(News Bulletin 247) – The trend was undecided on the Paris Stock Exchange, while investors lacked clear information on Tuesday to position themselves. The CAC 40 symbolically gained 0.1% at the close the day after a decline of almost 1%.

Financial markets have limited risk taking, still awaiting verdicts from central banks as signs of an economic slowdown loom on the horizon. The CAC 40 oscillated around equilibrium, before climbing 0.1% to 7209 points at the close.

On Monday, the star Parisian index had lost nearly 1% scalded by the publication of a disappointing ISM services index in the United States for the month of May and after statements suggesting that central banks are not done. with the fight against inflation.

Fears that have been fueled by the Reserve Bank of Australia’s recent stance on rates. To everyone’s surprise, on Tuesday morning it increased its main key rate by 25 basis points (0.25 point) to 4.1%, justifying this new monetary tightening by inflation that is still too persistent.

Markets now fear that other central bankers will take inspiration from the Reserve Bank of Australia. The words of the President of the European Central Bank, Christine Lagarde plead for such a scenario, on June 15th. On Monday, she said she did not see a “peak” for core inflation yet.

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Stop or even for the Fed

Before, it is the American Federal Reserve (Fed) which will make its monetary decision at the end of its meeting on June 13 and 14. Pending the official release of the American institution, investors will therefore be on the lookout for the slightest indication of its monetary policy in the next statistics on the agenda.

“The weakness in the ISM services report stood in stark contrast to other services sector numbers, raising more questions than answers about the strength of the U.S. economy ahead of next week’s Fed meeting,” notes Michael. Hewson of CMC Markets. “Markets are increasingly rallying to the idea that the Fed will not pass a rate hike in June before proceeding with a further hike in July,” notes Deutsche Bank.

Publicis, headlining after an acquisition

As for values, Publicis finished at the top of the CAC 40 thanks to a rise of 3.5% at the close, the day after the acquisition of Corra, a leader in e-commerce recognized by Adobe as one of the best trading companies in North America.

Safran lost 0.2% after saying it was in talks to buy parts of Raytheon Technologies in what could be the company’s largest acquisition since 2018.

On the side of smaller caps, Biocorp jumped 15.7% after the announcement of its acquisition by the Danish group Novo Nordisk.

Osmozis grew by 10.1%, the specialist in the digital transformation of campsites and holiday residences in Europe significantly recovered its accounts between September and February 2022-2023.

On other markets, the euro lost 0.2% to 1.0692 dollars. For their part, oil contracts relapsed, undermined by fears of an economic slowdown. The North Sea Brent contract for August lost 0.5% to 76.35 dollars a barrel while the July contract on New York-listed WTI returned 0.4% to 71.89 dollars a barrel. On Monday, they were driven by announcements of production cuts from Saudi Arabia.