(News Bulletin 247) – A slight rebound was observed on the CAC 40 on Monday, without any real catalyst, however. The market is especially waiting for the Jackson Hole symposium at the end of the week.

The gain recorded on Monday by the CAC 40 is not huge. But it has the merit of having put an end to a series of four consecutive declines in the Parisian index.

The CAC 40 thus ended up 0.47% at 7198.06 points without a real catalyst coming off. But the flagship barometer of the Paris Bourse had lost 2.4% last week and the market thus recorded a slight rebound.

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No major economic indicator was on the market’s agenda on Monday. The only tangible macroeconomic news: The People’s Bank of China, China’s central bank, cut a key policy rate on Monday, cutting its 1-year lending rate by 10 basis points (0.10%) to 3.45 %. But while leaving its five-year rate unchanged at 4.2%.

“Unsurprisingly, the markets were unimpressed by this decision, expecting the authorities to be much tougher,” judge Michael Hewson of CMC Markets.

Heading to Jackson Hole

The market remains on the alert overall, monitoring in particular the rise in bond rates, which contributed to its fall last week. The 10-year yield on the US Treasury bond also regained ground on Monday, moving to 4.34% against 4.25% on Friday.

In this context, the market is eagerly awaiting the Jackson Hole symposium, organized at the end of the week by the American Federal Reserve (Fed), with an intervention by its president, Jerome Powell. “Currently, the markets are expecting a more balanced tone, but it could highlight the need to keep rates higher for longer,” warns Bruno Salvatore, chief investment officer at Generali Investment Partners.

The market will also be watching Wednesday night’s second-quarter earnings release from Nvidia, the big winner of the generative artificial intelligence craze, with a nearly 210% jump in its stock year-to-date.

Car manufacturers in the spotlight

In the meantime, French stocks, particularly cyclical stocks, did well on the CAC 40, where the two car manufacturers finished at the top of the index (+1.8% for Stellantis, +1.88% for Renault).

Payments group Worldline closed 1.05% lower as Dutch peer Adyen continues to slump on the Amsterdam Stock Exchange, falling 8.6% on Monday after losing 3% on Friday and especially 39% on Thursday, following half-year results below expectations.

Virbac returned almost 3%, penalized by a lowering of the recommendation from Stifel from “buy” to “hold”. On other markets, the euro gained 0.1% against the dollar at 1.0886 dollars. Oil prices are rising. October’s North Sea Brent contract rose 0.2% to $84.98 a barrel, while September’s New York-listed WTI contract rose 0.4% also to 81, $55 a barrel.