(News Bulletin 247) – The Paris Stock Exchange begins the week in the red, investors opting for caution before a week marked by the decisions of several central banks. The CAC 40 lost 1% on Monday at midday, also weighed down by Société Générale.

The Paris Stock Exchange is consolidating to start a week which will once again be punctuated by numerous meetings. The CAC 40 lost 1% on Monday midday to 7,299.08 points after achieving its best weekly performance in two months, with a gain of 1.91%.

The markets are therefore showing caution ahead of the decisions of several central banks, the most anticipated of which being that of the American Federal Reserve on Wednesday. As with the European Central Bank on Thursday, operators are feverishly awaiting the verdict from the American institution.

It is expected to keep its key rates unchanged on Wednesday. Moreover, the Fed Watch tool estimates…99% the probability that the Fed will pause its rates after 11 increases since March 2022. For the future, however, the bets are more open.

“We believe that the FOMC (Fed Monetary Policy Committee, Editor’s note) will keep rates unchanged this week, but that it will maintain a tightening bias and forecast a final increase before the end of the year, given the resistance of demand, the still tight job market and the slow decline in inflation. We believe that the FOMC will raise 25 basis points (0.25 percentage point, Editor’s note) in November and that it will maintain the status quo until September 2024,” indicate Barclays economists.

On Thursday, the Central Bank of England will follow in the footsteps of its American counterpart and then on Friday, it will be the turn of the Bank of Japan to reveal its intentions regarding its monetary policy.

“Markets could move nervously over the coming days as they await important data from the UK and US, with central banks in both countries expected to announce further interest rate decisions in during the week,” explains Simon Peters, market analyst at eToro.

Red card for Société Générale

Societe Generale’s new objectives receive a frosty reception on the stock market, the red and black bank shows the biggest drop in the CAC 40 (-10%). ALD, its long-term automobile rental subsidiary, which also delivered new medium-term objectives, collapsed by 12.8%.

Bouygues (-0.2%) intends to submit a proposed public buyout offer followed by a squeeze-out targeting the Colas shares it does not hold at a price of 175 euros per share.

On the foreign exchange market, the euro is stable against the dollar at 1.0672 dollars. Oil contracts rise to highest levels since November The November North Sea Brent contract gains 0.4% to $94.33 per barrel, while the October WTI contract listed in New York advances 0 .5% to $90.50 per barrel.