expected by analysts.

On other markets, the euro gained 0.3% against the dollar at 1.1037 dollars. Oil for its part continues to fall, weighed down by fears of recession in the United States. The contract on Brent from the North Sea for delivery in July fell 2.8% to 73.21 dollars a barrel while that of June on WTI listed in Paris, yielded 3% to 69.49 dollars a barrel.