(News Bulletin 247) – The Parisian index ended up 0.52% in the session, with the market rallying to the idea that the Federal Reserve could mark a pause in its rate hike cycle.

The Paris Stock Exchange is starting the week on the right foot. The CAC 40 thus ended the session on an increase of 0.52% to 7250.35 points, while the market awaits several events to come during the week.

Among these appointments are obviously the meeting of the monetary policy committee of the European Central Bank, on June 15, and that of the American Federal Reserve (Fed), on June 13 and 14.

“After 10 straight monetary policy committee meetings in which the committee raised its policy rate, most observers expect the Fed not to hike on Wednesday, keeping the fed funds rate at 5.125%,” said Stephen Innes of SPI asset management.

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Towards a “skip” from the Fed?

“However, the meeting communiqué, summary of economic projections (SEP) and Chairman Powell’s press conference will get the bulk of the attention, which should be hawkish. [restrictive, NDLR]signaling the likely need for further policy tightening as early as the July 26 meeting,” he added.

This would then be what is called a “skip”, that is to say a temporary pause before a potential new rise at the next meeting.

For the ECB, the Swiss bank Pictet Wealth Management anticipates a further rate hike of 25 basis points, or 0.25%, and believes that Christine Lagarde, the president of the central bank, could signal that there is still “some way to go to be done” to get inflation back on track.

But before focusing on this “central bank” sequence, investors will decipher the US inflation figures which will be published on Tuesday afternoon.

Nexans with the right voltage

On the value side, several notable movements were recorded. Tech in particular picked up steam with Teleperformance (+3.9%) Capgemini (+3.1%) and STMicro (+3%) in the wake of the good performance of the Nasdaq (+0.5% shortly before the European fence).

Nexans (+8%) was carried by an increase in recommendation from Bank of America, which went on the purchase on the title, judging that the action constitutes the best way to play the energy transition in cables.

Conversely, the Luxembourg satellite operator SES plunged (-14.6%) after the announcement of the departure of its managing director, Steve Collar.

For its part, the Casino action continues to chain the stock market surges (+10.3%), admittedly at a depressed level of valuation, while the future of the Saint-Etienne distributor remains shrouded in thick fog.

On other markets, the euro gained 0.1% against the dollar at 1.0757 dollars. Oil prices are weighed down by fears about demand. North Sea Brent for August delivery fell 2.8% to $72.69 a barrel, while July Brent on New York-listed WTI fell 3.3% to $67.78 a barrel.