(News Bulletin 247) – The Paris Stock Exchange seems to be heading for a third session of decline in a row this Wednesday, with caution being called for before the publication of inflation figures which could consolidate the decline in the markets or, on the contrary, their allow it to bounce back.
According to the first information available, the CAC 40 index could start the day with a loss of 0.5% to 7173 points.
The Parisian market has had a sluggish start to the week so far, illustrated by a second day of decline on Tuesday (-1.3%) which brought it back towards the symbolic threshold of 7200 points.
‘The difficulty of the moment is to bring together enough elements to relaunch the progression of the Parisian index’, recognize analysts at Kiplink Finance.
Investors await with some feverishness the consumer price statistics which will be published during the day in France, then in Germany.
Figures below consensus, such as those unveiled in Spain yesterday, could encourage a further decline in government bond yields and allay fears about European Central Bank (ECB) rates.
As things stand, the month of May should end with a loss of around 3.8% for the CAC 40 index.
“May will have finally turned out to be a very interesting month, with huge gains for technology stocks and a decline in defensive stocks, unless something unlikely happens today,” commented the Danske Bank teams.
The good performance of ‘high tech’ securities – especially those linked to artificial intelligence such as Nvidia – enabled the Nasdaq to gain 0.3% yesterday, but the Dow Jones lost 0.1%.
The risk of a confrontation in Washington over the debt ceiling also continues to worry managers, who fear a repeat of the episodes of default that had shaken the country’s economy in the past.
If US President Joe Biden and Speaker of the House of Representatives Kevin McCarthy have reached an agreement on the debt ceiling, Republican lawmakers, who have yet to validate the agreement, could judge that their leader has done too much concessions.
A decisive vote is expected today in the House of Representatives, where the Republicans have the majority, before the project is submitted Friday to the Senate, which is controlled by the Democrats.
Time is running out, as the Treasury Department estimates that ‘X date’ – by which the government will run out of cash – is Monday, June 5.
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