(News Bulletin 247) – The Parisian index rose slightly at mid-session this Wednesday, while all eyes are on the Federal Reserve which is ending its two-day meeting this evening.
The Paris Stock Exchange is regaining a (very) little bit of momentum. The CAC 40 advanced by 0.37% at mid-session this Wednesday, returning above 7,300 points (7,309.36 points).
After a series of increases, oil prices are finally starting to fall, suffering from profit-taking. The North Sea Brent contract for November lost 1.05% to $93.35 per barrel, while the October contract for WTI listed in New York lost 1.07% to $90.22 per barrel.
“We think that the rebound in oil is exaggerated, reinforced by the repositioning of investors who were negative until recently, and our scenario predicts that oil prices return towards 85 dollars per barrel in the short term,” estimates Xavier Chapard of LBPAM.
“The decision (…) of the Fed on interest rates provides the perfect excuse” for profit-taking, explains Tamas Varga of PVM Energy, cited by AFP, especially since the WTI contract for October expires.
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Status quo in sight for the Fed
The American Federal Reserve (Fed) ends its monetary policy meeting this Wednesday with a decision on its rates expected at 8 p.m. According to the CME Group’s FedWatch tool, investors assign a probability of 99% to key rates remaining at their current level.
“Above all, the markets will look closely at the new key rate projections from Fed members which could indicate fewer rate cuts in 2024,” adds Xavier Chapard.
On the value side, Air Liquide dropped 2.5% while Stifel sees “short-term challenges” for the stock and considers that the consensus on the company’s sales for the third quarter is now “demanding”.
Outside the CAC 40, Ubisoft is taking off (+6.5%) driven by the good commercial start of the new part of the series “The Crew”. On the smaller capitalization side, Visiativ lost 11%, weighed down by half-year accounts marked by a sharp deterioration in profitability.
On foreign exchange, the euro gained 0.2% against the dollar to 1.073 dollars.
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