(News Bulletin 247) – The Paris Bourse is expected to open lower on Thursday morning, while government bond yields continue to climb amid fears of tighter monetary policies by major central banks.

Around 8:15 am, the ‘future’ contract on the CAC 40 index – June delivery – fell 16.5 points to 7186.5 points, announcing a start to the session on a note of weakness.

The Parisian market had ended Wednesday’s session with a limited decline of 0.1% to 7202 points, after another undecided session and still devoid of volumes.

From a technical point of view, the CAC seems to want to camp on the symbolic threshold of 7200 points, but graphic analysts warn that a depression of this support could foreshadow a downward acceleration towards 7150 or 7105 points.

On the bond market, the yield on 10-year US Treasury bonds, a rapid rise in which has often been the cause of stock market corrections, rose sharply above 3.78%.

The trend is the same in Europe where the German ten-year rises to 2.45%, while the French OAT of the same maturity has now reached 3%.

Fears of an acceleration in monetary tightening were fueled yesterday by the Bank of Canada, which announced a surprise rate hike and warned that further hikes may be needed.

In its press release, the central authority justified its decision by the persistence of strong underlying inflation.

“The big question now is whether the Fed will follow suit with another hike next Wednesday or whether it will leave rates unchanged after ten hikes in a row,” said strategist Jim Reid. at Deutsche Bank.

With higher interest rates bound to weigh on activity around the world, investors are more worried than ever about growth.

Economically, the main meeting of the day is set at 2:30 p.m., with the publication of weekly jobless claims in the United States.

‘We can roughly estimate at 250.00 the threshold above which unemployment claims could signal a turnaround in the labor market’, recall the teams of Oddo BHF.

Although employment has shown some signs of weakening recently, the rate of job creations was well above this threshold in May, with an average of 339,000.

In the euro zone, investors will take notice of the final GDP figures for the first quarter, which should show sluggish growth in the region.

On the foreign exchange market, the euro continues its recovery against the dollar, around 1.0715, traders expecting that the aggressive policy led by the ECB will continue to support the European currency.

On the energy side, oil prices are settling, Saudi Arabia’s decision to cut production from July has not really stemmed the fall in oil prices.

The price of a barrel of American light crude oil (West Texas Intermediate, WTI) fell 0.2% below 72.4 dollars and that of Brent dropped more than 0.2% to drop below 76.8 dollars.

“This phenomenon of falling oil prices, while production continues to decline, could at some point raise fears about global demand and therefore the solidity of the economy,” said Vincent Boy, market analyst at IG France. , in its latest weekly update.

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