(News Bulletin 247) – The CAC 40 is moving close to equilibrium at mid-session as investors await the decision on rates from the American Federal Reserve.
The Paris Stock Exchange is at the bottom of the wave this Wednesday. The CAC 40 took 0.02% to 6887.22 points at mid-session, in anemic volumes on this November 1 public holiday.
The big meeting of the day will take place at 7 p.m., when the American Federal Reserve (Fed) will deliver its decision on its rates.
Then its president Jerome Powell will speak. A status quo is widely anticipated by the market.
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Danone in good shape
The central banker’s speech will be keenly followed by investors who will be watching for the slightest signal that could allow them to anticipate the Fed’s next decisions.
Deutsche Bank economists believe Jerome Powell “will likely reiterate that the Fed’s Monetary Policy Committee will proceed ‘cautiously’ in future decisions.”
“Most members of the Fed seem to think that more time is needed to assess the effects of previous rate hikes on the American economy, which seems eminently reasonable,” notes Michael Hewson of CMC Markets.
As the news this Wednesday is resolutely focused on the United States, the market will also monitor the publication of the ADP firm’s report on American employment in October, a prelude to Friday’s official figure, as well as job openings for the month. of September.
On the value side, Danone gained 1.4% supported by Morgan Stanley which raised its advice on the value to “overweight”, judging that the group’s recovery is starting to bear fruit.
Valeo for its part advances by 2.9% while Goldman Sachs went from “sell” to “neutral” on the value.
Note that in Copenhagen, the Danish renewable energy specialist Orsted plunged 18% after the cancellation of a huge offshore wind farm project in the United States and depreciation of 3.8 billion euros.
On other markets, the euro fell 0.3% against the dollar to 1.0544 dollars. Oil prices are rising significantly. The January contract on North Sea Brent rose 1.9% to $86.66 while the December contract on WTI listed in New York advanced 2% to $82.69 per barrel.
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