(News Bulletin 247) – The Paris Stock Exchange is expected to be in the red on Friday at the opening but should post a positive performance over the whole week, well helped by the ebb of concerns relating to inflation.
Around 8:15 a.m., the ‘future’ contract – delivery at the end of August – on the CAC 40 index fell 28.5 points to 7412 points, announcing a start to the session on an unfavorable note.
The Parisian market had ended Thursday’s session with a gain of 1.5% around 7433 points, largely supported by the rather reassuring evolution of consumer prices in the United States.
After an almost historic drop in June, US inflation once again came out at a level in line with, or even slightly below expectations, in July.
“The nature of disinflation is changing compared to the first half,” said Bastien Drut, head of research and strategy at CPR AM, who points out that disinflation is now becoming “more global”.
‘It is mainly energy that lowered inflation in the first half, but it is underlying inflation (housing and to a lesser extent transport) that will fall in the second half’, warns the ‘economist.
Investors could nevertheless position themselves cautiously ahead of what promises to be a busy day, particularly with a view to the publication of producer prices in the United States.
These data should confirm that the peak of inflation has very clearly passed in the United States and that the country has covered more ground than Europe in its fight against inflation.
In this context, the bond market remains rather calm, investors seeing the prospect of further rate hikes receding and the scenario of a soft landing for growth strengthening.
At 4.08%, the yield on ten-year Treasuries remains above the highly watched technical threshold of 4%.
Oil continues to consolidate after its gains of the past few weeks. Brent fell 0.1% to 86.3 dollars a barrel while US light crude (West Texas Intermediate, WTI) dropped 0.1% to 82.7 dollars.
Barring a major trend change during the session, the CAC 40 index is heading at this stage for a weekly gain of around 1.6%.
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